Offer a Cycle to Work scheme employees will actually use
Offer cost-effective commutes, support employee wellbeing and encourage greener travel with a Cycle to Work salary sacrifice benefit from Perkbox.
Featuring a wide range of bike and cycling equipment, our Cycle to Work scheme makes it easier for employees to spread costs through payroll while helping employers build a more valuable benefits package.
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Help your people save on their daily commute
Rising commuting costs put real pressure on employees. A Cycle to Work scheme helps employees spread the cost of bikes and cycling equipment through manageable payroll reductions, making commuting more manageable without large upfront costs.
For employers, Cycle to Work salary sacrifice can strengthen your benefits package while supporting recruitment, retention and employee wellbeing goals.
- Reduces the cost of public transport, fuel and parking
- Payroll reductions help employees spread costs
- National Insurance contribution savings to be made for employers
- With our Cycle to Work scheme, Bridgewater Community Healthcare NHS Trust saved £3,700 through tax and National Insurance contributions.
Cycle to Work salary sacrifice works by allowing employees to exchange part of their gross salary for bikes and eligible cycling equipment through payroll reductions over an agreed period.
Because reductions are made before Income Tax and National Insurance contributions are applied, employees may benefit from tax efficiencies depending on their personal circumstances. In the Bridgewater Community Healthcare NHS Trust scheme alone, employees saved £3,700 through tax and National Insurance contributions.
For employers, this can also create potential Employer National Insurance savings while helping employees access healthier and more affordable commuting options.
You can use our Cycle to Work calculator above to estimate potential employee and employer savings before launching the scheme.
How does the Cycle to Work scheme work?
Our Cycle to Work programme enables employees to spread the cost of bicycles and cycling equipment through salary sacrifice reductions over a set period. The scheme is designed to be flexible, accessible and simple to manage for both employers and employees.
- Manageable monthly instalments via payroll
- No credit checks or upfront costs
- Easy to manage through a single platform
- Designed in line with HMRC guidance and FCA authorised
Please note: salary sacrifice cannot take employees below the National Minimum Wage or National Living Wage.
A Cycle to Work scheme is offered through a salary sacrifice arrangement, meaning employees agree to temporarily reduce part of their gross salary in exchange for a bike and eligible cycling equipment.
Employers can choose scheme limits and control how the programme operates internally, while employees repay the cost through payroll reductions over an agreed period.
The scheme is aligned with HMRC guidance and FCA authorised, helping employers confidently offer a compliant salary sacrifice bike scheme.
Perkbox helps simplify administration by bringing everything into one easy-to-manage platform for HR teams and employees alike.
What's included with Perkbox
Offer one of the UK’s largest ranges of bikes and equipment
Our Cycle to Work benefit gives employees access to an extensive range of bikes, accessories and cycling equipment through both online retailers and local bike shops. Whether employees are looking for commuting bikes, e-bikes, adaptive bikes or essential safety equipment, Perkbox helps make cycling more accessible through salary sacrifice.
- Shop online or in-store at 1,300+ retailers
- E-bikes, adaptive bikes, safety equipment and more
- Flexible options available at the end of the term
Employees can access a wide range of bikes and cycling equipment through the Cycle to Work scheme, helping make commuting more practical and affordable.
The scheme includes traditional bikes, e-bikes, adaptive bikes, helmets, locks, lights and other safety accessories. Employees can browse products online or use local bike shops through Perkbox’s retail network of more than 1,300 partners.
Flexible end-of-term options also help employees continue using their equipment after the initial hire period, making the scheme more accessible for long-term commuting and wellbeing support.
Encourage greener ways to get to work
Cycle to Work schemes can play an important role in supporting sustainability and environmental goals while giving employees a benefit they actively use.
Helping employees reduce car journeys and adopt greener commuting habits allows businesses to support lower-emission travel in a practical and visible way.
- Reduce your organisation’s carbon footprint
- Support greener commuting habits
- Strengthen recruitment with sustainability-led benefits
- Show employees your commitment to environmental responsibility
Many businesses now use employee benefits to support wider sustainability and ESG initiatives.
Cycle to Work schemes help reduce reliance on cars and public transport while encouraging lower-emission commuting alternatives. They also provide a practical way for employers to demonstrate environmental commitments employees can directly engage with.
For employers, sustainability-led employee benefits can strengthen employer branding, improve recruitment positioning and support broader workplace wellbeing initiatives at the same time.
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Promote healthy habits across your team
Cycling to work can help employees build healthier everyday routines while improving energy, focus and overall wellbeing.
By helping employees access bikes and cycling equipment more affordably, employers can support healthier lifestyles through a practical benefit employees use regularly.
- Encourage regular physical activity
- Help boost energy, mood, and focus at work
- Support a culture of wellbeing
Employee wellbeing continues to be a major focus for employers, particularly as businesses look for ways to support both physical and mental health in practical ways.
Cycling to work can help employees incorporate regular exercise into their daily routines while reducing commuting stress and improving energy levels before the workday begins.
Cycle to Work salary sacrifice schemes are particularly effective because they combine wellbeing support with meaningful financial value, making it a benefit employees can use consistently over time.
Help your people save on their daily commute
Cut commuting expenses by offering lower-cost alternatives for employees who travel into the office and save money through salary sacrifice.
- Reduces the cost of public transport and fuel
- Avoid rising expenses from car upkeep and parking
- National Insurance contribution savings for you and your team
Success story
"I would say Perkbox is the HR system that gives the most value, purely because it gives employees the freedom to choose what they want."
Frosso Skoteinioti
People Operations Manager
Success story
"It's one of our only benefits that is completely global and for us that’s really important. When we launch something new, we try to think — can we do it through Perkbox?"
Louise Sparkes
Senior People & Culture Manager
Success story
"From a culture and engagement perspective, one really important thing we have here at Open GI is ensuring it feels like a level playing field across the company — that no parts of the business feel alienated from the rest of the company."
Nick Sturdy
Internal Communications Executive
Success story
"Prior to Perkbox we had a degree of inconsistency and a lack of transparency around the type of benefits that we were able to provide. That is something Perkbox has most definitely solved for us."
Hayley Pearce
Organisational Development Manager
Success story
“It’s something extra that people really appreciate. There are so many different choices on Perkbox they like to engage with, and the platform is very easy to navigate.”
Lucie Bendakova
HR Manager
Success story
"The challenge was to find a really good benefits package that would reward people consistently and would suit everybody’s likes and needs, based on where they were. It was really difficult to do that before Perkbox."
Gemma Wells
Digital Programme Manager
Success story
"Every single metric at Traveltek has gone up since we got Perkbox."
Cressida Sergeant
Chief Commercial Officer
Ready to offer a Cycle to Work scheme?
Support employee wellbeing, reduce commuting costs and help your people access bikes more affordably with a Cycle to Work scheme from Perkbox.
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Cycle to Work FAQs
How does Cycle to Work salary sacrifice work ?
A salary sacrifice is where an individual gives up the right to receive part of their cash pay due under their contract of employment. In the case of the Cycle to Work Scheme the individual agrees to accept a lower amount of salary in return for the organisation providing a bike and/or cyclist safety equipment for their commute to and from work. The Gross Salary reductions and End of Agreement Fee deduction at the end of the scheme will be made directly from employees' salary through Payroll.
How do employees make savings?
As the salary sacrifice reduction is taken from your gross salary, employees will save Income Tax, National Insurance and Pension Scheme contributions (if they are a member of a Pension Scheme) on the amount of salary sacrifice they pay. Payslips will show the gross salary reduction amount and savings will depend on their own personal tax situation. The HMRC website can be used for further information Cycle to Work scheme implementation guidance for employers - GOV.UK.
What is included in a Cycle to Work scheme?
A Cycle to Work scheme can include bikes, e-bikes, adaptive bikes and eligible cycling safety equipment such as helmets, locks and lights. Perkbox provides access to one of the UK’s largest Cycle to Work retail networks, including online retailers and local bike shops.
What is the maximum value that employees can order through the scheme?
Your organisation can set a maximum value limit for Cycle to Work purchases. The combined order value of bikes and/or cyclist safety equipment cannot exceed this maximum value limit at any one time. When purchasing a bike and/or cyclist safety equipment on our website, this limit will be displayed at the top of the page whilst employees are browsing and only bikes and/or cyclist safety equipment within this limit will be displayed for them to select from. If employees choose to place an order using a quote from a bike shop, the maximum value limit set by your organisation will display when they add the quote value. Please note that the salary sacrifice cannot take employees below National Minimum Wage/National Living Wage, so the amount they have available may be lower than this limit.
Can employees top up and pay the balance personally if they want a bike and/or cyclist safety equipment over the limit set by my organisation?
No. The bike and/or cyclist safety equipment value cannot exceed the limit set by your organisation and no top ups are permitted.
Can employees order more than one bike through the Cycle to Work scheme?
You can order up to two bikes through the scheme, but they must both be used for you to commute to and from work. For example, you may get a train to work and require a bike at either end of the train journey, to cycle between your home and place of work. Please note, the combined total value cannot exceed the limit set by your organisation at any one time.
Who is eligible to join the scheme?
All individuals on PAYE payroll are eligible to apply. Salary reductions must not take you below National Minimum Wage/National Living Wage or exceed your organisation’s scheme limit. Please note that those engaged either on a ‘zero hours’ contract or on a casual/temporary basis for a period not exceeding three weeks will not be eligible to join.
What happens if the bike gets stolen, lost or damaged before the end of the agreement?
It is important that you make suitable provision to safeguard the bike against loss damage or theft. You may take a specialist insurance policy, but it may be easier to add the bike to your usual household policy. If you are making a claim, some specialist insurance companies may ask for proof of ownership. It is important at the time of taking insurance that you make the insurance company aware the bike is part of a hire agreement and who the owner of bike is (you will find this information on your hire agreement). If the bike is stolen, lost or damaged, your salary sacrifice will continue until the end of the agreement and the End of Agreement Fee will be deducted.
What happens if an employee leaves their job before my organisation has recovered the bike cost through salary sacrifice?
Under the terms of the salary sacrifice agreement you will agree to settle all outstanding monies before you leave. The outstanding balance will be deducted from your final net salary payment, after tax and National Insurance contributions. This is because you will no longer be riding your bike to your original workplace meaning you are no longer eligible for the tax saving. Subject to payment for the minimum period of hire, there is also the option to return it to your ex-organisation (among a number of other options). Please note, it is not possible to transfer the agreement from one organisation to another.
Qualifying journeys are defined by HMRC as travel between an employee home and their usual place of work. SME HCI Limited (trading as Perkbox), registered in England and Wales. Registration 5558651
SME HCI Limited is authorised and regulated by the Financial Conduct Authority. FCA Registration Number 626422.
Vivup Financial Services is authorised and regulated by the Financial Conduct Authority. FCA Registration Number 59810
*Savings of up to 42% are based on a higher-rate taxpayer (40% income tax + 2% National Insurance) participating in the Cycle to Work scheme via salary sacrifice. Actual savings will vary depending on individual tax circumstances, salary, location and the value of the bike and accessories selected. The scheme is subject to eligibility criteria, including minimum earnings thresholds after salary sacrifice reductions. Bike use must include commuting. 18+, UK only, T&Cs apply