By Claire Watt
A Cycle to Work scheme is a popular employee benefit that allows organisations to loan bikes and safety equipment to staff, helping them commute more sustainably while accessing valuable tax savings.
Typically offered through a salary‑sacrifice arrangement, these schemes let employees enjoy reduced‑cost cycling without needing to purchase a bike upfront. At the end of the hire period, many schemes also give employees the option to buy the equipment.
Our guide explains everything employers need to know to set up and run a compliant, attractive Cycle to Work scheme — from understanding eligibility and tax rules to managing administration and boosting employee uptake.
In this guide, learn about:
- Benefits of cycle-to-work schemes
- Researching the options
- Tax exemption requirements
- Preparing a project plan
- Choosing a scheme provider
- Consumer credit requirements
- Using salary sacrifice
- How the scheme works
- Employee sign-up
- Setting up the loan agreement
- Insurance arrangements
- Mileage allowance
- End of loan agreement period
- Reviewing the scheme
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About the author
Claire Watt, Founding Director of Ditton HR
Claire Watt is the founding director of Ditton HR, which offers HR and training services to organisations to ensure that they have easy access to high quality HR advice and support.
Claire is a qualified HR and training professional who is a fellow member of the CIPD and has more than 14 years’ experience in HR and training, 11 years as leading the HR function. Claire is a psychology graduate with a master’s in personnel and development and qualified in psychometric testing (Level A and B). Her experience spans across the legal profession, retail, tourism, not-for-profit and charitable sectors. Her most recent role before starting at Ditton HR was as executive director of people at Samaritans.
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