Cycle to Work Calculator (UK)
Cycle to Work is a salary-sacrifice scheme — your employer leases you a bike from gross pay, so you save income tax and NI. See your real net cost in seconds.
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A basic-rate taxpayer typically saves 32% (20% tax + 8% NI + about 4% extra effect). A higher-rate taxpayer saves around 42% (40% tax + 2% NI). On a £1,500 bike, that's roughly £480–£630 off the sticker price before any end-of-scheme ownership fee.
The £1,000 spend cap was scrapped in 2019. Most regulated providers (e.g. Cyclescheme, Green Commute Initiative, Bike2Work) now offer up to £5,000+ — useful for e-bikes and cargo bikes.
Your Cycle to Work scheme
Should you use Cycle to Work?
For higher-rate taxpayers, Cycle to Work is one of the easiest 40%+ discounts on a bike you'll ever get. Just budget for the end-of-scheme ownership fee — typically 3–7% after 1–4 years using HMRC's fair-market valuation, so a £1,500 bike costs roughly £45–£105 to keep.
Heads-up: salary sacrifice reduces your gross pay, which can slightly reduce employer pension contributions (if % of salary), and mortgage affordability is calculated on your post-sacrifice salary. Usually marginal, but worth checking if you're remortgaging soon.
Frequently Asked Questions
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