The bike scheme lets employees get a new bike and accessories through a salary sacrifice arrangement.
Government-backed initiative
Helps reduce commuting costs
Payments are taken from your salary before tax and NI
🔧 What’s included?
You can get:
🚲 A new bike (including electric bikes)
🪖 Safety equipment (helmet, lights, locks, etc.)
🔧 Accessories and upgrades
👉 Available through a wide network of over 1,000 bike shops and online retailers.
🪜 How it works (Step-by-step)
Choose your bike & accessories
Select from partnered retailers
Spread the cost
Payments are taken from your salary over 12 or 18 months
Salary sacrifice
Your gross salary is reduced
Use your bike
Mainly for commuting, but you can also use it personally
End of agreement
Option to take ownership for a small fee
👉 No credit checks required.
💷 How you save money
Payments come from your gross salary
You save on Income Tax and National Insurance
💡 Typical savings:
Basic rate taxpayers: ~28% saving
Higher rate taxpayers: ~42% saving
👤 Key benefits for employees
💸 Discounted bike and equipment
📉 Spread the cost over time
🚫 No upfront payment or credit checks
🚗 Save on fuel and parking
💪 Improve health and fitness
🌱 Reduce environmental impact
⚠️ Things to keep in mind
Your take-home pay will reduce
Must mainly be used for commuting
You don’t own the bike immediately (ownership comes later)
Agreement typically lasts 12–18 months
⭐ In summary
The bike scheme is a simple and affordable way to get cycling:
👉 Save money on a new bike
👉 Pay monthly through salary
👉 Boost fitness and wellbeing
👉 Reduce travel costs