Cyclescheme
Cyclescheme 
Cyclescheme is the UK's number one provider of tax-free bikes for the Government's Cycle to Work initiativeCyclescheme is the UK's number one provider of tax-free bikes for the Government's Cycle to Work initiative
With this scheme you could save 50% of the cost of a bike and safety accessories through the cycle to work scheme. Your employer buys the bike and claims back the VAT and you sign a hire aggreement in which you pay through salary sacrifice. With a salary sacrifice you pay back the loan on your bike, accessories and safety equipment from gross rather than net pay for the hire period (usually 12 months), allowing you to benefit from income tax and NI relief. See www.hmrc.gov.uk/specialist/salary_sacrifice.pdf for a more detailed
For example, if you chose a £500 bike:
| Total cost of bike and accessories: | £500.00 |
|---|---|
| Net cost of bike and accessories, including finance and admin costs (if applicable): | £434.78 |
| Income tax saving over hire period: | £86.96 |
| NI saving over hire period: | £47.83 |
| Final cost of bike & accessories: | £299.99 |
| Total saving:** | £200.01 |
| Gross salary sacrifice, based on 12 month hire period (this should be the figure displayed on your hire agreement): | £36.23 |
| Net salary sacrifice, based on 12 month hire period: | £25.00 |
| Percentage saving over RRP: | 40% |
**Please note :A Fair Market Value payment is payable upon cessation of the agreement or at the end of the lease period