How does Cyclescheme work?
Cyclescheme is the employee benefit that can save you 26-40% on a new bike and accessories of your choice. The payments are taken directly from your gross salary by your employer.
You can choose a bike (including e-bikes), a bike and accessories, or just cycle accessories. With many employers offering no limit on how much you can spend through the scheme, Cyclescheme is the perfect way to gear up to cycle commute.
The simplest explanation is that Cyclescheme acts as an employee benefit, in the form of a salary sacrifice.
This means that you agree to give up part of your salary in exchange for a benefit – in this instance the benefit is a bike and/or accessories. The salary sacrifice is taken from your gross salary (before tax) which means that you will pay less Income Tax and National insurance.
It is worth noting that there is no credit check if you wish to participate, and if you are under 18 you can join the scheme if your guardian signs a guarantor agreement. Being on probation should not affect your eligibility — if you are unsure, please check with your employer.
Cyclescheme have produced a particularly helpful video to help explain this.