Cycle to Work Scheme

How to buy a bike as part of a Cycle to Work Scheme.

The Cycle to Work Scheme allows you to sacrifice part of your annual salary in exchange for hiring a bike (or electric bike) and equipment.

To take part in the Cycle to Work Scheme your employer usually needs to enter into a contract with one or more scheme providers. These include:


At least 51 per cent of the bike’s use must be for commuting.

The employer, rather than the employee, owns the bike. At the end of the hire period (usually 12 months) the employer may then choose to transfer ownership of the bike to the employee for the ‘fair market value’.

This value depends on the age and condition of the bike when ownership is transferred. Further details about the fair market value are available on the HM Revenue and Customs website.

Bicycle shop discounts

If your employer operates a staff travel plan to promote sustainable travel, or you live on a residential development where a residential travel plan is in place, then your local cycle shop may offer a discount.

Last updated:
5 January 2024
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