How to buy a bike through Cycle to Work

The Cycle to Work scheme in the United Kingdom is a government-backed initiative that allows employees to purchase a bicycle and accessories through their employer, spreading the cost over time and benefiting from tax savings.

Here’s a step-by-step guide to using the scheme for the first time:

Step 1: Check Eligibility

Employer Participation: Confirm that your employer is registered with the Cycle to Work scheme. Not all employers participate, so this is the first step.
Eligibility: Ensure you meet any specific criteria your employer might have, such as being a permanent employee.

Step 2: Choose Your Equipment

Visit an Alpkit store or website: Browse bicycles and accessories (like helmets, lights, etc.) you want to purchase through C2W..
Budget: You are no longer limited to £1000, but no all employers are aware of this rule change. You may have to give them a nudge.

Step 3: Apply for a Certificate

Online Application: Fill out an application through your employer’s Cycle to Work scheme provider (like Cyclescheme, Cycle2Work, etc.).
Approval: Your employer will review and approve the application. Once approved, you’ll receive a certificate/voucher worth the value of your selected equipment.

Step 4: Redeem Your Certificate

Purchase the Bike: Take your certificate/voucher to the retailer (or email) and use it to purchase your selected bike and accessories. You can do this in-store or online..

Step 5: Salary Sacrifice

Repayment: The cost of the equipment will be deducted from your salary before tax each month over an agreed period (typically 12-18 months). This is known as a salary sacrifice.
Tax Savings: Since deductions are made before tax, you’ll save money because the amount you’re paying is taken from your gross salary.

Step 6: Use the Bike

Start Cycling: Once you have your bike, you can start using it to commute to work (and for personal use, within the guidelines of the scheme).

Step 7: End of the Hire Period

Ownership Options: After the salary sacrifice period ends, you can usually choose to:
Extend the Hire: Continue using the bike and extend the agreement at no extra cost.
Purchase the Bike: Pay a one-time fee to take ownership of the bike (typically a small percentage of the bike’s value).
Return the Bike: Hand the bike back (though this is less common).

By following these steps, you’ll be able to get a bike through the Cycle to Work scheme, save on taxes, and enjoy a healthier commute. Find out which Cycle to Work schemes we work with.

How to buy a bike through Cycle to WorkUpdated 3 months ago