To encourage people to drop the car and start cycling to work, the government created a little publicised incentive in 1999 to encourage employers to help their employees acquire tax-free bikes. In 2005 this scheme was re-branded as CYCLE TO WORK.

Under the Cycle to Work scheme, as part of the government’s green travel plan, you can get a tax-free bike, use it to commute, keep fit and do you bit for the environment all in one fell swoop.

To take advantage of the scheme you have to be in full time employment and on PAYE and your employer must be a member of one of the available schemes, but it’s easy for them to sign up if they are not already.

So How Does It Work?

First of all, get your employer to sign up for the scheme. You then choose a bike from an approved supplier, we at henley cycles are a member of both or and also (which is a closed scheme availible to nhs employees only) The bike is then bought by your employer who reclaims the VAT * You then take delivery of the bike for your exclusive use.

*The VAT free price is then deducted from your salary by equal instalments over a period of time (typically 12-18 months), but as you don’t pay Tax or National Insurance on the income you forego, this will give you further savings.

After the period of salary sacrifice, the employer may give you the option to purchase the bike at a ‘fair market price’, though this depends on the period you have had the cycle loaned to you.

The actual discount available to an employee will be based upon their own personal tax circumstances (higher tax payers get larger discounts) and whether their employer can recover all the VAT.

So What Next?

So, if this sounds to good an opportunity to miss, then we recommend that you take a look at or Here you will find all the information you’ll need to get you and your employer signed up to either of the Cycle To Work schemes. Remember, by purchasing your bike through us here at Henley Cycles, you not only get access to some quality bike brands with potential great savings, but great after sales service and care for your bike that you’d expect from a quality bike shop which aims to cater for all your cycling needs.

© 2011 Henley Cycles