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The Cycle to Work Scheme

What and how it works

A Cycle to Work Scheme, sometimes called a ride to work scheme, helps employees save money on bikes and cycling equipment through salary sacrifice.

At Green Commute Initiative, we give employees access to savings of up to 47% on bikes and accessories, with no employee fees and flexible options for a wide range of bikes, ebikes and specialist cycles.

Whether you’re looking to reduce commuting costs, improve your wellbeing or make cycling part of your everyday routine, the scheme makes getting a bike more affordable.

Why choose a bike through the Cycle to Work Scheme?

Everyone has their own reason for cycling to work, but the benefits often extend far beyond simply getting from A to B.

  • A healthier you – both in mind and body
  • Reaching your fitness goals more quickly
  • A happier you as you become healthier and fitter
  • Enjoying your commute to work so you arrive on time and feeling energised
  • Becoming more effective in your work
  • Saving money on fuel and car parking costs

As well as personally benefitting from cycling from work, there are environmental benefits including less congestion and less pollution through lower emissions and reduced noise.

All employees can benefit!

Near the minimum wage

You cannot use salary sacrifice if it will take you below minimum wage.

We have a number of solutions which are:

  • Our ‘Everyone Cycle’ scheme
  • Annual subscription to a bike share scheme
  • Employers can provide a pool of ebikes

If a salary sacrifice would take you below the minimum wage and your employer does not offer one of these schemes, please ask them to talk to us.

Living with disabilities

Employees who are disabled or have limited mobility can get specialist or adapted cycles through the scheme.

What bikes and equipment can I get on the scheme?

You can get anything defined as a bicycle under the Road Traffic Act. So that’s a yes to conventional bikes, electric bikes, trikes, cargo bikes, specialist cycles etc. but a no to scooters, mopeds, motorbikes or anything that just isn’t a bicycle.

The bike must be from a reputable brand, approved for the UK and, if they are electric, comply with the government’s rules on ebikes. Your local bike shop can help you out on this.

Accessories and safety equipment can be included in your package and this includes racks, child seats, locks, lights, helmets, and clothing. Don’t go too mad though – HMRC suggest a common-sense approach.

Whilst you can tailor your package, the final decision as to whether it’s suitable for the scheme is down to Green Commute Initiative.

Bike ownership explained

Cycle to Work is a Government-backed scheme and follows HMRC guidelines.

Initially, the bike is hired through the scheme and then made available through an extended loan period. At the end of this period, ownership can usually be transferred for a nominal fee.

Unlike some providers, Green Commute Initiative does not charge a 7% end-of-scheme fee, helping employees maximise their savings.

Employees may also have the option to take ownership earlier and pay any applicable tax due.

In practical terms, the bike and accessories are yours to use from day one, and employees can participate in additional Green Commute Initiative schemes at any time.

Getting a bike through Green Commute Initiative

Your employer does not have to be registered with us. Whilst employers can register, and there is some benefit to them in doing so, it is not required. Registration makes no difference to what you can get as an employee and how you pay for it.

Here is a summary of the process:

1

The employee gets a quote for their chosen bike and/or safety accessories from one of our many registered bike shops and manufacturers.

2

The employee completes a form on our website which generates a proforma invoice.

3

The employer pays us the full value.

4

The employer implements a salary sacrifice through payroll over a period agreed with the employee. You don’t pay tax or national insurance on the repayment amount, and thus you save money. The duration of the salary sacrifice is independent of the time that the employee will have possession of the bike.

5

GCI sends the employee a voucher to take to the bike shop to claim their bike/accessories.

6

GCI manages all the end of scheme arrangements directly with the employee.

For the detailed process please see our how it works page.

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FAQs

What is the Cycle to Work Scheme?

The Cycle to Work Scheme, sometimes called a ride to work scheme, is a salary sacrifice employee benefit that allows employees to save money on bikes and cycling equipment through payroll deductions.

How much can I save?

Savings vary depending on salary, tax band and the value of the bike and accessories selected.

Can I get an ebike through the scheme?

Yes. Ebikes are generally eligible provided they comply with UK regulations.

Can I include accessories?

Yes. There is a minimum order value of £100 and you can include items such as helmets, bells, lights, child safety seats, clothing, servicing, tools and spares. You cannot include bike computers with or without GPS or waterproof clothing that is not reflective.

Can I use the scheme if I’m close to the National Minimum Wage?

Alternative options may be available, including Everyone Cycle and bike-share schemes. Please see the flyer for more information.

Can I get an adapted cycle?

Yes. Specialist and adapted cycles may be available for employees with disabilities or mobility needs.

When do I own the bike?

To maximise savings in line with HMRC guidance, Green Commute Initiative own the bike through the initial hire and extended loan period. At the end of this period, ownership can usually be transferred for a nominal £1 fee. Employees also have the option to take ownership earlier and pay any applicable tax due.

Does my employer need to be registered?

No. Employers can use Green Commute Initiative without registering, although registration offers additional administrative benefits.