Bike to Work Scheme Guide & Savings Estimator
Understand the UK Bike to Work scheme and instantly estimate your Income Tax and National Insurance savings when purchasing a bike through salary sacrifice.
Estimate Your Cycle Savings
Enter the value of the bike and safety equipment you wish to purchase, along with your tax band, to see exactly how much you can save through the scheme.
Scheme Details
Enter your intended purchase value and tax information
Savings Breakdown
Calculated tax and NI reductions
Typical Scheme Savings
Example savings across different bike values and tax bands to help you understand the financial benefit at a glance.
| Bike Value | Basic Rate (28% Save) | Higher Rate (48% Save) | Add. Rate (47% Save) |
|---|---|---|---|
| £500 | £140.00 | £240.00 | £235.00 |
| £1,000 | £280.00 | £480.00 | £470.00 |
| £1,500 | £420.00 | £720.00 | £705.00 |
| £2,000 | £560.00 | £960.00 | £940.00 |
| £3,000 | £840.00 | £1,440.00 | £1,410.00 |
Bike to Work FAQ
Everything you need to know about the UK Bike to Work scheme, salary sacrifice, and eligibility.
The Bike to Work scheme is a UK government initiative that allows employees to purchase a bike and cycling safety equipment through a salary sacrifice arrangement. This reduces your gross taxable income, saving you money on both Income Tax and National Insurance contributions.
Your savings depend on your tax band. Basic rate taxpayers typically save 28% (20% Income Tax + 8% National Insurance), higher rate taxpayers save 48% (40% + 8%), and additional rate taxpayers save 47% (45% + 2%).
The government removed the previous £1,000 cap on the scheme in 2019. Employers can now set their own limits, with many providers offering schemes up to £5,000 or even higher, depending on the employer’s specific policy and the chosen scheme provider.
At the end of the hire agreement (usually 12 to 18 months), you typically have the option to purchase the bike for a fair market value fee, extend the hire period, or return the bike to the employer. Most employees choose to buy it for a nominal fee after the agreement ends.