Cycle to Work Scheme Bike: Your Complete Guide to Tax-Free Commuting

The Cycle to Work Scheme, also called the "ride to work" bike scheme, is a UK government initiative that helps employees get a new bike and safety equipment tax-efficiently. Employees pay through salary sacrifice deductions from their gross pay, saving 30–47% on income tax and National Insurance. The employer covers the upfront cost, and after a typical 12-month period, employees can buy the bike outright.

Ideal for daily commuters and fitness enthusiasts, a cycle to work scheme bike is a cost-effective, eco-friendly way to get to work. In this guide, we’ll walk you through everything you need to know about getting started. By the end, you’ll have all the information you need to confidently ride into a tax-saving, healthier commute.

In the UK, a Cycle to Work Scheme bike refers to a bicycle (and related accessories) that an employee obtains through the Cycle to Work Scheme, a government-backed programme designed to encourage cycling for commuting. It allows employees to save 25%–47% on a new bike by paying for it gradually through salary sacrifice, which lowers income tax and National Insurance contributions.

Reference: https://en.wikipedia.org/wiki/Cycle_to_Work_scheme

How a Cycle to Work Scheme Actually Works

The Cycle to Work Scheme is a simple yet highly effective way for employees to get a new bike and essential cycling equipment while enjoying significant tax savings. Here’s a step-by-step look at how the scheme works:

1. Employee Application

To get started, you apply for a “Certificate of Title” or voucher through your employer’s HR department, using their chosen scheme provider. This certificate is your ticket to accessing a wide range of bikes and accessories.

2. Salary Sacrifice

Once your application is approved, the cost of the bike and equipment is deducted from your gross salary over a set period determined by your employer. This salary sacrifice arrangement reduces your taxable income, making the scheme highly tax-efficient.

3. Tax and National Insurance Savings

Because the deductions come from your gross pay, you don’t pay income tax or National Insurance on that portion of your salary. Employees typically save 30–47% on the total cost of their bike and accessories.

4. Collecting Your Bike

You can use your certificate or voucher to collect your bike and equipment from a participating retailer. The scheme is flexible, covering a variety of bikes, including iScooter models if desired.

5. Ownership Options

At the end of the repayment period, usually around 12 months, you have the option to purchase the bike outright from the scheme provider for a final, reduced value.

What You Can Get Through the Scheme

The Cycle to Work Scheme isn’t just for bikes. You can access:

• A wide range of bikes: electric bikes, road bikes, hybrids, and mountain bikes

• Safety equipment: helmets, locks, lights, high-visibility clothing
  

• Accessories: waterproof gear, shoes, gloves
  

• Optional accessories only: if you already own a bike, you can still claim helmets, lights, and other essentials

With this scheme, commuting becomes more affordable, eco-friendly, and convenient, whether you’re upgrading your ride or simply enhancing your cycling experience.

Benefits of Buying a Cycle to Work Scheme Bike

Participating in the Cycle to Work Scheme offers employees a host of advantages, making cycling an affordable, convenient, and health-promoting choice for commuting. Here’s why investing in a cycle to work scheme bike is so beneficial:

Affordable Ownership

The scheme operates as a salary sacrifice program, allowing employees to access a new bike and cycling equipment at a reduced cost. While the bike and accessories remain the property of the employer during the scheme, employees can use them for commuting and leisure. At the end of the agreed lease period, ownership can be transferred to the employee, or the lease extended, often at no additional cost. This structure makes high-quality bikes and gear more accessible without a large upfront payment.

Significant Tax Savings

One of the biggest advantages of the scheme is the tax efficiency. Payments for the bike and equipment are taken from the employee’s gross salary before Income Tax and National Insurance contributions, potentially saving 28%, 42%, or 47% depending on the employee’s tax band. These savings make premium bikes and safety equipment far more affordable while offering a tangible financial benefit to commuting by bike.

Flexible Monthly Payments

Instead of paying in a lump sum, employees can make manageable monthly installments over the typical 12, 18, or 24-month scheme period. This flexibility spreads the cost, reducing the financial barrier to cycling and making it a realistic option for more people.

Health and Well-Being Benefits

Cycling to work offers physical, mental, and environmental benefits. Regular cycling improves fitness, boosts cardiovascular health, and supports mental well-being. Employees who commute by bike often report higher productivity, reduced stress, and a sense of accomplishment, knowing they are contributing to a greener, more sustainable environment. Bikes and equipment can also be used for leisure activities, further enhancing these lifestyle benefits.

Wide Range of Bikes, Clothing & Equipment

Registered with all major Cycle to Work schemes, Tredz offers an extensive selection of bikes, clothing, and accessories. Expert advisors help employees navigate the scheme, guiding them to select the perfect bike and gear for commuting and recreational needs, ensuring that every participant gets the best value and experience.

Types of Bikes Available

Image
Model	U1	U2	U4	UCity	M10
Price	£356.99	£468.99	£468.99	£478.99	£488.99
Motor	Peak 500W	Peak 500W	Peak 500W	Peak 500W	Peak 500W
Max Range	40 Miles	65 Miles	55 Miles	55 Miles	60 Miles
Max Speed	15.5 MPH Default, Unlock to 20 MPH	15.5 MPH Default, Unlock to 20 MPH	15.5 MPH Default, Unlock to 20 MPH	15.5 MPH Default, Unlock to 20 MPH	15.5 MPH Default, Unlock to 22 MPH
Default Speed	6.2/9.3/15.5 MPH	3.7/6.2/9.3/15.5 MPH	6.2/9.3/15.5 MPH	3.7/6.2/9.3/12.4/15.5 MPH	3.7/6.2/9.3/12.4/15.5 MPH
Unlock Speed	9.3/15.5/20 MPH	6.2/9.3/15.5/20 MPH	9.3/15.5/20 MPH	6.2/9.3/12.4/15.5/20 MPH	6.2/9.3/12.4/15.5/22 MPH
Battey	36V 7.8Ah (280.8Wh)	36V 13Ah (468Wh)	36V 10.4Ah(374.4Wh)	36V, 10.4Ah (374.4Wh)	36V, 10.5Ah (378 Wh)
Sensor	Cadence sensor	Cadence sensor	Cadence sensor	Cadence sensor	Cadence sensor
Pedal Assist	4-Level Speed Assist	5-Level Speed Assist	4-Level Speed Assist	7-Level Speed Assist	7-Level Speed Assist
Suspension	Rear Suspension	Adjustable Front Spring Suspension Fork+Seat Suspension	Adjustable Front Suspension Spring Fork	Adjustable Front Spring Suspension Fork	Advanced Front Suspension Fork
Brake	Front and rear disc brakes	Front and rear disc brakes	Front and rear disc brakes	Front and rear disc brakes	Mechanical brakes
Tire	14*1.95" Pneumatic Tires	26*1.95" Chaoyang Pneumatic Tires	16*2.15" Pneumatic Tires	26" × 1.95" Pneumatic	26" × 1.95" Pneumatic
Saddle	Urban comfort ergonomic seat	Urban comfort ergonomic seat	Urban comfort ergonomic seat	Urban comfort ergonomic seat	Breathable ergonomic sport cushion seat
Headlight	High output integrated LED, adjustable angle	High output integrated LED, adjustable angle	High output integrated LED, adjustable angle	High output integrated LED, adjustable angle	High output integrated LED, adjustable angle
Tail Light	Wiring LED light	Wiring LED light	button battery	button battery	Rear LED
Rear Rack	None	Supported	Supported	Supported	Suppoted
Fenders	Front and rear full coverage	Front and rear full coverage	Front and rear full coverage	Front and rear full coverage	Front and rear full coverage
Charger	42V 1.5Ah	42V 2Ah	42V 2Ah	42V 2Ah	42V 2Ah
Frame	Alloy steel folding frame	Iron frame	Alloy steel folding frame	Iron Frame	Alloy steel frame
Water Resistance	IP65	IP65	IP65	IP65	IP65
Load Capacity	264 lbs (120 kg)	264 lbs (120 kg)	264 lbs (120 kg)	264 lbs (120 kg)	330 lbs (150 kg)
Seat Height	Adjustable	Adjustable	Adjustable	Adjustable	Adjustable
Rider Height	4'9" ~ 6'1" (150cm ~ 185cm)	5'3" ~ 6'3" (160cm ~ 192cm)	5'3" ~ 6'3" (160cm ~ 192cm)	5'3" ~ 6'4" (150cm  ~ 192cm)	5'3" ~ 6'5" (160cm ~ 195cm)
Bike Weight	51.4 lbs (23.2 kg)	59.5lb (27kg)	58.42 lbs (26.5 kg)	61.7 lbs (28 kg)	45.1 lbs (20.5kg)

How to Apply for a Cycle to Work Scheme Bike

Applying for a Cycle to Work Scheme bike is straightforward and designed to make getting a new commuter bike and accessories simple, affordable, and tax-efficient. Here’s a detailed step-by-step guide to help you navigate the process:

1. Check if Your Employer Participates

Before you start, confirm whether your employer is signed up to a Cycle to Work scheme. Many companies run live schemes, and if yours does, you’ll either be provided with an employer code to apply directly or directed to your employee benefits portal.

2. Choose Your Bike and Accessories

Decide on the iScooter model or other eligible bikes and any essential accessories you need. Planning ahead ensures you know the total value you will apply for. Bikes and equipment can often be selected from participating retailers, including online platforms or independent bike shops that support the scheme.

3. Sign Up

With your employer code and total purchase value ready, you can now submit your application. This registers your interest in the scheme and starts the approval process with your employer.

4. Employer Approval

Your employer will review and approve your application. Once approved, you’ll receive a ‘letter of collection’, which confirms your eligibility to purchase your chosen bike and equipment under the scheme.

5. Collect Your Bike and Accessories

Using your letter of collection, you can collect your bike and accessories either in-store or online from participating retailers. Many independent bike shops also accept letters of collection, making it convenient to shop locally.

6. Pay via Salary Sacrifice

Once your scheme begins, the cost of your bike and equipment will be deducted from your gross salary over a set period, typically 12 or 18 months, reducing your Income Tax and National Insurance contributions. This makes cycling more affordable by spreading payments over time.

7. End of Scheme and Ownership

At the end of the scheme, you’ll be contacted to discuss the next steps. You can often enter a zero-cost extended hire arrangement, keeping the bike until HMRC determines its residual value is negligible. Once that happens, you automatically become the rightful owner of your bike and accessories, completing your tax-efficient purchase.

Conclusion

A cycle to work scheme bike provides an affordable, eco-friendly, and health-focused way to commute. With significant tax savings, flexible salary sacrifice payments, and access to high-quality bikes and accessories, it’s an ideal solution for employees looking to boost fitness, reduce commuting costs, and support sustainable transport.

FAQs

Is it worth buying a bike on the cycle to work scheme?

Absolutely. A cycle to work scheme bike offers tax savings, flexible salary sacrifice payments, and access to high-quality bikes like iScooter models, making it a cost-effective, eco-friendly, and healthy commuting option.

Can I get an e-scooter on the cycle to work scheme?

Currently, the scheme primarily covers bikes and cycling equipment.

Who is eligible for the Cycle to Work scheme?

The scheme is open to employees of participating companies. You must have a signed employment contract and your employer must be signed up to a registered Cycle to Work scheme.

Can I sell my bike bought under the Cycle to Work scheme?

Bikes purchased through the scheme are initially owned by the employer. Selling your bike before the end of the scheme or before ownership transfer is not allowed.

Can I buy more than one bike with my voucher?

Generally, vouchers are issued per employee for a single bike and accessories, though some employers may allow multiple applications if they run a larger scheme.

Do I need to Insure my Cycle To Work scheme bike?

Insurance is recommended but not mandatory. Protecting your iScooter or other bike from theft or accidental damage gives peace of mind while commuting or riding for leisure.