What Is Cycle to Work

The Cycle to Work scheme is a great way to get up to 42% off the price of a new bike and safety equipment. This government backed salary sacrifice scheme is available to PAYE employees in the UK and is the most cost-effective way to get a bike for commuting. You can even get an e bike to make your commute easier. Save money with tax free bikes.

Cycle to work is a salary sacrifice scheme. This means the cost of a new bike and cycling equipment is deducted from your salary as a non-cash benefit, so you save on tax and national insurance. Your employer buys the bike for you to ride to work and you ‘hire’ it from them. The ‘hire’ period is usually 12 or 18 months with monthly payments taken directly from your payslip before tax deductions. As you don’t pay income tax or national insurance on the scheme payments you will save between 32% and 42% (depending on your tax band) on the overall cost of your new bike and accessories. Although your employer owns the bike, effectively it’s yours to use as you wish throughout the ‘hire’ period.

What Happens At The End of The Hire Agreement?

1 You can return the bike. 2 You immediately take ownership of your bike and pay a fee based on ‘fair market value’. HMRC has set fair market values that employers must pay to keep the bike. So, you may be asked to pay up to 25% of the value of a bike costing more than £500 after 12 months. 3 Extend your hire agreement to 36 months for a single small refundable deposit (3% or 7%). During your extended hire agreement, you will make no further monthly payments. At the end of the 36 months you can either choose to send your bike back to your Cycle to Work provider (and your deposit will be refunded) or you take ownership of the bike. No further payments are needed.

How Do I Get A Cycle To Work Bike

1 CONTACT YOUR HR DEPARTMENT Find out which scheme your employer uses. Your Employer Code. How much you can spend on your new cycling equipment. This limit is set by your employer. 2 CHOOSE YOUR CYCLING EQUIPMENT. This can include a bike and/or cycling safety equipment. Most items are eligible under the scheme. Click here to see what items are not included. Make a note of the total cost of your basket, you'll need this for your voucher, or use our online quote form. 3 GET YOUR CYCLE TO WORK VOUCHER. Different scheme providers have different names for the cycle to work voucher: i. Halfords Cycle 2 Work = LOC (Letter of Collection) ii. Cyclescheme = Certificate Number and Redemption Code iii. Other Schemes = Cycle to Work Voucher. Get your Halfords LOC Cycle to Work Voucher here. Get your Cyclescheme Certificate Number and Redemption Code here. For other providers contact your HR department. 4 REDEEM YOUR VOUCHER AT TREDZ. You can do this directly at checkout for Halfords Cycle 2 Work and Cyclescheme. Enter your voucher code at the checkout by clicking the Cycle 2 work icon ‘Redeem a cycle to work voucher’ box. You can then arrange delivery of your order as normal. For other providers, email us your signed and dated voucher with details of your order. We will be in touch to arrange delivery.

AVAILABLE WITH CYCLE TO WORK SCHEMES

Cycle To Work Scheme

Q: How Much Can I Save

You can save between 32% and 42% on a new bike with the cycle to work scheme. Find out exactly how much you will save by using our cycle to work calculator.

Save Up To 42% Off the Price of a New Bike, Clothing, and/or Cycling Equipment

The Cycle to Work Scheme is a UK government supported tax initiative that promotes sustainable transport by making bikes and cycling gear more affordable to PAYE Employees through a salary sacrifice scheme. The scheme encourages participants health and enables cycling for fitness and fun, as well as reducing the cost of cycling equipment.

Find out More as an Employee

Find out More as an Employer

Start Your Cycle To Work Quote Here

Why Choose Tredz for Cycle to Work?

Online Bike Experts 7 days a week

Easy to buy and redeem letter of collection online

UK's widest range of Bikes, E-bikes, and cycling gear

Sale & offer Bikes included

Wide choice of Scheme Providers

Free UK home delivery*

Bikes built by Cytech qualified mechanics

365 day returns policy

Free 14 day insurance on bikes

1-2 Days Despatch

One-Stop-Shop

4.6 out of 5 Trust Pilot rating

Cycle to Work Calculator

Frequently Asked Questions

Cycle To Work - Key Benefits

Affordable Ownership:

Cycle to Work is salary sacrifice scheme that enables employees to get a bike and/or cycling equipment at a reduced cost. Through this arrangement, the bike and equipment are owned by the company till the end of the term, leasing it to the employee for commuting and recreational purposes. The lease lasts for a set period after which ownership can be transferred, or the lease extended at no extra cost to the employee. Click here for end of lease options.

Tax Savings:

The key benefit for the employee is in the tax savings. The salary sacrificed towards the cost of the bike and equipment is taken from the employee's gross salary before Income Tax and National Insurance contributions. Consequently, this leads to reduced Income Tax and National Insurance payments, potentially saving the employee 28%, 42% or 47% on the overall cost of the bike and/or equipment depending on Income Tax band.

Pay in Instalments

Another advantage for the employee is the convenience of making monthly repayments throughout the typical agreement period of 12, 18 or 24 months, depending on the scheme and the employer. This approach spreads the expense of the bike and/or equipment, significantly enhancing the affordability of cycling. By breaking down the cost over time, cycling becomes a manageable and accessible option.

Health and Well-being:

The advantages of cycling for health and overall well-being are extensive. Individuals who incorporate cycling into their routine experience improved fitness and better health. Moreover, those who cycle to work often exhibit higher levels of productivity and contentment, knowing they are actively contributing to a cleaner, more sustainable environment. Participants in the Scheme also enjoy the added benefit of using their bikes and cycling equipment during leisure time, further enhancing these positive outcomes.

Wide Choice of Bikes, Clothing & Equipment:

Tredz are registered with all of the top Cycle to Work schemes, providing an extensive array of bicycles and cycling equipment. Our team of expert advisors are dedicated to assisting you in navigating the scheme and selecting the ideal bike and gear to suit your needs.

The Cycle to Work scheme has effectively promoted cycling as a greener and healthier commuting option, while offering financial benefits to employees. It stands as a win-win initiative, benefiting both individuals seeking cost-effective transport options and the environment through reduced pollution and carbon emissions.