{"id":1393,"date":"2026-07-07T10:06:02","date_gmt":"2026-07-07T09:06:02","guid":{"rendered":"https:\/\/blog.citrus-lime.com\/paul\/?p=1393"},"modified":"2026-07-07T10:18:15","modified_gmt":"2026-07-07T09:18:15","slug":"cycle-to-work-scheme-explained-how-to-save-on-a-new-bike","status":"publish","type":"post","link":"https:\/\/blog.citrus-lime.com\/paul\/cycle-to-work-scheme-explained-how-to-save-on-a-new-bike\/","title":{"rendered":"Cycle to Work Scheme Explained: How to Save on a New Bike"},"content":{"rendered":"\t\t
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A new bike, spread over monthly payments, with up to 42% knocked off the price. That is the Cycle to Work scheme, and if your employer offers it, it is one of the cheapest ways to buy a quality bike or e-bike in the UK.<\/span><\/p>

This guide explains how it works, how much you actually save, who qualifies and how to use it at Pauls Cycles. No jargon, just the facts you need to make the most of it.<\/span><\/b><\/p>

What is the Cycle to Work scheme?<\/b><\/h4>

\"\"Cycle to Work is a government-backed benefit that lets you get a new bike and cycling kit through your employer and pay for it out of your gross salary, before tax and National Insurance are taken off. Because you never pay tax or NI on that money, the bike effectively costs you a lot less.<\/span><\/p>

It works as a salary sacrifice arrangement. Your employer (usually through a scheme provider) buys the bike, you hire it from them over an agreed period, normally 12 months, and the cost comes off your pay in monthly instalments. At the end, you keep the bike.<\/span><\/p>

How much can you actually save?<\/b><\/h3>

Your saving depends on your tax band, because you are saving the income tax and National Insurance you would otherwise have paid on that slice of salary.<\/span><\/p>

Your tax band<\/b><\/p><\/td>

You save roughly<\/b><\/p><\/td><\/tr>

Basic rate (20% taxpayer)<\/span><\/p><\/td>

around 28%<\/span><\/p><\/td><\/tr>

Higher rate (40% taxpayer)<\/span><\/p><\/td>

around 42%<\/span><\/p><\/td><\/tr><\/tbody><\/table>

A worked example on a \u00a31,000 bike:<\/span><\/p>