To participate in the cycle to work scheme, which operates as a salary sacrifice arrangement, you must meet the following criteria:

• Be 16 years of age or older.
• Earn at least the minimum wage after the salary sacrifice deduction from your pay.
• Receive payment and taxation through the Pay As You Earn (PAYE) system.

To enable employees to join the cycle to work scheme, employers must register with a specific scheme. Under this arrangement, the employer covers the initial cost of the bike and/or accessories, arranging for monthly payments to be deducted from the employee's salary in a tax-efficient manner. Encouragingly, employers can recoup the entire cost of the bike and receive an additional 13.8% of its value, making it a win-win situation for them.

The cycle to work scheme presents an excellent opportunity to acquire various cycling gear at significant discounts while spreading the cost. You can select from a wide range of accessories that contribute to a smooth cycling experience, including safety items such as helmets, bike lights, reflectors, mirrors, bells, and locks; essential accessories like cycling clothing, shoes, mudguards, panniers, backpacks, and child safety seats; and crucial components and parts such as pumps, puncture repair kits, cycle tool kits, tyre sealant, groupsets, wheels, cranksets, and cassettes. However, action cameras and GPS computers are not eligible for the scheme.

The cycle to work scheme traditionally had a limit of £1,000. However, the government has recently announced plans to allow scheme providers to collaborate with employers to offer cycle to work packages of higher value. While employers are not obligated to provide such packages, embracing the increased scheme limit promotes inclusivity and access to various bicycles, including e-bikes, cargo bikes, handcycles, and popular choices like Bromptons.

After obtaining a bike through the cycle to work scheme, it's crucial to actively use it for work-related journeys. As a general guideline, the Department for Transport suggests that approximately 50% of the bike's usage should be for commuting or work-related purposes. However, the scheme aims to encourage regular cyclists, so if you use the bike for commuting and also for leisure, evenings, and weekends, that's perfectly acceptable. In addition to regular usage, you need to agree to the terms of the scheme, which include an initial Hire Agreement, bike insurance to protect against theft and accidental damage, and an Ownership Option.

Selecting an Ownership Option is a vital decision at the end of the tax-efficient hire period. The recommended choice is the 'Own it later' option, as it ensures maximum savings (at least 25%). Depending on the bike's initial value (either under or over £500), you'll need to pay a deposit of either 3% or 7% of the bike's value. When the bike reaches four years old, you can take ownership. Alternatively, you can choose the 'Own it now' option, where you pay 18% or 25% of the bike's value, depending on its initial cost, to own it immediately. Lastly, if you decide not to keep the bike, you can return it.

The cycle to work scheme is designed for individual use, and employees cannot acquire bikes for anyone else. However, it's worth noting that an employee can get multiple bikes through the scheme as long as they are both used for the employee's commute. For instance, having a hybrid for regular commuting and a folding bike for city meetings or using one bike for summer and another for winter is acceptable. However, requesting both a gents and a ladies bike simultaneously would not be allowed.

Each cycle scheme typically includes a fee of 6-15% on top of the bike's cost. This fee is incorporated into the quotes provided by the scheme providers. Despite this additional cost, the savings achieved through the schemes outweigh it significantly. The specific fees for some popular cycle schemes are as follows:

• Bike 2 Work Scheme: 10%
• Vivup: 15%
• Green Commute Initiative: 6%
• Cycle Solutions: 12%