This page provides a brief introduction to the UK Government’s Cycle to Work scheme and how it is administered.
The scheme is very flexible and can be applied to any type of bike – including both pedal and e-Bikes (excludes used, ex-demo, and eBay bikes). Once you decide the scheme is right for you just let us know when enquiring about or ordering a bike, so that we can prepare the admin side for you.
What is the Cycle to Work Scheme?
To promote healthier journeys to work and to reduce environmental pollution, the 1999 Finance Act introduced an annual tax exemption, known as the Cycle to Work scheme, which allows employers to provide cycles and cyclists’ safety equipment to employees as a tax-free benefit. The exemption was one of a series of measures introduced under the Government’s Green Transport Plan. The official Department of Transport guidelines give the detailed background on the scheme, but are quite heavy going!
Is there more than one scheme?
There is only one Cycle to Work tax exemption scheme – but there are a number of scheme operators that can help in the implementation and administration of the scheme on behalf of employers and employees. They all work in slightly different ways and therefore can offer slightly different overall savings.
We work with two Cycle to Work scheme operators:
- The Green Commute Initiative (who are the easiest to deal with, and who offer the highest levels of savings)
- Cyclescheme.co.uk (who are the biggest operator)
Halfords Cycle2Work: Please Note that we can no longer accept any applications through this scheme due to operational difficulties, commission charges and delays at Halfords.
To give you an idea of potential savings, please try out the calculator below. We are only too happy to talk to you about how you can purchase a bike from us under any of the schemes.
Each Cycle to Work scheme operator will have slightly different procedures and guidelines, but all will conform the UK Government tax exemption regulations, and all will deliver significant savings (of up to 42% for most, and up to 47% with Green Commute Initiative) on the purchase price of new bikes and accessories.
The UK Government has now removed the upper price limit that used to apply to the bike’s purchase price (it was formerly £1000) – it is now down to individual employers to set a price limit, or they can choose to set no limit at all.