Commuting by bike has many benefits: health, lower costs, reduced emissions, and often a more predictable journey time. But for many, the upfront cost of a new bike (especially an e-bike) or quality accessories can be a barrier. That’s where the UK’s Cycle-to-Work (C2W) / “bike-to-work” schemes come in.
In essence, these are salary-sacrifice or tax-advantaged benefit schemes arranged by employers, allowing staff to get a new bike and equipment via their employer, spread the cost, and reduce tax/NI liability.
Over the years, several scheme providers—often acting as intermediaries between employers, bike retailers, and employees—have become well-known. Below is a comparison of some of the major ones: Halfords (Cycle2Work), Bike2Work (Bike2Work Scheme), Cycle Solutions, Vivup, Green Commute Initiative, Evans (Ride to Work), and Cyclescheme. I’ll also include tips for employees and employers when choosing among them.
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How Cycle-to-Work Schemes Work (Common Framework)
Before diving into individual providers, here’s a quick summary of how the schemes generally function:
1. Employer enrolment
The employer signs up (or is already signed) with a scheme provider or runs an in-house C2W scheme.
2. Employee picks bike / equipment
You select the bike, accessories, safety gear, etc., up to a value (which may be capped by your employer or scheme).
3. Quote / voucher / Letter of Collection (LoC)
The scheme issues a certificate, voucher or letter of collection (LOC) for the agreed amount, which you redeem at a partner retailer.
4. Salary sacrifice & hire period
Instead of buying outright, your employer “hires” the bike/equipment to you and recovers the cost via deductions from your gross (pre-tax) salary over 12 or 18 months (or longer) — this is the “salary sacrifice” mechanism. Because the cost is deducted before tax and NI, you save on those.
5. End-of-hire / ownership
At the end of the hire period, you typically have options: return the bike, extend the hire period (often called “own it later” or “extended use”), or purchase it at a fair market value (often a small percentage of the original cost). These options differ by scheme.
A few caveats and constraints to note:
The scheme must be offered to all employees equally (not just directors).
The salary after deduction must not fall below the National Minimum Wage (or national living wage) for the hours worked.
HMRC requires that the bike is used mainly for commuting (or part of a commute). It’s commonly interpreted as at least 50% work-related journeys, though in practice this is rarely strictly policed.
There used to be a “£1,000 limit” on eligible spend under certain FCA / consumer credit rules, but many schemes (and changing regulations) now allow higher, especially for e-bikes — though employer limits may still apply.
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Choosing the Right Scheme (for Employees & Employers)
Given multiple options, how do you decide which is best? Here are some tips and comparisons.
For Employees
Check which scheme(s) your employer supports. If your employer already has a relationship with one, that is often the simplest route.
Compare total savings, not just “up to % off.” The true benefit depends on your tax rate, the hire period, the end-of-scheme fee, and any hidden costs.
End-of-scheme terms matter. The difference between a fee, extended hire, or “own it later” can significantly affect value.
Retailer choice and bike selection. Some schemes restrict you to certain retailers or models. If there’s a local independent shop you’d prefer, check whether they accept the scheme.
Be aware of salary impacts. Because the scheme is salary sacrifice, your gross salary is reduced — this may affect things like mortgage applications, pension contributions, or benefit thresholds.
Understand what is included. Most schemes allow accessories (helmet, lights, lock, panniers) but limits on what counts (e.g., power meters, GPS) may vary.
Insurance and maintenance. The scheme typically doesn’t cover theft or damage — you’ll likely need to insure the bike yourself.
For Employers
Cost and risk. Most scheme providers charge commissions or admin fees (though some, like GCI or Cycle Solutions, offer low or no end-of-scheme fees). Evaluate the net cost.
Administrative burden. Choose a scheme provider that integrates smoothly with payroll and HR systems. The easier the admin, the more uptake from staff.
Promote usage. To maximize benefit, encourage staff to participate, provide bike parking, showers, and adopt a cycling culture.
Employer savings. Employers can save via reduced National Insurance contributions because salary sacrifice reduces the employer’s NIC base.
Flexibility. Some providers allow you to set your own spending caps or restrict certain models, while others allow more open choice.
Legal compliance. Ensure salary sacrifice arrangements don’t push employees below minimum wage. Also check the scheme meets HMRC guidelines for C2W.
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Example Use Cases & Comparisons
Use Case Best Features / Suggestion
You want wide retailer choice and flexible end-of-scheme terms Cyclescheme or Cycle Solutions
You prefer to use a familiar national retailer Halfords Cycle2Work, Evans Ride to Work
You want a socially minded provider with low commission Green Commute Initiative
Your employer already uses Vivup benefits platform Vivup’s Cycle-to-Work
You want a scheme with a “no fee” end-of-scheme option Evans Ride to Work (for some cases)
You aim for the highest percentage saving Compare tax bracket + scheme terms — Cycle Solutions advertise up to 49%
For instance, suppose you're a higher-rate taxpayer and your employer allows a £1,500 package. With a good scheme, you might save £630) in tax/national insurance on a bike purchase over the hire period. But if the end-of-scheme fee is 5–10% of the bike’s value, your net saving shrinks. That’s why you need to look at the full lifecycle of the scheme.
Another real-world note: some users report that retailers slightly increase the bike’s “scheme price” versus non-scheme price. Always ask the retailer: are you charging me the same price as non-scheme customers? (If not, you might lose some of your savings.)