Bike2Work Scheme is an independent cycle-to-work provider — not connected to Halfords. If your employer has signed up, you hire a bike through salary sacrifice and collect it from one of 2,200+ partner shops using a Bike2Work voucher. You save between 28% and 47% depending on your tax bracket.
What Is the Bike2Work Scheme?
Bike2Work Scheme (bike2workscheme.co.uk) is a privately-run cycle-to-work provider that administers the Government’s tax-exempt hire benefit on behalf of employers. It sits alongside Cyclescheme, Green Commute Initiative and Cycle Solutions as a standalone provider — it is not affiliated with Halfords, which runs its own separate Halfords Cycle2Work scheme.
The underlying mechanism is the same as every cycle-to-work scheme: your employer purchases the bike and you hire it back through a salary sacrifice arrangement over a set period (typically 12 months). Because the hire cost comes off your gross pay, you don’t pay income tax or National Insurance on that portion of your salary.
Is Bike2Work the Same as Halfords Cycle2Work?
No. The names are confusingly similar, but they are separate organisations:
- Bike2Work Scheme (bike2workscheme.co.uk) — independent provider, 2,200+ shops across the UK including many independent bike retailers.
- Halfords Cycle2Work (halfords.com/cycle2work) — run by Halfords; vouchers are primarily for use at Halfords and Tredz stores, though some independents may accept them.
Before applying, check which scheme your employer has registered with. Their HR team or payroll department will have the provider name. For a comparison of the main providers, see our Cyclescheme vs Cycle2Work vs GCI guide.
How the Bike2Work Scheme Works
The process runs in six steps:
- Employer registers — free online via bike2workscheme.co.uk; takes a few minutes. The employer receives a company code.
- Employee applies — you use the company code to register and request an allowance (the maximum value of bike and equipment you want).
- Choose your bike — visit any of the 2,200+ partner shops, pick your bike and accessories, and get a written quote.
- Submit the quote — upload or send the quote to Bike2Work for approval.
- Voucher issued — once approved, a voucher is generated. Your employer pays Bike2Work and you receive the voucher.
- Collect your bike — take the voucher to the shop and ride away. Salary deductions start the following pay period.
Which Shops Accept Bike2Work Vouchers?
Bike2Work has over 2,200 partner retailers, including many independent bike shops as well as online stores. You can search for participating shops on the Bike2Work website. Because you get a written quote from the shop first, you know before applying whether your preferred retailer is in the network.
If you haven’t yet decided on a bike, their bike size guide can help you narrow down the right frame before you visit a shop.
How Much Could You Save?
The saving comes from paying the hire cost before tax, rather than from your net pay. For a £1,000 bike:
- Basic-rate taxpayer (20% IT + 8% employee NI): saves approximately 28%, or around £280.
- Higher-rate taxpayer (40% IT + 2% NI): saves approximately 42%, or around £420.
- Additional-rate taxpayer (45% IT + 2% NI): saves approximately 47%, or around £470.
These figures assume salary sacrifice does not push your earnings below the National Living Wage (£12.71/hour for those aged 21 and over, per GOV.UK 2026/27 rates). Use our Cycle to Work savings calculator to get a figure based on your own salary and bike cost.
For a deeper look at the maths, see Is the Cycle to Work Scheme Worth It?
What Happens at the End of the Hire Period?
At the end of the hire period (typically 12 months), Bike2Work will contact you with three options:
- Extended use with a deposit — pay a small, refundable deposit (typically 3% or 7% of the original price, depending on your bike’s value) and keep using the bike for up to a further 36 months. No further salary deductions. At the end of extended use, ownership transfers to you and the deposit is refunded.
- Return the bike — return it and receive your deposit back.
- Transfer of ownership — if Bike2Work offers a direct transfer, no further payment is needed.
HMRC guidance requires that ownership cannot be promised at the start of the hire — doing so converts the arrangement to a hire purchase, removing the tax exemption. For more on how end-of-hire works across providers, see our Cycle to Work End of Hire guide.
Who Can Use the Bike2Work Scheme?
You can use Bike2Work if:
- You are employed on a PAYE basis (the scheme runs on salary sacrifice, which requires a PAYE employment arrangement).
- Your employer has registered with Bike2Work Scheme.
- Salary sacrifice will not reduce your take-home pay below the National Living Wage.
Self-employed sole traders cannot use cycle-to-work schemes because salary sacrifice requires an employment relationship. If you’re self-employed, see our Cycle to Work for the Self-Employed article for the alternatives available.
There is no minimum employer size — small businesses can register the same as large ones.
Frequently Asked Questions
Is Bike2Work the same as cycle2work?
No. “Cycle to Work” (sometimes written cycle2work) is the name of the Government tax exemption, not a provider. Bike2Work Scheme is one of several companies that administer the scheme. Halfords’ product is also sometimes called Cycle2Work, but is a separate entity. Check with your employer which provider they use.
What is the maximum bike value on Bike2Work?
Bike2Work states it can process bikes of any value. For bikes over £1,000 the hire agreement is held directly with Bike2Work rather than your employer, which is the arrangement that allows uncapped values under Government guidance. Before committing to a high-value bike, verify the scheme’s current regulatory status on the FCA Financial Services Register at register.fca.org.uk.
Can I include accessories on the Bike2Work voucher?
Yes. Safety equipment — helmets, lights, locks, hi-viz, gloves and panniers — can be included alongside the bike, up to your approved allowance.
Does my employer have to pay anything upfront?
Yes. The employer pays Bike2Work for the bike and equipment, then recovers the cost through the monthly salary sacrifice deductions over the hire period. Most employers recoup the cost in full and also save on employer National Insurance contributions (15% on earnings above the secondary threshold, per GOV.UK 2026/27 rates) on the sacrificed salary.
