If you’re considering making the switch to a pedal-powered commute or would like to upgrade your current commuting bike then it’s worth checking if your employer is part of a Cycle to Work scheme with a provider such as Cyclescheme or Halfords Cycle2Work.
Cycle to Work normally involves hiring a bike and eligible equipment through your employer, using salary sacrifice.
A few different scheme providers have their own variations but the basic idea is the same;
- Your workplace registers with the provider
- You choose eligible equipment
- Your employer arranges the hire
- You give up part of your gross salary in return for use of the equipment
You agree to give up part of your gross salary in return for the use of the equipment. Salary sacrifice can reduce the Income Tax and National Insurance you pay. Your overall saving depends on your circumstances, the scheme terms and any payment required to take ownership. Ask your employer or provider for a personalised quotation.
The bike does not automatically become yours at the end of the hire period. Depending on the provider’s terms, you may be able to continue hiring it, pay to take ownership or return it. Check the end-of-hire ownership options before joining.
Employers may also save on National Insurance, depending on the arrangement.
Check out some of the FAQs from two of the main providers below, if you would like to know more.