Cycle to Work Scheme
Save on taxes and commute sustainably — get up to 35% off a new bike through salary sacrifice.
Why Cycle to Work?
You’ll have your own reasons for wanting to cycle to work, but there are probably more benefits than you realise. As well as personally benefitting from cycling to work, there are environmental benefits including less congestion, less pollution through lower emissions, and reduced noise.
Our Cycle to Work scheme is a salary sacrifice arrangement approved by HMRC, meaning no further PAYE or NIC charges are incurred. It’s a genuinely tax-efficient way to get a new bike.
Department of Transport: At least 50% of the cycle’s use must be for qualifying journeys (commuting to work). If you’re working from home or need to build up fitness first, that’s fine — you can make up for it over the coming years as your commuting increases.
Save up to 35%
Tax-Free via Salary Sacrifice
HMRC Approved
Getting Started
Don’t want to read all the details? Here’s how to get things going in three easy steps.
Find a GCI Bike Store
Find a bike store that is registered with GCI (Green Commute Initiative) and choose the bike and accessories you’d like.
Get a Written Quote
Ask the bike shop for a written quote with the full purchase details. The quote must be valid for 30 days.
Email Us the Quote
Send the quote to us and we’ll help you with the next steps. It really is that simple.
How the Scheme Works
The buying process is handled by the experts at Green Commute Initiative (GCI) using their Instant GCI scheme.
Choose your bike package
Choose your new bike and any accessories you need — safety equipment, clothing, tools, and spares. HMRC rules mean GPS and bike computers cannot be included. Contact a registered bike shop and get a quote for the package.
Submit your GCI application
Submit an application to GCI using their Instant GCI scheme. A pro-forma invoice for a GCI voucher covering the package cost will be emailed to you. Pass this invoice to us so payment can be made.
Transfer your deposit
Transfer funds from your personal bank account to our business account, equal to the total value of the bike package. These funds are held in a separate account and refunded to you once the full value has been repaid through salary sacrifice deductions.
We pay GCI and you collect your bike
We pay GCI from our bank account, and they arrange for your bike package to be purchased and ready for you to pick up from the store.
Salary deductions repay the purchase
You agree a salary deduction from your normal payslips to repay the purchase value. The most common scenario is 12 months of deductions. Once complete, we refund the original deposit to you in full.
Ownership: The Government’s Cycle to Work scheme is based on bicycle hire with no automatic right to ownership at the end of the hire period. GCI retains ownership until agreed otherwise and will write to you with ownership options at the end of the hire period, ensuring HMRC rules are followed. Unlike other scheme providers, GCI will not charge you a 7% end-of-scheme fee.
A Worked Example
See how the numbers work with a real-world scenario.
Mia is a freelancer working with No Worries Umbrella who wants to buy a new bike to commute from home to work. She’s tired of the traffic and wants the extra exercise.
Bike & Accessories
Mia has found her bike from a GCI-approved store. Total value is £1,200 including lights, a helmet, and cycling clothes to help keep her visible on the road.
Employment & Salary
Mia works through a hiring partner at £22/hour for 37.5 hours per week. After deductions for taxes, pension, and the umbrella margin, she takes home £531.36 per week.
Salary Sacrifice
Mia agrees to sacrifice £30.11 of her weekly timesheet income to repay the bike purchase. After 45 weeks the bike is completely repaid.
Weekly Payment
Her payslip shows a deduction of £30.11, but her net pay only drops by £17.20 per week — from £531.36 to £514.76. That’s the power of salary sacrifice.
Financial Summary
£1,200
Total Bike Cost
£774
Mia’s Actual Cost
35%
Total Saving
After 45 weeks, Mia has paid off the bike entirely. Her total out-of-pocket cost was £774, saving her £426 — entirely as a result of tax savings from the salary sacrifice arrangement.
The Cycle to Work scheme not only gets you a new bike but also provides significant savings, making your commute more affordable and environmentally friendly.
Contact Me
Don’t have time to read through the details? No problem — just drop us your info and we’ll take it from there.
Choose to have one of our friendly team give you a call, or we can send you an introductory email with everything you need to know — straight to your inbox, ready when you are.
It only takes 15 seconds. Fill in the form and let us do the rest.
Contact me
Ready to Get Cycling?
Get a quote from a GCI-registered bike shop and email it to us. We’ll take care of the rest.
If you have any questions about the scheme, our friendly team is here to help.