The Cycle to Work scheme permits an employer to provide cycles and/or associated safety equipment to employees tax free.

This is a freeview 'At a glance' guide to the Cycle to Work scheme.

At a glance

  • Ownership must not transfer to the employee during the loan period. (Condition A).
  • The equipment must be used mainly (>50%) for qualifying journeys i.e. all or part of journeys between home and workplace or between workplace and workplace (Condition B).
  • Equipment must be offered to all employees, and no section of the workforce may be excluded (Condition C).

There are different types of ways that cycles can be provided:

  • The loan of cycling equipment to employees.
  • Provision of pool cycles for general use by employees.
  • Provision of an employee loan: the employee purchases their own equipment.

Employers may use their own cycles or rent cycles for employee use.

Coronavirus easement: 20 December 2020 to 5 April 2022

  • In December 2020, the government flexed Condition B of the Cycle to Work schemes as a result of the restrictions placed on employees forced to work from home.
  • This easement applied to employees who had joined a scheme and been provided with a bicycle or cycling equipment on or before 20 December 2020. The easement was in place until 5 April 2022.
  • The easement did not apply to employees joining a scheme on or after 21 December 2020
  • See Cycles & Cyclists' safety equipment.

Useful guides on this topic

Cycles & cyclists' safety equipment
What are the full range of tax breaks available to you and your staff if you provide your workforce with eco-travel solutions?

Salary sacrifice & optional remuneration schemes (OPRA)
What is a salary sacrifice or optional remuneration arrangement? How is it taxed?

Employment-related loans
An employer may make a tax-free loan to an employee for a sum of up to £10,000 per year. There are special rules for director and company participators that also need to be considered

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