What is the Cycle to Work Scheme?

The Cycle to Work Scheme is a UK Government tax exemption scheme, first introduced to employees in 1999. The initiative allows employees to buy bikes, accessories and cycling equipment over a period of time, through their employers as a tax-free benefit. 

We have partnered up with three popular Cycle to Work schemes:

• Bike2Work
• Cycle Scheme
• Green Commute Initiative

Each scheme offers slightly different terms, so you’ll need to look at each one and go for the scheme that best fits your needs. 

How does it work?

To be eligible for the cycle to work scheme, you must meet the following criteria:

• Be 16 or over
• Earn at least minimum wage after the bike payment has been taken from your salary
• Be paid and taxed via Pay As You Earn (PAYE) system

Once you get an e-bike from us, the deal is that 50% of it’s use should be for work.  There are also other conditions that you need to adhere to:

• Agree to the bike hire agreement
• Agree to an ownership option
• Insure the bike against theft and damage

What are the ownership options?

There are generally three options for ownership:

1. Own it now – pay either 18% or 25% of the bike’s value, depending on the cost of the bike
2. Own it later – pay a deposit of 3% or 7% of the bike’s value and nothing more.  You own the bike after four years or alternatively return the bike and receive your deposit back.
3. Return the bike – if you don’t want to keep the bike, you can return it after the initial hire period.

Your Employer

In order to purchase a bike through the Cycle to Work Scheme, your employer needs to have signed up to a specific scheme.   This is because your employer pays for the bike and any extras upfront and recoups the full cost, plus an extra percentage of its value on top.  Your employer takes the payments for the bike from your salary each month and once the final payment has been paid, the bike is all yours!

Spending Limit

Originally, the spending limit for the Cycle to Work Scheme was £1000.  The government have since announced, however, that they will allow cycle scheme providers and employers to work together to offer higher spend limits, allowing a range of different bikes, including various e-bikes, e-cargo bikes, family bikes to be accessed.  Click on the links below to each cycle to work scheme to see what they offer.

How many bikes can I get on the scheme?

If you need more than one bike for your commute to work (maybe a summer and winter bike), that’s allowed on the Cycle to Work Scheme. However, both bikes need to be for you, and you may not get another one on behalf of somebody else. 

Are there any additional fees?

Yes. All schemes will charge an initial admin fee in addition to the cost of the bike.   The additional cost will depend on the scheme and varies between 5%-15%.  The costs for the schemes are Bike2Work, 10%, Cycle Scheme, 10% and Green Commute Initiative, 5%.

What bikes do we sell?

At RideOn, we offer e-bikes for all cycling abilities, including e-mobility and e-cargo bikes, giving you a great selection to choose from.  We have two e-bike shops in Cornwall – Penzance and Newquay and you’re welcome to pop into either of them to see e-bikes or check them out online.  If you’d like to try a bike before you buy then book an appointment for a 15-minute test ride, or if you’d like to experience our e-bikes fully before committing, then we also offer e-bike hire.  There are some great cycle routes in Cornwall, offering some breathtaking scenery and getting out and about on roads and cycle paths, will give you a good feel for whether cycling to work will be something that you would like to do. 

Find out more

To find out more about each scheme, click on the links above. To find out which of our e-bikes would best suit your needs, please give us a call at either our Penzance shop on 01736 888777 or Newquay shop on 01637 811811 or fill in the form below and we’ll call you right back!