Cycle To Work Scheme
Buying your bike, cycle clothing and accessories through the Cycle to Work scheme can save you up to 42% of the cost…that’s a huge saving! Further still, you pay nothing up front and can spread the cost of your new bike and/or kit in equal monthly instalments which is automatically deducted from your salary before income tax and National Insurance contributions.
“The cycle to work scheme is fantastic, saving you money whilst supporting a healthier lifestyle. Fresh air and physical activity are proven to improve health and mental well-being, and of course also helps to reduce our carbon footprint. Convert the time you lose commuting every day into exercise time.” Alistair Brownlee MBE
I Am The Employee - How It Works
5 simple steps…
Step 1: Your employer signs up to a scheme. We currently work with the following:
Step 2: Browse bikezaar.com, select what you want by clicking ‘Add to Quote’ beneath the ‘Add to Basket’ button.
Step 3: We will then send you a personalised quote. A copy will also be sent to the relevant Cycle to Work scheme operator, who will follow up with you/your employer to process your request.
Step 4: You will receive a voucher code for the full value of the bike/kit, which you can use to complete your order on bikezaar.com and arrange home delivery or collection in-store.
Step 5: The cost will be deducted from your monthly salary by your employer.
I Am The Employer - How It Works
4 simple steps…
We have made Cycle to Work as simple as possible to set-up, with minimal admin requirements. Encouraging your employees to cycle is proven to deliver health benefits which in turn should lead to a happier, more productive team with less sick leave.
Step 1: Sign up with one of our partners here:
Step 2: Promote the scheme to your staff.
Step 3: Approve your employee applications.
Step 4: Salary sacrifice starts. Save Employers National Insurance contribution. Happy, healthy, motivated employees.
How does the Cycle to Work scheme work?
The bike and equipment are leased to you by your employer who will deduct the cost from your gross monthly salary (‘salary sacrifice’).
• The deductions are from your gross salary, so it means you pay less income tax and National Insurance. This is how the savings are made and depending on how much tax you pay and which scheme your employer offers you can typically save 32%-42% of the normal purchase price.
• The cost is usually spread over 12 months (or up to 18 months if your employer offers this).
E.g. If your bike/kit cost £1,000, the monthly deductions from your gross pay would be £83.33 i.e. £1,000 divided by 12 months.
As your gross pay has reduced by £1,000 you won’t pay tax or national insurance on that amount. So if you were a basic rate tax payer the real total cost to you would be £680, which is a saving of £320 or 32%.
Higher rate tax payers will save even more.
What does ‘salary sacrifice’ mean?
Salary sacrifice means giving up part of your salary in exchange for a benefit, in this case the hire from your employer of a bicycle and /or cycling safety accessories. Salary sacrifice deductions are taken from your gross salary meaning you pay less tax and NI. This saves a basic tax payer approximately 32% on the cost of the equipment and a higher rate tax payer, approximately 42%.
Exact savings will vary depending on personal circumstances and the specific way in which your employer operates the scheme.
What cycling equipment can I get?
Adult bikes and a wide range of cycling equipment and clothing. You can select cycling equipment with a bike, or if you are already have a bike and are cycling to work you can choose to get equipment only, with all the same tax savings.
A wide range of cycling equipment can be included and scheme guidelines (as set by HMRC) advise a ‘common sense approach’ should be taken when considering items to include.
As a guide any items which help make you safer, keep your bike safe, or help with your commute can be included, as follows:
Clothing & accessories:
Please note HMRC currently excludes the following items from the scheme:
To check if a particular item can be included, contact your scheme provider, or include it in your quote request and we will confirm whether it can be included.
Do I have to use the bike/kit to cycle to work?
Yes, but you are not restricted to using your bike/kit just for your commute, you can also use it for your leisure/other cycling.
Can I choose cycling equipment only, without getting a bike?
Yes, if you are already cycling you can get cycling equipment without getting a bike. The equipment must still be within the guidelines above.
Is there a minimum and maximum amount?
The minimum is £100 and the maximum value you can apply for is £1000.
(Some employers are able to offer a higher maximum limit with a Consumer Credit Authority. Please check with your employer or scheme provider).
Can I buy equipment which is on sale, special offer or using Price Match?
Yes you can - which will give you even better savings through the scheme.
Can I get more than one bike?
You can get two bikes - for example, if you cannot take your bike on the train but you need a bike at each end of your journey. Please note the scheme does not allow you to obtain a bike for someone else.
Do I need to have chosen a bike and equipment before I apply?
No, it depends on which scheme provider your employer works with.
The main thing is to decide how much you want to spend as this will be the amount of your salary sacrifice. The price of your certificate cannot be changed. All certificates must be redeemed in full and they are for a one time use. You need to exchange the certificate for your selected equipment within 3 months from date of issue.
I live too far to cycle to work, can I still get a bike on the scheme?
Yes - you can still get a bike/kit through the scheme if you intend to cycle any part of your journey to/from work. You do not have to keep a mileage log but generally at least 50% of the bike’s usage should be for commuting purposes. You can also use the bike for leisure cycling.
Who is responsible for maintaining the bike?
It is your responsibility to maintain the bike but most of bikeZaar’s retailers offer a free bike check-up after the first few weeks.
Is the bike insured through my employer?
No. We strongly recommend that you insure the bike as your employer will still deduct the salary sacrifice payments even if the bike is stolen. You can choose from a range of specialist cycle insurers here.
When do I start paying?
Your monthly salary deductions will normally begin in the next pay period after you have joined the scheme. Your employer will start the deductions regardless of whether you have taken delivery of the bike or not. Check your pay slip to confirm salary sacrifice is underway.
Who does the equipment belong to?
The bike and equipment are leased to you by your employer who will deduct monthly ‘salary sacrifice’ amounts from your gross salary to cover the value. At the end of this period, your employer may transfer title of the goods or extend the hire agreement for a longer period. Check with your employer to confirm their transfer of ownership policy.
Why choose us?
bikeZaar works with a nationwide network of specialist independent bike shops, providing you with the best possible support locally.
We offer the greatest selection of brands and depth of availability online.
Best price guarantee – find a better price and we aim to match or beat that price.