The scheme works by allowing employees to benefit from a long term loan of bikes and commuting equipment such as lights, locks and panniers completely tax free. At the end of the loan period the employer is able to offer the sale of the bike at "Fair Market Value", typically 5 per cent of the original cost. The typical saving for an average tax-payer is between 38-45 per cent on the cost of the bike.

Employers benefit from fitter, more punctual, more wide-awake staff. Employees benefit from better health and better bikes because their money goes further. Everyone benefits from eliminated CO2 and reduced number of cars on the road. There are online calculators to help you see how much you may be able to save; just type in your salary, the cost of your new bike and the cost of accessories such as a helmet, lock, panniers and so forth.

• The Department for Transport has specifics for employers looking the implement the scheme


• CycleScheme is a cycle industry implementation of the Cycle to Work Scheme,
  linking independent bike stores with employers. It has a lot of information and
  guidance aimed at employees and employers, although some is specific just to CycleScheme


• CycleScheme Cycle to Work calculator

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