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

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

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.

What's new? 

  • Coronavirus: in December 2020, the government flexed the qualifying Condition B, of the Cycle to Work schemes as a result of the restrictions placed on employees now forced to work from home.
  • This easement will apply to employees who have joined a scheme and have been provided with a bicycle or cycling equipment on or before 20 December 2020. The easement will be in place until 5 April 2022. The easement will 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 are available to you and your staff if you provide your workforce with eco-travel solutions?

A Salary Sacrifice scheme can be operated in conjunction with the cycle to work scheme. 

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 which need to also be considered


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