The UK Cycle to Work scheme is a government salary sacrifice tax exemption letting PAYE employees save 28%–47% on bikes, e-bikes, and bike-share rides in 2026.
Introduced in 1999 under section 244 of the Income Tax (Earnings and Pensions) Act 2003 (HMRC guidance: EIM21664), the scheme has been used by over 1.6 million UK employees across 40,000+ employers. This complete 2026 guide answers the 10 most common questions about how the scheme works for employees and employers, eligibility, savings, what bikes qualify, end-of-hire options, bike-share access through Lime, Forest, Voi, Beryl, and Santander Cycles, and how to choose a provider.
Who this is for: UK employees considering Cycle to Work, and HR / benefits / sustainability leads at UK employers evaluating the scheme.
CHAPTERS
0:00 – 1:26 – What is the UK cycle to work scheme?
01:27 – 2:53 – How much can you save with the Cycle to Work scheme?
2:54 – 4:18 – Who is eligible for the Cycle to Work scheme?
4:19 – 5:22 – Do you have to cycle to work every day to qualify for the Cycle to Work Scheme?
5:23 – 7:03 – What happens at the end of the Cycle to Work hire period?
7:04 – 8:19 – What types of bikes can you get through Cycle to Work?
8:20 – 9:10 – Can you use Lime, Forest, or Santander Cycles through Cycle to Work?
9:11 – 10:44 – Why should employers offer a Cycle to Work scheme?
10:45 – 12:11 – Does Cycle to Work cost employers anything?
12:12 – 14:21 How should employers choose a cycle to work provider?
KEY FACTS REFERENCED
– Cycle to Work introduced 1999, ITEPA 2003, section 244 (HMRC EIM21664)
– 1.6 million UK employees have used the scheme; 40,000+ UK employers offer it
– Employee savings: 28% (basic rate) / 42% (higher rate) / 47% (additional rate)
– Employer National Insurance saving: 15% – £150 per £1,000 sacrificed
– Health benefit: 2.1-4.5 fewer sick days per cycling employee per year (Cycling UK)
– Bike-share included under HMRC EIM21664 (Lime, Forest, Voi, Beryl, Santander Cycles)
– E-bike (EAPC) limits: 250W motor, pedal-assist only, 15.5mph cutoff (Road Traffic Act 1988, s.192)
– End-of-hire valuation table: HMRC EIM21667A
– FCA authorisation required for schemes above £1,000 (this is a regulatory threshold, not a purchase cap)
SOURCES & FURTHER READING
– HMRC EIM21664 (scheme guidance): https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim21664
– HMRC EIM21667A (end-of-hire valuation): https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim21667a
– ITEPA 2003, section 244: https://www.legislation.gov.uk/ukpga/2003/1/section/244
– Cycle to Work Alliance: https://www.cycletoworkalliance.org.uk
– Cycling UK health research: https://www.cyclinguk.org
– Compare UK Cycle to Work providers (2026): https://www.dashrides.com/blog/best-cycle-to-work-scheme-compare-the-top-uk-providers
– Bike-share via Cycle to Work (Dash Flex guide): https://www.dashrides.com/blog/bike-share-cycle-to-work-guide
ABOUT DASH RIDES
DASH Rides is a UK Cycle to Work provider offering voucher-free salary sacrifice on bikes, e-bikes, accessories, and uniquely bike-share rides with Lime, Forest, Voi, Beryl, and Santander Cycles through Dash Flex. Dash is FCA-authorised for transactions above £1,000.
Last updated: May 2026
Applies across England, Wales, Northern Ireland, and Scotland (which uses six income tax bands).
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