The Cyclescheme 4 step process
... to saving at least 25% on a new bike for work!
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 four steps to go through to get a bike for work through Cyclescheme.
1. Choose your Cyclescheme package
What bike and equipment do you want? Consider your commute. How far is it? What route will you take? Be honest with yourself. What are your priorities? What accessories might you need? These are all questions you should ask yourself as you prepare to revolutionise your commute!
Decide on the package that suits you:
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. Head to our Retailers page to choose your store or online retailer and get planning.
2. Submit your application
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. If your employer isn’t signed up, they can join for free in just a few clicks. Point them here.
On the application page, you’ll be guided through a simple form that asks for your work details, contact information, and the value of the Cyclescheme Certificate you're applying for. Hit 'submit', and your employer will receive a copy of your Hire Agreement.
3. Get your Cyclescheme package
With your application approved and paid for (by your employer), it's time to exchange your Cyclescheme Certificate for your Cyclescheme package. Contact your retailer and arrange a time to pop in and pick up your equipment. If you shopped online, your package can be delivered to an address that suits you, or you can opt for the click-and-collect service that some retailers offer
Your salary sacrifice and Hire Agreement now kicks in. For the next 12 months, you'll pay a set amount from your salary each month in exchange for the hire of your Cyclescheme package from your employer.
The deduction is made from your gross salary, so you make income tax and national insurance savings (32% standard rate, 42% higher rate).
4. Transfer ownership
When the Hire Agreement and salary sacrifice ends, you can keep your Cyclescheme Package by making a final payment.
It's a small amount, however. 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 transferred to you at no extra cost.
The transfer of ownership payment is why you save a minimum of 25% rather than a minimum of 32%. Many Cyclescheme participants will save more.For a personalised savings figure, visit our calculator and enter your details.