Cycle to Work Scheme UK 2026: Complete Guide to Saving on Bikes and E-Bikes
TL;DR
The Cycle to Work scheme lets UK employees save 32-47% on bikes and e-bikes through salary sacrifice. There is no official price cap (since 2019), though your employer's scheme provider may impose one. E-bikes (including pedal-assist models like the Specialized Creo and Trek Rail) are eligible. The typical saving for a higher-rate taxpayer on a £3,000 e-bike is approximately £1,200.
How the Scheme Works
- Your employer signs up with a Cycle to Work scheme provider (Cyclescheme, Green Commute Initiative, Bike2Work, etc.)
- You choose your bike and accessories from a participating retailer
- Your employer purchases the bike via the scheme provider
- You repay through salary sacrifice over 12-48 months (pre-tax and pre-NI)
- At the end, you can purchase the bike outright for a small residual value (typically 3-7% of original price)
Tax Savings Explained
Because payments are made before tax and National Insurance, you save:
- Basic rate taxpayer (20%): Save approximately 32% (20% tax + 12% NI)
- Higher rate taxpayer (40%): Save approximately 42% (40% tax + 2% NI)
- Additional rate taxpayer (45%): Save approximately 47% (45% tax + 2% NI)
Example Savings
| Bike Price | Basic Rate Saving | Higher Rate Saving |
|---|---|---|
| £1,000 | ~£320 | ~£420 |
| £2,000 | ~£640 | ~£840 |
| £3,000 | ~£960 | ~£1,260 |
| £5,000 | ~£1,600 | ~£2,100 |
| £8,000 | ~£2,560 | ~£3,360 |
E-Bike Eligibility
E-bikes are fully eligible for the Cycle to Work scheme, provided they meet the UK EAPC definition:
- Pedal-assist only (no throttle-only mode)
- Motor cuts out at 25 km/h (15.5 mph)
- Maximum continuous motor power of 250W
This includes popular models like:
- Specialized Turbo Creo, Turbo Levo, Turbo Vado
- Trek Domane+, Rail, Fuel EXe
- Giant Road E+, Trance X Advanced E+
- Cannondale Topstone Neo, Moterra Neo
Sur-Ron bikes (Light Bee X, Ultra Bee, Storm Bee) are NOT eligible as they exceed EAPC limits.
Price Limits
Since June 2019, there is no official government price cap. However:
- Cyclescheme: Up to £5,000 with employer approval
- Green Commute Initiative: No limit
- Bike2Work: Up to £5,000 standard, higher with approval
If you want a bike over £5,000 (such as an S-Works Tarmac SL9), ask your employer to use the Green Commute Initiative, which has no upper limit.
What Can You Include?
| Eligible | Not Eligible |
|---|---|
| Bike / E-bike | Car racks |
| Helmet | Sports nutrition |
| Lights | Clothing (non-safety) |
| Lock | GPS computers |
| Mudguards | Action cameras |
| Panniers/bags | Turbo trainers |
| Maintenance tools | Bike insurance |
| Reflective clothing |
Step-by-Step Process
- Check eligibility: Ask your HR department if they offer a Cycle to Work scheme
- Choose your bike: Browse eligible retailers (like ebikesandgear.co.uk) and select your bike + accessories
- Get a quote: Obtain a quote or letter of collection from the retailer
- Apply through the scheme: Submit your application via the scheme provider's portal
- Employer approval: Your employer approves the salary sacrifice arrangement
- Collect your bike: Pick up or receive delivery of your new bike
- Monthly payments begin: Salary sacrifice deductions start from your next pay cycle
- End of term: After the hire period, purchase the bike for the residual value
Common Questions Answered
Can I use it if I'm self-employed?
No. The scheme is exclusively for employees (including directors of limited companies).
What if I leave my job?
You can either buy the bike outright for the remaining balance or (in some schemes) transfer the arrangement to your new employer.
Does it affect my pension?
Salary sacrifice reduces your gross salary, which may slightly reduce employer pension contributions. The tax savings usually far outweigh this, but check with your HR team.
Can I get two bikes?
Some scheme providers allow multiple certificates. Check with your employer.
eBikes and Gear participates in all major Cycle to Work schemes. Browse eligible bikes at ebikesandgear.co.uk or contact us for a scheme quote.
FAQ
How much can I save with the Cycle to Work scheme?
A higher-rate taxpayer saves approximately 42% off the retail price. On a £3,000 e-bike, that is roughly £1,260.
Are e-bikes eligible for the Cycle to Work scheme?
Yes, all pedal-assist e-bikes that meet the UK EAPC definition are eligible. This includes most mainstream e-bikes from Specialized, Trek, Giant, and Cannondale.
Is there a maximum price limit?
No official government limit since 2019, but individual scheme providers may cap at £5,000. The Green Commute Initiative has no limit.
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