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Cycle to Work Scheme Calculator 2024/25

Calculate your real saving from the Cycle to Work scheme — income tax, NIC, effective net cost, and your monthly salary sacrifice vs take-home impact.

Cycle to Work Savings Calculator

Based on 2024/25 income tax and NIC rates. Salary sacrifice saves both income tax and employee NIC.

Total cost including helmet, lights, lock, etc. Typical range £500–£5,000

Used to calculate your income tax and NIC rates automatically

12 months is most common; 18 months for higher-value bikes

If not, you can still show them this calculation

Used to estimate CO₂ saved vs driving at 170g/km average

5 Cycle to Work Planning Tips

  1. Ownership transfer at end: HMRC guidelines allow an employer to transfer the bike to the employee at fair market value (typically 3–7% of original cost after 3+ years), or as a gift under the £50 trivial benefit exemption.
  2. Helmet, lights and locks all count: Safety equipment (helmets, locks, high-vis clothing, lights, panniers) qualifies alongside the bike — maximise your claim by bundling these.
  3. No formal value limit since 2011:The old £1,000 cap was lifted — but check your employer's scheme cap before ordering a high-end e-bike.
  4. E-bikes are fully eligible: Electrically assisted pedal cycles (EAPC) up to 250W qualify — ideal for longer commutes or hilly routes.
  5. CO₂ impact matters: Cycling instead of driving a typical car (170g CO₂/km) saves hundreds of kg of carbon per year — a compelling argument for employers on ESG targets.

How the Cycle to Work Scheme Works

Introduced in 1999, the Cycle to Work scheme lets employees access a bike and safety equipment through salary sacrifice — reducing their gross pay (and therefore income tax and NIC) over 12 or 18 months. The employer retains ownership during the agreement.

Who Can Use It?

Any employee whose employer has set up a scheme can participate. Self-employed sole traders cannot use salary sacrifice (they can claim a proportion of cycling costs as a business expense instead). Employees must earn at least the National Living Wage after the salary sacrifice deduction.

FAQs

Does the scheme affect my pension contributions?

Salary sacrifice reduces pensionable pay, which can slightly reduce pension contributions calculated on gross salary. Check your pension scheme rules before joining.

Can I use the bike for leisure as well as commuting?

Yes — the bike just needs to be used at least partly for commuting. There is no restriction on personal use alongside commuting.