What is the Cycle to Work Scheme?
The Cycle to Work Scheme is a government-funded initiative introduced in 1999 with the aim of encouraging a healthier and more environmentally-friendly UK population. The scheme allows consumers to purchase bikes and cycling equipment tax-free at participating retailers. Purchasers pay off the value of the bike over a year (extension periods are available) and the claimed savings on a bike are up to 42% of the overall value depending on the tax bracket you sit in.
Your employer will need to be signed-up to the system (from our own past experience, don’t let them drag their feet on this – 40,000 business are signed up in the UK after all) and you’ll need to request a certificate from them (usually the HR or accounts departments) and take it to the relevant bike retailer.
What’s the maximum I can spend on a bike through the Cycle to Work Scheme?
The maximum value of the bike was £1,000 but there’s now no cap and you can now save on the exact bike, components and accessories you need to cycle to work, whatever its cost (but it’s a no to to turbo trainers and GPS systems!), providing your employer has agreed to lift the cap. So far 90% of employers have decided to do this. Find out more at www.cyclescheme.co.uk