Cycle to Work Scheme Calculator 2025/26 | Bike Salary Sacrifice Tax Savings UK

Yes! While the bike must be used "mainly" for commuting to work (HMRC guidance suggests at least 50%), you're free to use it for leisure, shopping, school runs, and any other purpose. There's no requirement to track your journeys or prove usage.

The "mainly for work" rule is broadly interpreted, and HMRC has never challenged recreational use as long as the bike is also used for commuting.

If you leave your job before the hire period ends, you typically have two options:

• Pay the remaining balance: Your employer may deduct the outstanding amount from your final payslip, or you pay separately
• Return the bike: Some employers allow you to return the equipment

Check your hire agreement for specific terms. Some employers have insurance to cover this scenario.

Salary sacrifice reduces your gross salary for the duration of the scheme, which could affect mortgage affordability calculations. Some lenders may:

• Use your pre-sacrifice salary
• Use your reduced salary
• Add the sacrifice amount back when assessing income

If you're planning to apply for a mortgage soon, consider timing your Cycle to Work application accordingly, or speak to a mortgage broker who can advise on lender policies.

Yes, you can have multiple Cycle to Work bikes, subject to:

• Your employer's policy (some limit to one active scheme)
• Your salary sacrifice limit (usually 30-40% of salary maximum)
• National Minimum Wage rules (sacrifice can't reduce you below NMW)

Some people get a second bike for a family member, as long as they're also using it for their own commute occasionally.

No. Electric scooters (e-scooters) are NOT eligible for Cycle to Work because:

• They're not classified as bicycles
• Private e-scooters are currently illegal on UK roads and pavements
• Only rental e-scooters in government trial areas are legal

However, e-bikes (electric bicycles with pedals) ARE fully eligible for the scheme.

You can include cycling safety equipment and accessories that enable you to cycle, such as:

• Safety: Helmets, lights (front and rear), hi-vis clothing, bells
• Security: Locks, chains, GPS trackers
• Practical: Mudguards, panniers, baskets, child seats
• Clothing: Waterproofs, gloves, cycling shoes (if for cycling)
• Maintenance: Pumps, repair kits, tools (some schemes)

Note: Some providers have restrictions. Consumables like spare inner tubes may not be included.

Salary sacrifice reduces your gross salary, which can slightly affect:

• Workplace pension contributions: If based on a percentage of salary, your contributions (and employer match) may reduce slightly
• State Pension: Usually no impact as you'll still be above the Lower Earnings Limit

The pension impact is typically small (a few pounds per month) and is usually outweighed by the tax savings from the scheme. Some employers calculate pension on pre-sacrifice salary.

There's no government deadline - the scheme runs year-round. However:

• Your employer may have application windows (e.g., quarterly)
• Some employers run "Cycle to Work month" promotions
• Spring/summer tends to see higher demand and potentially longer waiting times

Check with your HR department or scheme provider for any employer-specific deadlines.