Cycling is a great way to travel, get fit and reduce the impact that your car has on the environment.

But one additional benefit of getting on your bike could be financial. In the UK, the Cycle To Work scheme is a government programme that encourages workers to cycle to work, reducing both their carbon footprint and rush-hour traffic.

In this article, we will answer some common questions about the UK Cycle To Work scheme and offer advice to help our customers make the most of its benefits.

What Is The Cycle To Work Scheme?

The UK Government introduced the Cycle to Work Scheme in 1999 to reduce air pollution. Cycle To Work is a salary sacrifice scheme, which means that if you sign up, you agree to sacrifice part of your pre-tax salary in exchange for a benefit, such as a new bicycle, clothing, or equipment.

In addition to reducing the amount of National Insurance Contributions the employer pays, the Cycle To Work scheme allows participants to receive up to 42% of the cost of a new bike, which can be spread across monthly contributions taken directly from their salary.

According to the Cycle To Work Alliance, over 2 million people have taken advantage of the Cycle To Work scheme since its inception.

How Does The Cycle To Work Scheme Work?

To qualify for the Cycle To Work scheme, your employer must be registered as a member of the scheme with one of the scheme providers, like CycleScheme or Cycle Solutions.

Through this scheme, you can choose the equipment you need to cycle to work comfortably. This can include bicycles, clothing, and accessories, allowing scheme users to decide for themselves which equipment is best suited to their commute.

After selecting your gear, you will receive a breakdown of monthly costs, which will be deducted from your pre-tax salary. Once your employer has approved your application, you will receive a voucher, a redemption code, or a collection letter, depending on the scheme. You can then exchange these for your equipment with the retailer.

After receiving your equipment, pre-tax salary sacrifice deductions will be taken from your salary for an agreed period, until the end of the scheme.

Do I Own The Equipment In The End?

At the end of the lease period, you do not own the equipment.

Once the agreed period has finished, employees will typically have three choices:

• Return the equipment to the supplier

• Purchase the equipment

• Extend the loan period for an additional 3 years, for a deposit of either 3% or 7% of the value. At the end of the next three years, you can either return the equipment and get your deposit back or keep it with no additional payments required.

What Equipment Can I Get Through The Cycle To Work Scheme?

The Cycle To Work scheme allows employees to purchase bikes, including some types of E-bikes, as well as equipment like helmets, shoes, and reflective panels. According to the Cycle To Work Alliance website, the full list of equipment is:

• Cycle helmets (as long as they conform to European EN 1078 standards) 

• Reflective bicycle clothing

• Bicycle bells and horns

• Maintenance equipment, such as pumps, puncture repair kits, tool kits and sealant

• Luggage attachments and straps

• Bike locks and chains

• Reflectors

• Child seats

• Lights, including dynamo packs

• Mirrors and mudguards

• Shoes, pedals and cycle clips

• Dress guards

What Are The Restrictions On The Cycle To Work Scheme?

Although the Cycle To Work scheme is a great way to access bikes and bike equipment at a reduced cost, there are some drawbacks.

The salary sacrifice element of the scheme means it is only available to PAYE employees, so self-employed workers and freelancers are unlikely to qualify.

In addition, it is important to remember that Cycle To Work is a lease scheme, which means you do not automatically own the equipment at the end of the agreed period.

Finally, the equipment available through the Cycle To Work scheme does not include bike racks, so the employee must purchase this equipment.

How Can I Get Started With The Cycle To Work Scheme?

If you are interested in joining a Cycle To Work scheme, the first thing to do is check whether your employer is registered with an eligible scheme. This can be done either through your employee benefits portal (if you have one) or by contacting your HR team directly.

Once you have confirmed you are eligible, choose your equipment, have your application approved by your employer, and you will be on your way to reducing your carbon footprint and helping reduce rush hour traffic.

Find The Perfect Bike Rack At Bison Products

Unfortunately, the Cycle To Work scheme does not cover bike racks on its list of available accessories.

However, adding a bike rack to your garage or home is a great way to ensure your bike stays in great condition, off the ground, and free from grime and dirt.

Whether you would benefit most from a floor-mounted bike rack for quick and easy access or a wall-mounted bike rack to save space, our range of bike racks includes a bicycle storage solution to meet a wide range of customer needs.

When selecting a bike through the Cycle to Work Scheme, you might be tempted to choose a bike that has disc brakes, due to their improved resistance to rain, dirt, and mud, common problems for cyclists in the UK. Consider choosing a bike rack for bikes with disc brakes to keep your bike in great condition and free from damage.

Finally, if you need somewhere to store your bike at work or if you are an employer looking to join the Cycle To Work scheme, consider our range of commercial bike racks, perfect for high-traffic commercial environments like offices, hospitals, and schools. Pair your bike rack with an outdoor shelter to create a complete storage solution for bicycles, protecting them against both theft and environmental conditions. 

If you have any questions about our bike racks or any of our other products, feel free to contact us; a member of our team will be happy to assist with any query.