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What is a Cycle to Work scheme and its benefits for cyclists?

Updated: Dec 15, 2023

Many cyclists are curious to know what the Cycle to Work scheme is. And, put simply, it is a UK Government tax exemption initiative to encourage healthier, eco-friendly commuting to work to decrease pollution.


We’re pleased to announce that you can now get a Beameo bike on several different Cycle to Work schemes including Bike2Work, Cyclescheme and the Green Commute Initiative!


Buying an electric bike is a considerable expense, so why not save money, pay monthly and spread the cost of buying a new bike?


Want to buy a new bike on Cycle to Work but not sure how it all works? We’ll take you through the scheme and break things down so you can decide if it’s something that's right for you.

Man and woman riding Beameo bikes on their commute

What is a Cycle to Work Scheme?


The Cycle to Work Scheme was launched in 1999. It’s a Government tax exemption initiative that allows employers to essentially loan bikes and accessories to employees through a salary sacrifice agreement.


The cost of the bike is deducted from your monthly salary as a non-cash benefit which means you save on tax and national insurance. Your tax bracket, and whether you’re a basic, higher rate or an additional rate taxpayer will dictate the savings:

  • If you are a basic rate taxpayer you will save up to 30% on the cost of a new bike

  • Higher-rate taxpayers are eligible for up to a 42% saving

  • Additional rate taxpayers can save up to 47% on a new bike and equipment

How The Cycle to Work Scheme Works


Whilst it might seem a little complicated, the scheme itself is quite simple.


  • Your employer must be registered with a Cycle to Work Scheme (they can register if they aren’t).

  • You choose your bike and or accessories.

  • You then go through an application process.

What happens next will differ from scheme to scheme. It’s usually a very straightforward process. You may be given a voucher that will allow you to purchase a bike online or in a store. We have detailed how it works with Beameo below!


To be eligible for the scheme you must:


  • Be a full-time employee of an employer who participates in the scheme.

  • You must be over the age of 16.

  • Be a UK resident.

  • Have a National Insurance number.

  • There are certain salary requirements you will need to meet too, such as earning National Minimum or National Living wage.

At the end of your payment term, you will have a few different options. However, what these are will depend on which scheme you are with. The limit on what you’re able to spend on a bike and accessories will be set by your employer.


You won’t own the bike until the end of the hire period, but each scheme differs and they will usually give you ownership options once you’ve finished paying for the bike.

Woman sitting outside a pub with her fold up electric bike

Beameo on Bike2work


If your employer is registered for the Cycle to Work Scheme with Bike2Work, you’ll need to follow a few simple steps to get a new bike! If you’re not sure if your employer is with Bike2Work you can contact your HR department, or get in touch with Bike2Work via their website.


Bike2Work have put together this great guide on how it works, to run you through the process. They also have a very handy FAQ section with information that should help.


Beameo and Cyclescheme


To get a Beameo bike with Cyclescheme you need to go through a few steps (but don't worry, it's easy to do!). They have a page that takes you through how it works.


You can enter a few details such as when you get paid and how much you want to spend, and then use their retailer finder to select who you want to shop with. All you have to do then is complete your application and once it's been reviewed and signed off, you'll get your bike! Find all their FAQs here.


Green Commute Initiative


The Green Commute Initiative works in a similar way to Bike2Work. However, they don’t have a limit on the cost of the bike as many other schemes do. But you will still be subject to internal limits set by your employer, and you’ll need to make sure the cost of the bike doesn’t bring you below National Minimum Wage.


Similarly to the Bike2Work scheme, the Green Commute Initiative have an extensive FAQ section on their site as well as information on how their scheme works.


What will it cost?

We like to think our bikes are very affordable, which means monthly salary deductions should be very manageable! The Green Commute Initiative have a savings calculator on their website. You can use this to find out what your payments and savings will be.


Green Commute Initiative Calculator

As an example, we entered the price of our Buddy with an annual salary of £25,000 paid monthly.

An example of savings on the Green commute initiative Cycle to Work Scheme with a Beameo bike

Bike2Work Savings Calculator Bike2Work also have a savings calculator on their homepage. For this example, we used our Classic Bike which is £1350, an annual salary of £22,000 and a repayment term of 18 months.

Bike2Work savings calculator example used to show savings on a Beameo bike

If you input some details, you’ll be able to see how much you can save and what you’re likely to pay.

Cyclescheme Calculator


For this example, we've used our unbound, and a salary of £35,000 paid monthly. This has worked out the payments over 12 months and the 'own later' option (to save on fees).

You can find their calculator here.

How to use your Cycle to Work Voucher

Whether your employer has signed up with Bike2Work, Cyclescheme, or the Green Commute Initiative, getting your bike from Beameo is fairly straightforward!

  1. Choose which bike you like from our website

  2. Once your hire agreement is signed and the bike is paid for you will get a voucher (or eCertificate from Cyclescheme).

  3. Email us your voucher/certificate and we can process your order.

  4. We ship you your new Beameo!

For the full Green Commute Initiative process, see it on their website.


Things to consider


When your new bike arrives, here are a few things to think about!


Don’t forget bicycle insurance!


It’s worth getting bicycle insurance. You can check with your home insurer if they would cover your bike, or get a quote from a specialist insurer.


Insurance isn’t just for theft, it also offers cover for things like accidents, liability, accidental damage and more. Always check the terms and conditions and shop around to make sure you get the right cover for your circumstances!


Invest in a good lock


Even if you store your bike indoors, getting a good bicycle lock is advisable. If you’re going to be leaving your bike unattended anywhere, we would even recommend getting two! Make your bike as difficult as possible to steal - and always lock to an immovable object.

Man and woman sit at a coffee shop during their cycle ride with an electric bike

Give it a little TLC

Bike maintenance is important to keep your bike going for as long as possible! If you’re not sure what to look out for, visit your local bike shop for advice.

We’d recommend keeping an eye on tyre pressures and keeping your chain lubricated. We’ll have more detailed posts on this in future, so keep an eye on our blog.

 

Any questions? Let us know! Drop us an email on hello@beameo.bike and we’ll be glad to help.

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