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Setting up a cycle to work scheme

Cycling is not just good for your health and environment- it can be good for your wallet to!

Salary sacrifice scheme

The initial cost of buying a bike can be off putting for employees. 

The Cycle to Work Scheme is a salary sacrifice scheme. The employee saves on tax and National Insurance contributions as the costs are taken out before tax. 

The salary sacrifice arrangement is usually in place for one year and any employer of any size can take part. 

The employee pays for the bike through their salary so there is no increased admin burden.

At the end of the year the employee makes a nominal payment to 'buy' the bike.

Cycle to work scheme providers

You can set up your own Cycle to Work Scheme, or there are providers who can do it for you. 

If you want to set up your own scheme, there is guidance available from GOV.UK cycle to work scheme guidance for employers (opens new window) to help you get started. 

Alternatively, these companies will run a scheme for you:

Bike2Work (opens new window)
CycleScheme (opens new window)
Cycle2Work (opens new window)
Green Commute Initiative (opens new window)

It is important to consider how your employees will use their cycles, paying particular attention to storing them at your workplace. You should ensure you have suitable and secure workplace cycle facilities.