Cycle Solutions is an FCA-authorised cycle to work provider that lets employees spread the cost of a new bike and accessories through salary sacrifice — no upfront payment, no end-of-hire deposit. If your employer has signed up, here is what you need to know before you apply.
What Is Cycle Solutions?
Cycle Solutions (Cycle to Work) Limited is authorised and regulated by the Financial Conduct Authority. That matters because, under the government’s 2019 guidance, only FCA-authorised providers can run a scheme with no upper limit on bike value. Employers that arrange the scheme themselves, without an authorised provider, are capped at £1,000 per employee.
Cycle Solutions is one of the founding members of the Cycle to Work Alliance — the industry body that represents the main providers — and has been running employer benefit schemes for over 14 years. Major employers including NHS England and the Co-op have used the scheme.
How It Works
The mechanics are identical to any UK cycle to work scheme: salary sacrifice, paid from gross pay before tax.
- Your employer registers with Cycle Solutions. Registration is free.
- You browse available bikes and accessories, either through your employer’s personalised online store or at a partner bike shop.
- You sign a hire agreement. The equipment is hired to you, not sold — this is a legal requirement that underpins the tax exemption.
- Payments are deducted from your gross salary over 6, 12, or 18 months, reducing the income tax and National Insurance you pay on that portion of pay.
- At the end of the hire period, you choose what happens next.
How Much Could You Save?
Your saving depends on your income tax band. For 2026/27:
- Basic-rate taxpayers (20% income tax + 8% employee NI): save roughly 28% on the certificate value.
- Higher-rate taxpayers (40% + 2% NI): save roughly 42%.
- Additional-rate taxpayers (45% + 2% NI): save roughly 47%.
Cycle Solutions quote “up to 49%” on their website — the precise figure varies with salary, tax code, and whether your employer passes on any of their own National Insurance saving. To model the numbers for your specific package, use our cycle to work savings calculator. For a broader look at whether the scheme stacks up for your situation, see our is cycle to work worth it guide.
One practical constraint: salary sacrifice reduces your gross pay on paper. An employer cannot process the sacrifice if it would bring your cash pay below the National Living Wage (£12.71 per hour for workers aged 21 and over from April 2026, as confirmed by GOV.UK). If you are on or near minimum wage, the scheme may not be available to you. See our eligibility and limits guide for the full rules.
What You Can Buy (and From Where)
Cycle Solutions partners with over 1,300 independent bike shops across the UK — searchable by postcode on their website — and also operates its own direct online store. Between the two channels, you can access over 400 bike brands.
Ordering directly from the Cycle Solutions website includes an 18-month warranty, eight weeks of free insurance, and free delivery. Partner shops handle things locally, which suits buyers who want to test ride before committing.
The scheme covers bikes (road, hybrid, mountain, e-bike), cycling clothing, helmets, locks, lights, and other safety accessories. Because Cycle Solutions is FCA-authorised, the scheme has no upper limit on certificate value — your employer may set an internal cap, but the provider does not impose one. That makes it a practical option for high-spec commuters and e-bikes alike.
If you are looking at an e-bike: it needs to comply with UK EAPC rules (motor no more than 250 W, assistance cutting off at 15.5 mph) to be ridden on public roads without a licence or insurance. Non-compliant models can still be purchased through the scheme, but they cannot legally be used on roads.
What Happens at the End of the Hire Period?
Once the initial hire period ends — typically 12 months — Cycle Solutions offer three options:
- Extended rental (no deposit required): You continue using the bike at no additional cost. Ownership transfers automatically once the bike depreciates to a negligible fair market value. Cycle Solutions do not charge the 3% or 7% refundable deposit that some other providers require at this stage — a material difference if you are comparing costs side by side.
- Immediate purchase: You pay the current fair market value in line with HMRC’s depreciation guidance — roughly 18–25% of the original price after the first year, reducing further over subsequent years. This closes the arrangement immediately.
- Return the goods: You hand the bike back and have no further obligation.
If you leave your employer while the hire agreement is still running, you will need to settle the remaining balance before your leaving date. This applies to every provider, not just Cycle Solutions. For a full breakdown of what end-of-hire means in practice, read our end of hire and ownership guide.
Benefits for Employers
Registering with Cycle Solutions is free, and there is no minimum number of bikes required. Once set up, the employer approves or rejects employee applications through an online dashboard — Cycle Solutions manage the compliance side, including HMRC paperwork for schemes above the consumer credit threshold.
The salary sacrifice reduces the employer’s gross payroll, which cuts their National Insurance bill. The employer NI rate has been 15% since April 2025 (up from 13.8%, per GOV.UK). On a £1,000 bike package, that is a £150 saving per employee — which accumulates quickly in larger workforces.
Cycle Solutions also offer on-site roadshows and employee engagement materials to drive take-up. For everything else an employer needs to know about running the scheme, see our employer’s guide to cycle to work.
How Cycle Solutions Compares to Other Providers
Cycle Solutions sits alongside Cyclescheme, Halfords Cycle2Work, and Green Commute Initiative as one of the main UK providers. The practical differences that matter most:
- No end-of-hire deposit: Cyclescheme charges a 3% (up to £500) or 7% (above £500) refundable deposit when you choose the extended rental path. Cycle Solutions charges nothing.
- Retailer network: Cycle Solutions quotes 1,300+ independent shops plus a direct store. Cyclescheme quotes a larger network of 2,600+. GCI works primarily through a different set of retailers. It is worth checking which local shops are available before choosing a provider — your employer may have already signed up with one.
- No scheme limit: Like Cyclescheme and GCI, Cycle Solutions’ FCA authorisation removes the £1,000 ceiling. Halfords Cycle2Work also holds FCA authorisation.
For a full side-by-side comparison of the main providers, see our Cyclescheme vs Cycle2Work vs GCI guide.
Frequently Asked Questions
Is Cycle Solutions FCA-authorised?
Yes. Cycle Solutions (Cycle to Work) Limited appears on the FCA register and is authorised and regulated by the Financial Conduct Authority. This means they can run schemes with no upper limit on bike value, beyond the £1,000 ceiling that applies to non-authorised arrangements.
Does Cycle Solutions charge an end-of-hire deposit?
No. When you opt for the extended rental path at the end of your hire period, Cycle Solutions do not charge a deposit. This is different from some other providers, which charge 3–7% of the certificate value as a refundable deposit at this stage.
Can I buy an e-bike through Cycle Solutions?
Yes. As an FCA-authorised provider, Cycle Solutions can cover e-bikes at any price. The bike must meet UK EAPC rules (250 W motor, 15.5 mph assist cut-off) to be legally ridden on public roads without a licence.
What if my employer is not signed up to Cycle Solutions?
The scheme is employer-led: your employer must register before you can apply. If they use a different provider, the tax savings work the same way — only the shop network and end-of-hire terms differ. If your employer has no scheme at all, you can ask HR to consider signing up; registration with Cycle Solutions is free and carries no minimum commitment.
