The Cycle to Work scheme is open to most employees, but there are a few rules that decide whether you can join, how much you can spend and what you can buy. This guide explains the eligibility conditions, the spending limit and the main rules in plain English, so you know where you stand before you apply.
Who is eligible?
The scheme is open to anyone paid through PAYE — full-time or part-time — whose employer offers it. The one condition that catches people out is the National Minimum Wage: salary sacrifice cannot take your pay below the National Minimum or National Living Wage, so if you are close to that floor you may not be able to sacrifice enough to cover a bike. The self-employed cannot use the scheme, because there is no salary to sacrifice. Our main guide and calculator shows what the saving looks like on your salary.
Is there a spending limit?
No — not a statutory one. The old £1,000 cap was removed in June 2019, so the limit is now whatever your employer sets. Many employers keep a ceiling for budgeting, but others allow e-bikes and cargo bikes costing several thousand pounds. Packages over £1,000 require the scheme provider to hold Financial Conduct Authority authorisation, which the main providers do.
What you can get
You can put a bike and safety accessories through the scheme as one package: helmet, lock, lights, mudguards, a pump and similar kit all qualify. Electric bikes and adaptive cycles are eligible too — removing the £1,000 cap was largely aimed at making e-bikes affordable through the scheme. If you are still choosing, our bike size guide and e-bike buyer’s guide help.
The salary sacrifice rules
You hire the bike from your employer during the agreement, paying from gross pay so you save income tax and National Insurance — about 28% for a basic-rate taxpayer, and more for higher and additional-rate taxpayers. Two things to keep in mind: reducing your gross pay can slightly affect pay-related figures such as pension contributions, statutory maternity pay or a mortgage affordability assessment; and the bike should be used mainly for commuting, though there is no need to log your journeys.
What happens at the end, and can you do it again?
Because you are hiring rather than buying, there is an ownership step at the end of the agreement — usually a small refundable deposit or a fair-market-value fee set by HMRC. We explain the figures in our end of hire guide. Once an agreement finishes you can normally start a new one, so you can upgrade or get a second bike in a later scheme year if your employer allows it.
Frequently asked questions
Who can use the Cycle to Work scheme?
Any employee paid through PAYE whose employer offers the scheme, as long as the salary sacrifice does not take their pay below the National Minimum or National Living Wage. The self-employed are not eligible.
Is there a maximum you can spend?
There is no statutory limit since the £1,000 cap was removed in June 2019. Your employer sets any cap, and packages over £1,000 need the provider to hold FCA authorisation.
Do I have to use the bike only for commuting?
It should be used mainly for qualifying journeys such as commuting, but you can also ride it for leisure, and there is no requirement to record your mileage.
Can I get an electric bike or more than one bike?
Yes. E-bikes and adaptive cycles are eligible, and once an agreement ends you can usually take out a new one for another bike, subject to your employer’s rules.
The bottom line
If you are paid through PAYE and your wage stays above the minimum after the sacrifice, you can almost certainly use the scheme — on a bike at whatever price your employer allows. Check your employer’s limit, run the numbers in our calculator, and decide what to buy.
