Cycle to Work Scheme

Government schemes exists that can save you around 50% of the RRP of a new bike. It aims to make cycling more attractive as a legitimate way to commute to work by taking advantage of some new tax incentives. Big Bear Bikes works with many of these schemes to ensure that we can offer as many different types of Cycle scheme incentive programs as possible. This can make it a little confusing but they work essentially in the same way.

It is a form of salary sacrifice which means in exchange for a lower gross salary you would receive the non-cash benefit of a new bike & accessories, with a reduction in the RRP of your chosen bike by paying less in Income Tax & National Insurance.

Employee Benefits

Employee’s gain many benefits from Cycle scheme.

Save money
Cycling is an excellent way to save money as it has none of the running costs of a car, if you add to this the tax savings that you will also receive it provides a great incentive leaving you much better off in the long run.

Time Saving
Bikes can shoot right through congestion, parking and long queues in the morning, especially for inner-city workers, a bike could get you there just as fast door-to-door.

Healthy Lifestyle
Cycling to work can kick start your brain in the morning and ensure that you are more alert to tackle the day ahead, it also cuts the cost of gym membership and helps you take your mind off work when cycling home.

Carbon footprint
As more people become more conscious about our own carbon footprint, cycling to work will ensure you don’t contribute a single step towards your carbon footprint travelling to and from work.

Employer Benefits

Rewarding Employees
Give something back to your employees at no extra cost to yourselves.

Healthy Staff
Cycling boosts fitness & studies show that a regular cyclist can enjoy a fitness level of someone 10 years younger.

Stress Control
Regular exercise reduces stress and helps to maintain a healthy immune system.

An employee that cycles to work in the morning is more likely to be more alert and efficient than someone who does not. The connection between exercise and productivity is well documented and cycling to work is an ideal way to boost this.

Time Management
Cycling is more time efficient especially in bigger cities where there is traffic, cyclists can accurately anticipate arrival times and are much less affected by queues and traffic.

Money Saver
For every £500 an employee hires on the scheme, the employee saves £64 in NI contributions. The employer may also save on salary related pensions and VAT.


Frequently Asked Questions

Who does the bike belong to?
It belongs to the company and is hired to the employee for the term of the Hire Agreement.

What happens at the end of the scheme?
There are several options open to the employer regarding transferring ownership and allowing ongoing use of the bike. Call us 01751 474220 for more information,

Does the employee ever own the bike?
At the end of the agreed hire period the employer has the opportunity to sell the employee their bike back to them at fair market value, this can be calculated by clicking this link

What happens if the employee leaves his job before he has finished paying for the bike and accessories?
The payment for the bike and accessories is formalised by a Hire Agreement regulated by the Consumer Credit Act. This is a non-cancellable legal agreement. If the employee leaves his employment through any reason during the sacrifice period, then the employer will require the employee to pay compensation. This generally is used to cover the employer’s costs which haven’t been offset due to the non-completion of the salary sacrifice arrangement. This compensation will be taken from your final month’s net pay and will not qualify for PAYE and NIC savings.

You have not answered my question, what now?
If you find there are things that are still not clear to you, please telephone 01751 474220 or alternatively email and we will do our best to answer any questions you may have.