Cycle to work scheme

Welcome to our comprehensive guide on the Cycle to Work Scheme in the UK. This scheme offers a fantastic opportunity for employees to embrace a healthier and more sustainable mode of transportation while enjoying significant savings on the cost of a new bike and accessories. Here, we outline how the scheme works, its benefits, and how both employers and employees can take advantage of it.

What is the Cycle to Work Scheme?

The Cycle to Work Scheme is a government initiative aimed at promoting cycling as a means of commuting to work. It allows employees to purchase a new bike and cycling equipment through their employer, with the cost deducted from their salary (before tax) over a specified period, typically 12 to 18 months. This scheme effectively reduces the upfront cost of buying a bike and accessories, making cycling more accessible to a broader range of people. Here at Ebike Republic we are partners store of the following schemes.

How does it work?

Employee Chooses Bike and Equipment: The employee selects the bike and cycling accessories they wish to purchase from a participating retailer. These can include helmets, locks, lights, panniers, and more.
Employer Arranges Salary Sacrifice: The employer purchases the chosen bike and equipment on behalf of the employee, using a salary sacrifice arrangement.
Salary Deductions: The cost of the bike and equipment is then deducted from the employee's gross salary over the agreed-upon period, typically through a salary sacrifice scheme. This means the employee pays for the bike and equipment using their pre-tax income, resulting in significant savings.
Ownership Transfer: At the end of the salary sacrifice period, the employee may have the option to purchase the bike and equipment outright at a fair market value, or the ownership may be transferred to them at no additional cost.

What are the benefits of the Cycle to Work Scheme?

Cost Savings: Employees can save up to 42% on the cost of a new bike and accessories through tax and National Insurance contributions savings. Take a look at the worked example below for more details.
Health and Wellbeing: Cycling to work promotes physical activity, improves cardiovascular health, reduces stress, and boosts overall wellbeing.
Environmental Impact: By choosing cycling over driving or public transport, employees contribute to reducing air pollution and carbon emissions, supporting environmental sustainability.
Convenience: The scheme offers employees a convenient way to access high-quality bikes and equipment through their workplace, with the added benefit of spreading the cost over time. It's essentially purchasing your equipment on an interest-free loan with up to a 42% discount.

How to participate?

Employer Enrollment: Employers must register for a Cycle to Work Scheme with a participating provider or through the government's Cycle to Work Scheme website. It's often best to check first with your employer if they are already signed up for a scheme and who it is with. If not, let us know, and we will provide more information on how they can proceed.
Employee Registration: Once enrolled, employees can sign up for the scheme through their employer and select the bike and equipment they wish to purchase. You may need to obtain a quote from us before submitting your application. Doing so is easy using the form below.
Salary Sacrifice Agreement: Employers and employees agree on the salary sacrifice arrangement, including the value of the bike and equipment, the repayment period, and the method of salary deduction.
Receiving your certificate: Once your application has been approved, your chosen scheme will provide a certificate to redeem against the selected equipment, and we can proceed with organising your collection/delivery.

The Cycle to Work Scheme offers a win-win solution for employers and employees, promoting healthier and more sustainable commuting habits while providing significant cost savings. Embracing cycling as a mode of transportation benefits individuals and contributes to a greener and more environmentally friendly future for all. Join the Cycle to Work Scheme today and pedal towards a healthier, happier, and more sustainable tomorrow.