Cyclescheme is one of the longest-running Cycle to Work providers in the UK and bills itself as the most popular. It runs the same government salary-sacrifice scheme as everyone else — the savings and tax rules are identical — but it has its own retailer network, its own application process and its own way of handling the end of the hire. This guide explains how Cyclescheme works in plain English, so you know exactly what you are signing up to.
How Cyclescheme works
Cyclescheme is salary sacrifice, like every Cycle to Work scheme. Your employer buys the bike and accessories and you hire them, with the cost taken from your gross pay — usually over 12 months — before income tax and National Insurance. Because that slice of salary is never taxed, you save at your marginal rate. Cyclescheme puts the typical saving at between 23% and 39% once the end-of-hire step is included. It works in three steps:
- Apply. Pick a package — bike only, bike plus accessories, or accessories only — and apply online using your employer’s code.
- Get your gear. Your employer pays for the package and Cyclescheme sends you an eCertificate, which you exchange for the bike in store or online.
- Choose how to own it. At the end of the hire you pick one of the ownership options below.
Our main Cycle to Work guide and calculator shows the exact figures for your salary.
How much can you spend?
Cyclescheme does not set its own spending limit. There has been no statutory upper limit on Cycle to Work since 2019, so the cap is whatever your employer allows. If your employer permits it you can put an e-bike or cargo bike costing several thousand pounds through the scheme, and the percentage saving applies to the whole amount. Many employers still set their own ceiling, so check yours before you choose a bike above it.
Where you can spend your certificate
Cyclescheme’s strength is its network: more than 2,000 partner shops across the UK, from independent local bike shops to larger chains, plus a growing list of online partners. You redeem the eCertificate in store or online, and you can include safety accessories — helmet, lock, lights, mudguards and so on — in the same package so they share the tax saving. If you are still choosing, our bike size guide and e-bike buyer’s guide help you pick.
What happens at the end: Own it later, Own it now or return
As with every provider, you are hiring the bike during the agreement, not buying it, so there is a step at the end to take ownership. Cyclescheme gives you three choices:
- Own it later — the option Cyclescheme recommends. You pay a small refundable deposit of 3% of the certificate value for packages up to £500, or 7% above £500. The bike then stays on an extended hire for around three more years with no further payments, after which Cyclescheme keeps the deposit as the final payment and ownership passes to you. This route gives the headline 23–39% saving.
- Own it now — you pay the bike’s fair market value straight away, set by HMRC’s valuation table rather than by Cyclescheme. It is quicker, but the upfront fee is higher, so the overall saving is smaller.
- Return it — you hand the bike back and your deposit is refunded.
We explain the HMRC valuation figures behind all of this in our end of hire guide.
How Cyclescheme compares with Cycle2Work and GCI
Cyclescheme, Halfords Cycle2Work and Green Commute Initiative run the same tax scheme with different retailer networks and end-of-hire arrangements. Cyclescheme’s pull is the large independent-shop network; Halfords leans on its high-street stores and Tredz; GCI is popular for high-value e-bikes. We weigh the three up side by side in our provider comparison, and our is it worth it? guide folds the end-of-hire cost into the overall decision. For the Halfords route specifically, see our Halfords Cycle2Work guide.
Frequently asked questions
How much can I save with Cyclescheme?
Cyclescheme puts the typical saving at between 23% and 39% through its recommended Own it later option, with the exact figure depending on your tax band and the package value. You save at your marginal rate — about 28% as a basic-rate taxpayer, rising to roughly 42% or 47% for higher and additional-rate taxpayers — less the small deposit paid at the end.
Is there a spending limit on Cyclescheme?
Cyclescheme does not impose one; your employer sets any limit. There has been no statutory cap since 2019, so subject to your employer’s rules you can buy an e-bike or cargo bike costing several thousand pounds.
How does the Own it later deposit work?
You pay a refundable deposit of 3% of the certificate value for packages up to £500, or 7% above £500. After an extended hire of around three more years with no payments, Cyclescheme keeps that deposit as the final payment and the bike becomes yours; if you decide not to keep it, the deposit is refunded.
Can I get an electric bike on Cyclescheme?
Yes. E-bikes are eligible, and because they cost more the percentage saving applies to a larger amount — often the best use of the scheme, provided your employer’s limit allows it.
The bottom line
Cyclescheme is the same tax scheme as the rest, with the widest independent-shop network and a recommended Own it later route that keeps the saving high. Run your numbers in the calculator, check your employer’s limit, and decide which ownership option suits you before you apply.
