Cycle to Work is an employee benefit that saves you 25-42% on a new bike and/or cycle equipment. Pay nothing up front and spread the cost - usually over 12 months. Your employer buys your chosen bike and/or equipment and hires them to you for the period, recouping the cost through salary sacrifice.
Your monthly payments are paid from your gross salary (before tax), therefore reducing your income tax and national insurance. At the end of the ‘hire’ period you can either return the bike to your employer; pay the fair market value (usually around 18-25% of the RRP), or pay a small fee to re-hire the bike for a further three years, after which the bike becomes yours for free.
You can also put your £1000 voucher towards other cycling kit such as clothing, helmets and lights. You don't just have to spend your allowance on a bike.
How does it work?