Cyclescheme FAQs

All the most common questions answered, and a few less common ones too.

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How does Cyclescheme work?

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Getting started with Cyclescheme

Looking to learn more about Cycle to Work schemes? Find out just how easy it is to save 25-39% on a new bike with the UK's leading Cycle to Work provider.

Tax is complicated; Cyclescheme is not. You choose a bike, hire it for an agreed length of time, then snap it up for a fraction of it's original value. It's like a year-round sale, with interest free credit available in over 2,000 retailers nationwide. 

We’ve worked hard to provide a transparent and easy to understand process. There are just three steps to go through to get a bike for work through Cyclescheme.


1. Pick Your Package & Apply

Select a package that suits your needs. 

Just a bike A bike and accessories Just accessories
Just a bike A bike and accessories Just accessories

 

Use our calculator to check how much you can save.

Once you have a budget in mind use our retailer finder to select a local store or online retailer to shop with. If you want, you can decide on your retailer after you've applied. If you're very price conscious check out our offers.

Remember, if you’re visiting a retailer they can give you expert one-to-one advice; if you shop online, do your research, check reviews and make sure you get your bike sizing correct. 

2. Get Your Gear

This couldn’t be easier. If your employer is signed up with Cyclescheme, they’ll have a unique employer code to use when you apply via cyclescheme.co.uk (our homepage gives you the option to click on 'I'm an employee', once you've done this you can enter your employer code and apply). If your employer isn’t signed up, they can join for free in just a few clicks. You can invite them to join the scheme or point them to our employer registration process.

When you 'Apply', you’ll be guided through a simple form that asks for your work details (inc. payroll number), contact information, and the value of the Cyclescheme Certificate you’re applying for. If you've agreed to get a your bike and/or accessories from a specific retailer you'll be able to link your request to them, but you can also decide on the retailer you want to use after you've applied by 'Deciding later'.

Your employer will review your application and pay for your Cyclescheme package. We'll then instantaneously send you an eCertificate which you can exchange for your gear in-store or online. 

3. Choose an ownership option

When your Hire Agreement and salary sacrifice ends, you can keep your Cyclescheme package by paying a small ownership fee. There are 3 options, the price of our recommended option 'Own it later' is built into all our marketing communications and calculators and should not come as a surprise.  

Own it later (recommended option)

For a Cyclescheme package under £500, you'll pay 3% of the original value; for a package over £500, it's 7% – so a maximum of £70 on a £1,000 package. The bike remains ‘hired’ for a further 36 months, but with no more monthly payments. Ownership can then officially be transferred to you at no extra cost.

This method of transferring ownership is why you save a minimum of 25% and a maximum of 39% (some may save more due to deals or offers). 

Own it now 

The 'Own it now' fee allows you to own the bike straight away, but it costs more. For a Cyclescheme package under £500, you'll pay 18% of the original value; for a package over £500, it's 25% – so a maximum of £250 on a £1,000 package. The bike is officially transferred to you at this point and there are no others costs.

There is little material benefit to choosing this option and we recommend that all Cycleschemers opt to keep their bikes by choosing the 'Own it later' fee

Return the bike

If for any reason you do not want the bike at the end of the Hire Period you can return it to Cyclescheme and incur no additional costs. 

For a personalised savings figure, visit our calculator and enter your details. 

How are the savings made?

Cyclescheme operates as a Salary Sacrifice benefit. This means that you agree to give up part of your salary in exchange for a benefit – in this instance a bike and/or accessories.  The Salary Sacrifice is taken from your gross salary (before tax) which means that you will pay less Income Tax and National insurance.

Below is a Payslip example, which illustrates how the reduction in gross salary results in a reduction in Income Tax and National Insurance payable.

Below is an example of how savings are made during the Hire Period for basic and higher rate taxpayers on packages hired over a 12-month period.

To view Cycleschemes savings calculator, which demonstrates what savings you could make during the Hire Period, please visit our 'Shop Now' page.

At the end of your Hire Period, there is an additional transaction to secure the bike.  To see how this process works, please visit the FAQ section titled "The End of Hire Process" by clicking here.

Can I participate in the scheme?

To participate in the scheme you must receive your salary via the PAYE (Pay As You Earn) system.

If you enter into a salary sacrifice arrangement, your new level of earnings must remain above the National Living Wage (NLW)/National Minimum Wage (NMW). If you are paid on or near NLW/NMW, your employer will be able to offer an alternative means of applying to participate in the scheme and you will still be able to benefit through reduced cost of hire.

For more information please visit our savings calculator HERE and input your salary information to find out the value of Certificate you can apply for. If, according to the calculator, you are unable to apply for a Certificate due to NLW/NMW constraints, please contact your employer or Cyclescheme to find out how you can still benefit from scheme participation.

It is worth noting that there is no credit check if you wish to participate, and if you are under 18 you can join the scheme if your guardian signs a guarantor agreement.

Does the Cyclescheme Package have to be used for commuting?

You should use the bike and/or accessories mainly for commuting to and, if relevant, between work places (at least 50% of the equipment's use should be for work purposes). However, it can also be used for non-work purposes and there is no need for you to keep a log of your journeys.

Please note that you are unable to claim business mileage allowance when using a bike that is being hired to you by your employer.

Who actually owns the Cyclescheme Package?

The bike and/or accessories remain the property of the employer throughout the hire period, unless the employer uses a finance company to fund the scheme; in this case the finance company or funding bank will own the equipment.

Who is responsible for maintenance of the bike?

It is your responsibility to maintain the bike you obtain through the scheme. Cyclescheme Retailers will be able to offer specific advice about maintenance and servicing of bikes depending on how they are used and stores offer a free first service (usually 6 weeks after collecting the bike). 

Should I insure the bike?

Cyclescheme recommends that you insure the bike.  Most cycle-specific insurance not only provides cover for the cost of theft replacement, but also provides personal and third party medical insurance cover and, in some cases, a roadside recovery service in the event of breakdowns.  By insuring the bike, you can maintain your savings by avoiding hefty replacement costs in the event of theft, and continue to enjoy the full tax exemption for the rest of the hire period. 

Cyclescheme has partnered with Cycleguard to bring you an insurance product that will support you and your bike throughout your Cyclescheme agreement and beyond.

For further information on cycle-specific insurance please visit Cycleguard on www.cycleguard.co.uk/cs15 (Cyclescheme participants can obtain a fantastic 15% discount on Insurance and Roadside Recovery).

What happens if the bike is stolen?

If your bike is stolen or damaged beyond repair, as long as you replace the bike and continue to use it mainly for commuting purposes, the employer can continue to take the salary sacrifice reductions from gross salary.  This means that you can still take advantage of the Income Tax and National Insurance Contribution (NIC) savings.

If the bike is stolen before it has been paid for, and it is not replaced, this unfortunately constitutes the end of your hire agreement and any outstanding salary sacrifice repayments will be taken from your net pay.  For this reason, Cyclescheme strongly recommends that scheme participants insure the bicycle and safety equipment as soon as they collect it from the store. 

If your bike has been stolen, please email info@cyclescheme.co.uk with the following information:

  • Date of the theft
  • Police Station Reported to
  • Crime Reference number
  • Is the bike insured?
  • Has your employer been notified?
  • Are any outstanding Salary Sacrifice reductions being taken from Net salary?

If your bike has been stolen and you have benefited from tax and national insurance savings you are still likely to be liable for your ownership (End of Hire) payment. This is why we strongly recommend you insure your bike

Please note: Cyclescheme offers auto-enrollment to Bike Register as one of our active benefits.  The purpose of Bike Register is to assist with the recovery of your bike if it is stolen.  For further information please see our active benefits page by clicking here.

What happens if I leave employment? 

If you leave employment or are made redundant during the hire period any outstanding Salary Sacrifice repayments will be taken from your final salary, from net rather than gross pay i.e. without any further tax exemptions.

For example, if you are on a 12 month scheme, and have had 4 Salary Sacrifice repayments taken from gross salary prior to leaving employment, the remaining 8 should be taken from your final net salary.

If applicable, you may then be offered ownership of the equipment in the normal way (please refer to ‘End of Hire').

Please note: It is not possible to transfer the agreement from one employer to another.

Which Retailers are registered with Cyclescheme?

Cyclescheme’s network of over 2000 Retailers provides access to over 500 different cycling brands, including direct access to the UK’s most popular bike manufacturers.  Many of our Retailers provide electric bikes, folding bikes and other specialist cycles. 

To access our Retailer finder (from which you can search for Retailers in your area, further afield or online) please click here.  The retailer finder will allow you to search for either physical shops that you can visit, or online retailers from which you can get your Cyclescheme Package.

I haven’t saved anything during my Hire Agreement

Cyclescheme saves you money by reducing the amount of Income Tax and National Insurance contributions you pay.

During your Hire Agreement, your employer takes their repayments directly from your Gross Salary. Your Gross Salary is your starting amount – the figure before any other deductions, like tax are taken. Your employer taking their repayment here causes a reduction in your Taxable Income.

 

Salary sacrifice infographic

 

You will be able to see the cost of the bike in the 'deductions' section of your payslip; the amount shown will not include your saving. The figure on your payslip will reflect the total cost of the bike divided by the number of repayments you've agreed to as part of your hire agreement.

Your Taxable Income is where your Income Tax and National Insurance contributions are taken from. These taxes are both fixed percentages, rather than fixed amounts. So if your amount of Taxable Income gets smaller, these payments will too. This means you pay less tax and National Insurance contributions than normal during this time. Tally up the reduction here and you’ll see a significant saving of between 32 - 42%.

Once you’ve paid our recommended ownership option (either 3 or 7% of your Cyclescheme packages initial value), your savings tend to be between 25 – 39% of the cost of your cycle commuting gear. This is why we describe Cyclescheme as being like a year-round sale with interest-free credit!


Can't find what you are looking for?

If you are unable to find the answer to your question, please get in touch with us using the contact details which can be found here.

Ready to roll? 

Get started by heading over to the calculator to check your savings or use the Retailer finder to help you decide where you want to shop. Employer not signed up? Invite them.

Savings calculator Retailer finder Invite employer

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Choosing A Cyclescheme Package

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Do I need to get a bike with my Certificate?

No! With Cyclescheme you choose the gear you need to cycle commute. Check out the 3 possible Cyclescheme packages below:

  • Just a bike - your no fuss option. Great if you already have a lock, lights and helmet to hand.
  • A bike and accessories - the full works; perfect for new cyclists or those looking for a serious update.
  • Just accessories - ideal for existing cycle commuters. Refresh your accessories - no new bike required.

Once you’ve chosen your preferred package - apply for your Cyclescheme Certificate.

Yes. Your Cyclescheme application can include accessories without the need to include a bike in your request. 

You will then be able to enter the exact equipment/accessories you wish to get through the scheme.

I already own a bike; can I obtain just accessories through Cyclescheme?

Yes. Your Cyclescheme application can include accessories without the need to include a bike in your request. 

You will then be able to enter the exact equipment/accessories you wish to get through the scheme.

I already have a Hire Agreement in place; can I get another Certificate for accessories only?

Unfortunately if you are partway through your initial hire period, you are unable to place another Certificate request until the current one has ended.  If you are in an ‘Extended Use Agreement’ with Cyclescheme (as part of the End of Hire Process), you are able to request another Certificate.

What accessories can I get?

With Cyclescheme you can get any accessory that keeps your bike wheels turnings, like:

  • Safety accessories - that help keep you and your bike safe; helmets, bike lights, reflectors, mirrors, bells, locks...
  • Essential accessories - necessary to cycle commute; clothing and shoes, mudguards, panniers, backpacks, child safety seats…
  • Components and parts - that keep your bike in great shape; pumps, puncture repair kits, cycle tool kits, tyre sealant, groupsets, wheels, cranksets, cassettes...

In fact - you can get almost any cycle accessory with Cyclescheme! Shop online or in-store at over 2,000 Cyclescheme retailers and discover the accessories that can complement your cycle commute.

Please note - bike racks (for cars), cameras and GPS computers are not allowed under the Cycle to Work scheme.

Can I add my own funds towards the value of my package?

The maximum Certificate value available via the scheme for the vast majority of participants is £1,000 inc. VAT (unless your employer has their own Consumer Credit Authorisation).
 
As a general rule, if the total value of the equipment you require for your cycle commute is in excess of your Employer’s maximum limit, you may be able to add your own funds to the Certificate value. 
 
However, as there are a handful of employers that don't allow this practice it is advisable to check with your employer, or our Contact Centre.
 
If you choose to add your own funds, you need to remember that you will not make a saving on anything over the maximum Certificate value available via your Employer’s scheme and all Equipment will remain the property of your Employer during the Hire Agreement.

Can I get more than 1 bike?

Yes. As long as both the bikes are for you and the primary use of both the bikes is commuting. 

Lots of people choose a hybrid for their local commute and a folding bike for trips to the city. Others find it beneficial to have a summer and winter bike.

You must get both bikes from the same retailer. We do not have a facility to enable you to get two bikes on 1 Certificate but from 2 different retailers. 


Can't find what you are looking for?

If you are unable to find the answer to your question, please get in touch with us using the contact details which can be found here.

Ready to roll? 

Get started by heading over to the calculator to check your savings or use the Retailer finder to help you decide where you want to shop. Employer not signed up? Invite them.

Savings calculator Retailer finder Invite employer

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My Cyclescheme request

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How do I request a Certificate?

Decide if you want to get a bike from a local Retailer (In-store) or from a range of leading online Retailers (online).

 

In-store

Visit the retailer and choose the bike and/or accessories you want to get.  The Retailer will provide you with a quote listing all of your selected equipment.

Online

Visit the website of your chosen retailer and select the items you want to get.

 

Alternatively, if you already know what you want, or haven’t got time to visit a store now, you can simply nominate a value that can be redeemed at a Retailer of your choice.

  1. Go to the Cyclescheme website and enter your employer code (if you are unsure what an employer code is, please see the FAQ "What is an employer code").
  2. You will then be taken to the ‘Shop Now’ page, where you can double-check your savings. When you are ready to submit your request, click ‘Apply’.
  3. You will now be asked to enter your details, your company details, and importantly, the Package details, including a breakdown of the bike and accessory values.  
  4. If you have elected not to nominate a Retailer at this stage, you will simply be asked to enter a total value for your Certificate; there is no need to specify the items you will be getting at this point.
  5. The next stage is for your employer to approve the request.  You will be sent an email so that you can create login details for your MyCyclescheme account that allows you to track the progress of your Certificate as well as access additional offers and benefits.

Please note the above is a standard process and may differ for employers who use a Benefits Provider.

What is my employer code?

Your employer code will be 4-6 characters long and will contain numbers and/or letters.

You may be given your employer code in 1 of two formats, either the code itself (4-6 digits long), or forming part of a web address (www.cyclescheme.co.uk/??????).

If posters are displayed at your place of work the employer code should be printed at the bottom of these, but if you do not know the employer code please email info@cyclescheme.co.uk with the subject line “Employer code”.  Please ensure that the email clearly states the name of the company you work for.

How do I login to MyCyclescheme?

When you request a Certificate you provide us with your email address.  This is the primary method in which we contact you, and is also used to create your MyCyclescheme account.  Once a Certificate request has been entered, you will automatically receive an email inviting you to set a password for your account.

To login, click “Sign in to MyCyclescheme” (in the top-right of our website), then enter your email address and password.  If you do not have, or cannot remember your password, please use the link at the bottom of the login page to request a new password. 

Where’s my Certificate?

To track the progress of your Certificate request you can log in to your MyCyclescheme account at https://www.cyclescheme.co.uk/login.  To login to your account you will need to enter the email address you used when you requested the certificate.  

How do I change my contact details?

To change any of the personal details on your account, please login to your MyCyclescheme account (please see “How to login to MyCyclescheme for further information) . 

Once logged in, click on the tab titled “My Account”. 

From here you can amend any of your details and then click “Update my Account” to confirm.

Which Retailers are registered with Cyclescheme?

Cyclescheme’s network of over 2000 Retailers provides access to over 500 different cycling brands, including direct access to the UK’s most popular bike manufacturers.  Many of our Retailers provide electric bikes, folding bikes and other specialist cycles. 

To access our Retailer finder (from which you can search for Retailers in your area, further afield or online) please click here.  The retailer finder will allow you to search for either physical shops that you can visit, or online retailers from which you can get your Cyclescheme Package.

Can I order my Cyclescheme Package online?

Yes. Cyclescheme works with over 2,000 Retailers and many of them offer an online service. Please visit our Retailer Finder to search either for a physical shop, or an online retailer that you would like to use.

Shopping in-store is ideal if you are not sure what you need (or in what size), or if you want the face-to-face interaction with industry experts (which can be invaluable for new cyclists) to ensure the package meets your specific requirements.  Shopping in-store means you can also take advantage as other benefits such as a free 6-week service.

If you know exactly what you want and are confident with purchasing cycling equipment, shopping online will offer you the convenience of redeeming your Certificate without having to leave your house.  Your Cyclescheme Package will then be delivered to your chosen address. 

What is a payroll number?

This is a unique employee number issued to you by your employer. The best place to find this information is on your payslip. Otherwise, contact your HR department or manager.


Can't find what you are looking for?

If you are unable to find the answer to your question, please get in touch with us using the contact details which can be found here.

Ready to roll? 

Get started by heading over to the calculator to check your savings or use the Retailer finder to help you decide where you want to shop. Employer not signed up? Invite them.

Savings calculator Retailer finder Invite employer

Go to top


 

Ownership Options / End Of Hire Process

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Cyclescheme's end of hire process explained.

What happens at the end of the Hire Period?

At the end of your hire period you must choose an ownership option and, if applicable, make another payment to take ownership of your Cyclescheme Package. Without this payment HMRC would class the agreement as hire purchase, rather than hire, and as a the tax exemption would not be available.

If Cyclescheme is handling your ownership options, you will be given the following 3 options at the end of your hire period:

  1. Own it now - Take ownership of your package by paying Cyclescheme the market value (e.g. for a one year old package this would be 18% or 25%* of the Certificate value in accordance with HMRC requirements).
  2. Own it later – Enter into an Extended Use Agreement with Cyclescheme. You pay a small refundable deposit (either 3% or 7% of your certificate value*) and continue to use the equipment for 3 years. No further regular salary payments are required during this time. At the end of this period, Cyclescheme refunds the deposit if you do not wish to keep the package. No further action or payment is required if you wish to keep the equipment.
  3. Return - Return the package to Cyclescheme at your own cost.

Cyclescheme recommends option 2. This allows you to participate in another scheme during this period, as the agreement is directly between yourself and Cyclescheme - your employer does nothing more.

* The lower figure is for a certificate value of less than £500 and the higher one for a certificate value of £500 or more. These figures include VAT.

To view a guide to Cyclescheme’s easy End of Hire process please click here

What happens at the end of the Extended Use Agreement?

 At the end of your Extended Use Agreement, Cyclescheme will contact you and ask if you would like to keep your Cyclescheme package and become the legal owner. If you do, Cyclescheme will retain your 3% or 7% fee and no further payment is required.

How do I make payment?

The Ownership Fee (either the Market Value or Extended Use Agreement) is a separate transaction to the Hire Period, and as such cannot be taken from your salary.

Cyclescheme will contact you by email or letter at the end of your Hire Period. This will contain a link to a secure payment portal from which you can select your preferred ownership option and make any payment required (alternatively you can pay by cheque or by BACS).

How is the Ownership payment calculated?

HMRC has published the following ‘Valuation Table’ to be used to calculate the market value of bikes and accessories at the end of the Hire Period.

Cyclescheme has chosen the best option for the employee. The market value is calculated as below:

Figure to which market value is applied = (Equipment value - Helmet value) - VAT

The appropriate Valuation Table percentage is then applied to this amount, and VAT is added back on.

Here’s an example based on an equipment value of £550 including a £30 Helmet:

Figure to which market value is applied = (£550 - £30) = £520.00 - VAT = £433.34

£433.34 is less than £500, therefore;

12 month valuation percentage = 18%

4 year valuation percentage = 3%

4 year valuation = 433.34 * 3% = £13.00 + VAT = £15.60

Why is the Ownership process required?

In order to benefit from Income Tax and National Insurance Contributions (NIC) savings, the Hire Agreement you enter into with your employer must be for the hire of the equipment only. If the agreement allows for ownership to pass to you automatically, this would result in the agreement being classed as a Hire Purchase Agreement and a tax exemption would not be available.

To avoid your Cyclescheme package becoming taxable; any offer of ownership must be conducted as a separate transaction at the end of your hire period.

Cyclescheme can provide employers with a solution that maximises participants savings, to view this in more detail, please see "What happens at the end of the Hire Period"


Can't find what you are looking for?

If you are unable to find the answer to your question, please get in touch with us using the contact details which can be found here.

Ready to roll? 

Get started by heading over to the calculator to check your savings or use the Retailer finder to help you decide where you want to shop. Employer not signed up? Invite them.

Savings calculator Retailer finder Invite employer

Go to top