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How to apply for cycle to work scheme

Green Commute Initiative helps employees spread the cost of bikes and cycling equipment through the Government’s Cycle to Work scheme.

The scheme works through salary sacrifice, allowing employees to make repayments through payroll while benefiting from tax and National Insurance savings.

The process is designed to make getting a bike simple, flexible and accessible, whether you’re purchasing through a bike shop or a manufacturer.

Before You Apply For A Cycle to Work Scheme

Before starting your application, you’ll need to know exactly what bike and equipment you want to purchase.

Cycle to Work applications are linked to a specific bike, retailer and total value, so it’s important to have everything ready before applying.

You’ll normally need to know:

  • Your chosen bike
  • Any accessories you’d like included
  • The retailer or manufacturer
  • The total cost
  • Your preferred salary sacrifice period

Accessories can often include helmets, locks, lights and other cycling safety equipment.

If your employer has already registered with Green Commute Initative, you will be provided with a Corporate GCI code to access your tailored  application page.

 

Step 1: Choose Your Bike and Equipment

Employees can choose from a wide network of registered bike shops and manufacturers across the UK. Please use our registered bike shop page to find a provider, with whom you can enjoy savings of 28-47%.

Bikes and accessories are usually:

  • purchased in-store
  • ordered online
  • reserved for collection

When buying through a bike shop, employees may receive a quote that locks in the bike price for a limited period while the application is processed. Some retailers may request a refundable deposit during this stage.

When purchasing directly from a manufacturer, employees may receive a reference number allowing the bike to be reserved online for a set period.

If you’re unsure which retailer to use, or would prefer flexibility when choosing your purchase, you may be able to apply for a Commuter Wallet (Please check if this applies to your Employer). This allows approved funds to be used across participating retailers.

 

Step 2: Submit Your Application

Once you’ve chosen your bike and equipment, you can complete your application through the Green Commute Initiative portal.

Applications include:

  • the bike details
  • accessories
  • retailer or manufacturer
  • total value
  • salary sacrifice period

Your employer will then review and approve the application.

 

Step 3: Sign Your Agreements

Once approved, the required agreements are sent electronically for signature.

This typically includes:

  • the Salary Sacrifice Agreement
  • the Hire Agreement

If your employer already uses a benefits plateform, they may issue their own Salary Sacrifice agreements.

Once agreements are signed, Green Commute Initiative invoices the employer according to the agreed arrangement.

Where a Commuter Wallet is used, employees can then access voucher funds through the Green Commute Initiative portal.

 

Step 4: Receive Your Voucher or Collection Details

Once your application has been processed, a Collection Voucher or approval confirmation will be emailed to you.

If purchasing online, voucher codes can normally be redeemed directly at checkout with participating retailers.

Where deposits were paid during the reservation, these are usually refunded once the voucher has been redeemed.

Bike shops then redeem the voucher through the Green Commute Initiative portal.

 

Step 5: Collect Your Bike

When buying in-store, simply collect your bike and equipment using your voucher or approval details.

For online purchases, your retailer or manufacturer will arrange delivery or collection once the voucher has been processed.

 

Step 6: Repay Through Salary Sacrifice

Your Employer will implement the agreed salary sacrifice in the following pay period.

This means payments are taken from your gross salary through payroll before tax and National Insurance are applied, helping employees make savings compared to purchasing the bike outright.

The exact savings vary depending on your personal tax circumstances.

Please note that the savings come through payroll and tax efficiencies rather than a standard retail discount.

 

End of Hire Options

At the end of the Hire Agreement, Green Commute Initiative will move you automatically into a free-of-charge loan agreement to preseve your tax savings.

If ownership is transferred before the end of the loan agreement, a benefit in kind tax will apply.

Green Commute Initiative will explain the available options before the end of the Hire Agreement.

 

Which Scheme is Best for You?

The application process varies depending on which of our two schemes your employer is using:

  • INSTANT is our pay-as-you-go platform, ideal for SMEs (Non-registered);
  • CORPORATE GCI is best suited for large organisations with more than 1,000 employees (please contact us to become Registered).

If your employer is using our Corporate scheme, they will have supplied you with a GCI code which you’ll use to access your organisation’s application page. If not, you will be using our Instant scheme for which no code is needed.

If you have further questions have a look at our FAQs or contact us.


My employer is:

Registered
Non-registered

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FAQs

Do I need to choose my bike before applying?

Yes. Applications are linked to a specific bike, retailer and total value.

Can I include accessories?

Yes, accessories such as helmets, locks and lights can be included within the application.

Can I use a bike shop or buy directly from a manufacturer?

Yes. Green Commute Initiative supports both participating bike shops and manufacturers.

What is a Commuter Wallet?

A Commuter Wallet allows approved funds to be used across participating retailers, giving employees greater flexibility when choosing bikes and accessories.

Can self-employed people use the scheme?

No. The scheme works through PAYE salary sacrifice, so employees must be paid through payroll.

How much can I save?

Savings vary depending on your tax band, but employees can typically make savings through reduced tax and National Insurance contributions between 28-47%.

What happens at the end of the agreement?

Employees may be offered an extended loan or ownership transfer.