Cycle To Work Scheme (for UK PAYE employees)

How it works

  1. Visit a Cyclescheme bike shop to choose your bike and accessories package. As well as bikes/e-bikes, you can get accessories like a helmet, panniers, lights etc.
  2. CK approves the package, makes a Hire Agreement and buys the bike. (You can choose to pay off the bike in 1–4 years.)
  3. Repayments will be taken from your salary, before tax and without interest. This means that you don’t pay tax on the bike and will also pay lower NI and pension contributions over this time, as your base salary will be lower. CK saves money too by paying lower employer NI contributions over this time.
  4. Once your repayments are complete, you can choose an ownership option (buy the bike, continue renting or stop renting it).

For example:

  • I choose a bike for £800, plus helmet and other accessories for £200
  • I pay 12 Monthly payments of £83.33
  • I pay £70 at the end of the agreement to buy the bike
  • I save £280 in Income tax and Employee NI, paying only £790 total!

Other things to note

  • The bike needs to primarily be used for commuting
  • Employees will need to organise insurance as they are responsible for the bike while they have it
  • Brixton Cycle Worker Co-op is a registered provider so I’m going to get mine there!
  • More info here: https://www.cyclescheme.co.uk/

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