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All you need to know about the salary sacrifice bike scheme

What is the salary sacrifice bike scheme?

The salary sacrifice bike scheme, or the Cycle to Work Scheme, is a government-backed way to make obtaining your new bike easier, simpler, and, most importantly, cheaper.

Through a salary sacrifice bike agreement with your employer, you can pay for your brand-new bike and accessories with completely tax-free monthly instalments that are automatically deducted from your salary.

How does the Cycle to Work Scheme work?

The Cycle to Work Scheme offers employees a cost-effective way of obtaining bikes and / or accessories through the business they work for, without any upfront costs or a direct debit. Instead, payment for the goods are automatically deducted from an employee’s salary (aka salary sacrifice), meaning you won’t be paying tax or National Insurance on your items.

Plus, employers can make savings on their National Insurance contributions of up to 13.8% when they sign their business up to the scheme, as employees are essentially reducing their gross pay. It’s a win-win!

Your monthly deductions from your salary can vary depending on:

  • The price of the bike chosen. This varies depending on the size and type of bike you acquire e.g., electric, foldable, mountain, or road bike.
  • Which accessories package you have chosen.
  • The time period you wish to spread the payments over.

The agreement between you and your employer will stay in place until your contracted period finishes or when your employment comes to an end.


How does the scheme save you money?

Unlike the usual process when it comes to getting a new bike, you will not have to pay any upfront costs. The payments will be taken from your monthly salary before National Insurance and tax are deducted, which means that you won’t be paying tax on that amount.

And, thanks to our warranty and insurance benefits, you can avoid large out of pocket expenses should your bike become faulty or damaged.

Bring the Cycle to Work Scheme to your workplace

Are you interested in signing up for the salary sacrifice bike scheme? Asking your employer to partner with an affiliated provider, like Cycle Solutions, can help them sidestep the hassle of managing the Cycle to Work Scheme themselves. Offering a personalised online store, branded documentation, plus expert help and advice, the experts at Cycle Solutions can help both you and your employer through every step of the application process.

Cycle Solutions are a fully compliant provider of the Cycle to Work Scheme, working with companies all over the UK, including HMRC and the NHS. We are proud to offer:

  • An 18-month warranty.
  • Free insurance (this must be activated by the employee once they have received their goods).
  • Free bike tools & bag.
  • Reward points to use on any future purchases.

How to get your bike through the salary sacrifice bike scheme

We have made the process of getting your new bike through the Cycle to Work Scheme simple and hassle-free, for both you and your employer. Once your employer is partnered with Cycle Solutions, there are two ways to acquire your new bike. You can go directly through our associated online shop,, or you can go through one of our partner bike shops.

Through our online shop

Claiming a bike through our website is made simple with the Cycle Solutions portal, showing you all the bikes and accessories included in your package. After you’ve placed your order, we cover everything! Then, once the hire agreement is approved, we’ll deliver the equipment directly to your door.

Using one of our 1,250 independent UK retailers

We’re also partnered with a range of bike shops all over the UK. Use our interactive map to find your nearest Cycle Solutions Cycle to Work retailer and choose the bike package that suits you. To order from a local retailer, follow these easy steps, then pop into the shop to pick up your brand-new gear.

Refer your employer

Would you like your employer to bring the Cycle Solutions’ Cycle to Work Scheme to your workplace? Simply fill in our contact form.

Contact form