Cyclescheme 

We’ve teamed up with Cyclescheme to help you make big savings on a tax-free bike for work. So if you’d like to make your commute better for you, the environment and your pocket, read on!

How can I buy an bike for less?

For employees who use a bike to get to and from work, the government have designed a way to enable commuters to obtain a tax-free bike from their employer.

The employer purchases the bike and then loans it to the employee, who compensates the employer through monthly deductions from his/her salary. No VAT, Income tax or NI is payable on the bike so the savings are substantial.*

At the end of the period normally 1 year to 18 months the second-hand bike is “disposed of” usually to the employee, if required, for a nominal value.

What are the benefits?

• Save up to 50%* on the cost of a bike and safety equipment
• Pay monthly and save VAT, National Insurance and Income tax
• Get any make or model of bike
• Save your employer money as well through NI savings
• Our secure extranet website means minimal hassle

How does it work?

This is an example of how a higher rate tax payer can save 50% on a £1000 bike package hired over a 12 month period:

• Bike package retail price (inc VAT) £1000
• VAT saved £148.94
• Income tax and NI saved £348.96
• Monthly repayments £41.84
• Total bike package price £502.10

What do I do next?

• Talk to your employer and get them to agree to use Cyclescheme
• Choose your bike. We issue you with a quote
• You enter a quote on a secure extranet site
• Your employer authorises the quote for you
• Cyclescheme issue a secure voucher which you can use to collect your new bike!