Cycle to Work Scheme Savings Calculator UK 2025/26

Cycle to work scheme savings UK 2025/26 — save 28-47% on bike + accessories. £1,000 bike costs £530-£720 real money for

Quick answer: Cycle to Work scheme saves 28% (basic rate) or 42% (higher rate) via salary sacrifice. A £1,000 bike + accessories costs higher-rate workers approximately £580 net real money over 12 months.
Mustafa Bilgic
Reviewed by Mustafa Bilgic · UK Calculator Editor ·

Calculator

The Cycle to Work scheme lets you sacrifice gross salary for a bike + accessories from your employer's scheme provider. Since 2019, the £1,000 cap was removed — bikes up to ~£3,000-£4,000 are now common. This calculator shows your exact saving for any bike value.

How cycle to work scheme savings calculator works in 2025/26

How Cycle to Work scheme works in 2025/26:

  1. Your employer joins a scheme (Cyclescheme, Bike2Work, GCI, etc.)
  2. You choose bike + accessories from approved retailers
  3. Cost spread over 12 months as salary sacrifice
  4. You save your full marginal rate (income tax + NI) on each monthly sacrifice
  5. End of scheme: extension period (typically 3 years free) then "fair market value" transfer (8-25% of original price depending on age + condition)

2025/26 savings by tax band:

Tax bandIncome taxNITotal saving
Basic rate20%8%28%
Higher rate40%2%42%
Additional rate45%2%47%

Eligible items: Bicycle, electric bike (e-bike), tandem, folding bike, plus accessories: helmet, lights, locks, panniers, mudguards, child seats, GPS computers, waterproofs (must be safety-related — no Lycra fashion gear).

Worked example: £800 commuter bike + £200 accessories, basic rate

£1,000 sacrificed over 12 months = £83.33/month gross. Saves £23.33/month tax+NI. Real cost £60/month for 12 months = £720 total. Plus end-of-scheme £80 transfer = £800 total real cost (vs £1,000 retail).

Gross: £30,000 → Take-home: £25,119.60/year (£2,093.30/month)

Worked example: £3,000 e-bike, higher rate

£3,000 sacrificed = £250/month. Saves £105/month tax+NI. Real cost £145/month = £1,740 total. Plus £240 transfer = £1,980 total real cost (vs £3,000 retail). 34% saving.

Gross: £60,000 → Take-home: £41,513.60/year (£3,459.47/month)

Worked example: £500 starter bike, basic rate

£500 / 12 = £41.67/month. Saves £11.67. Real cost £30/month = £360 total. Transfer £40. Total £400 real cost. 20% saving on a starter bike.

Gross: £25,000 → Take-home: £21,520.00/year (£1,793.33/month)

Frequently asked questions

Is there still a £1,000 cap on Cycle to Work?
No — the £1,000 limit was removed in 2019. Now any bike value is allowed if your employer's scheme provider supports it (some still cap at £4,000-£5,000 for FCA Consumer Credit reasons). Check with your scheme.
Can I use it for an electric bike (e-bike)?
Yes — e-bikes are fully eligible as long as they meet UK pedelec rules (pedal-assist only, max 250W motor, max 15.5mph cut-off). Most major e-bike brands (Specialized, Trek, Cube, Riese & Müller, etc.) participate.
What's the end-of-scheme transfer fee?
HMRC sets fair market value (FMV) for tax purposes: 1 year old 18-25%, 18 months 16%, 2 years 13%, 3 years 12%, 4 years 7%. Many schemes use a 36-month "extension" period to lower transfer to ~7% — known as the "Cyclescheme exit method". Check your provider.
Can I salary sacrifice if my salary is near minimum wage?
No — your post-sacrifice salary must remain above National Minimum Wage. NLW 2025/26 is £12.21/hour (21+) ≈ £24,242 full-time. If salary is £25k, you can't sacrifice more than £750/year (£15/week × 50 weeks).
What if I leave my employer mid-scheme?
You owe the remaining sacrifice value as a one-off deduction from final salary (often net pay, no tax saving). If final salary doesn't cover it, you may have to pay direct. Check your scheme's leaver terms before joining.
Can I use it for two bikes?
Some employers allow ONE active scheme at a time; others allow simultaneous schemes (e.g. one for you + one for partner if you're a couple). Generally there's a 12-month minimum cooling-off between schemes. Check provider rules.
Does the scheme save my employer money too?
Yes — employer saves 13.8% NI on every £ sacrificed. Many enlightened employers pass this saving back as additional benefit (e.g. "free transfer at end" or accessories topped up). Ask your HR if your employer rebates the NI saving.

Official UK Sources

Last reviewed: May 2026 against HMRC 2025/26 rates.

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