Sonder Bikes
How does a Cycle to Work scheme work?
A Cycle to Work scheme is a salary sacrifice arrangement. You select a bike and accessories, apply through your employer, redeem your certificate, and repay through pre-tax salary deductions.
Cycle to Work Schemes
A Cycle to Work scheme (also known as a bike to work scheme or cycle 2 work) allows employees to spread the cost of a bike and accessories through salary sacrifice, often saving between 25% and 42%. It is a great way to unlock your dream bike.
Cycle to Work Scheme – Save on Your New Bike
If you're wondering “how does Cycle to Work work?” or “how much can I save?”, our FAQs below explain everything — from eligibility and electric bikes to calculators and repayments.
Cycle to Work – Understanding the Terms
Many people confuse Cycle to Work with its various providers or abbreviations. Here’s a quick guide to clarify:
- Cycle to Work (C2W) – The UK government-backed scheme that lets employees buy a bike and equipment tax-free through salary sacrifice.
- Provider – The company that administers the scheme, calculates your savings, and handles paperwork. Examples include Cyclescheme, Green Commute Initiative (GCI), and Cycle2Work.
- Employer – Your company, which purchases the bike and leases it to you under the scheme rules.
- Salary Sacrifice – The mechanism through which pre-tax salary is reduced to pay for the bike, generating Income Tax and National Insurance savings.
In short: Cycle to Work is the rule, your employer makes it happen, and the provider administers it for you.
How a Cycle to Work Order Works
The Cycle to Work process involves four key parties: you, your employer, the provider, and HMRC.
- Select your bike & accessories: Choose the items you want to purchase through the scheme. Tip, it's not just bikes!
- Apply via your employer: Your employer submits the order and liaises with the provider.
- Provider administration: The scheme provider calculates your savings, issues a voucher, and handles the legal paperwork.
- Salary sacrifice & delivery: Your pre-tax salary is reduced, you benefit from tax & NI savings, and the bike is delivered. Ownership remains with your employer until the end of the hire period.
The process looks a little like: Employee → Employer → Provider → HMRC → Bike Delivered
Cycle to Work Calculator – Estimate Your Savings
A Cycle to Work calculator helps you estimate your monthly payments and potential savings based on salary and tax band.
- Estimate salary sacrifice deductions
- Compare real cost vs retail price
- Budget before applying
Calculators provide estimates only. Final figures depend on employer scheme rules and end-of-hire arrangements.
Cycle to Work Savings – Retail vs Effective Cost
Compare the retail price of the bike with the effective cost to you through a Cycle to Work scheme.
Example Cyclescheme (provider) Calculation – £2,799 Sonder El Camino electric Bike
This example is based on a £32,000 salary and a Sonder El Camino electric gravel bike package valued at £2,799. Figures are illustrative and based on a typical Cyclescheme calculation.
| Description | Amount |
|---|---|
| Bike Price | £2,799 |
| Monthly Gross Deduction | £233.25 (12 months) |
| Monthly Tax & NI Savings | − £109.63 |
| Effective Monthly Cost | £123.62 |
| Ownership Fee (after 12 months) | + £195.93 |
| Total Paid by Employee | £1,679.40 |
| Overall C2W Saving | 40% |
In this example, the employee spreads the cost of her new Sonder via salary sacrifice and benefits from Income Tax and National Insurance savings. A small ownership fee may apply depending on scheme rules. You can run your own numbers by visiting the Cyclescheme calculator (Other providers are available!).
Please note:
- Figures are estimates only.
- Savings depend on salary, tax band, and employer scheme.
- Ownership fees vary by provider and hire arrangement.
Extended Hire & Fair Market Value Explained
With most Cycle to Work schemes, your employer hires the bike to you for an initial period (commonly 12 months). During this time, you repay the cost via salary sacrifice, benefiting from Income Tax and National Insurance savings.
Who owns the bike during the scheme?
Legally, the bike belongs to your employer throughout the hire period. This is why schemes are structured as a lease rather than a purchase.
What happens at the end of the hire period?
At the end of the initial hire, most scheme providers offer an extended hire option. Instead of transferring ownership immediately, you continue using the bike for a small or zero additional cost.
What is Fair Market Value (FMV)?
Fair Market Value represents the bike’s reasonable resale value at the time ownership is transferred. HMRC guidelines require that bikes cannot simply be “given away” for free.
Why do extended hire arrangements reduce the ownership fee?
Because the bike continues to depreciate during the extended hire, its Fair Market Value decreases. This usually results in a much lower ownership fee compared to transferring ownership after just 12 months.
How does this affect my overall savings?
A reduced ownership fee means your total cost can be significantly lower, which is why many Cycle to Work calculators show savings closer to 35%–42% rather than just 32%.
- Salary sacrifice reduces taxable income
- Tax & National Insurance savings apply
- Extended hire lowers Fair Market Value
- Lower FMV = lower ownership fee
Please note: Ownership options, fees, and extended hire terms vary between scheme providers. Always check your provider’s specific conditions.
What’s the Difference Between Retail, Cycle to Work & Finance?
| Option | How You Pay | Savings | Who It’s For |
|---|---|---|---|
| Retail Purchase | Pay upfront (card, cash, PayPal) | No tax savings | Anyone |
| Cycle to Work Scheme | Salary sacrifice via employer | Save 25–42% (tax dependent) | UK employees enrolled in a scheme |
| Bike Finance | Monthly instalments via credit provider | No tax savings | Eligible applicants (credit check required) |
Cycle to Work Scheme FAQs
How much can I save with a bike to work scheme?
Most employees save between 25% and 42%, depending on their tax band. A Cycle to Work calculator can provide a personalised estimate.
Can I buy an electric bike on the Cycle to Work scheme?
Yes. Electric bikes (e-bikes) are eligible on most schemes, provided they meet commuting-use criteria.
Where can I redeem my Cycle to Work certificate?
Certificates can be redeemed with participating retailers online or in-store. Always check your retailer accepts your scheme provider.
Is Cycle to Work the same as bike finance?
No. Cycle to Work is an employee benefit using salary sacrifice. Finance is a personal credit agreement with interest and credit checks.
Cycle to Work Scheme FAQs
Am I eligible for a Cycle to Work scheme?
Check with your employer whether they operate a Cycle to Work scheme. If they don’t currently run one, we can provide the lease documentation so your employer can still purchase a bike through us.
Cycle to Work schemes are generally open to UK residents employed by participating organisations.
How does a Cycle to Work scheme work?
A Cycle to Work scheme is a government-backed employee benefit. Your employer purchases the bike and equipment, then leases it to you through an interest-free salary sacrifice arrangement.
This allows you to spread the cost through pre-tax salary deductions, resulting in Income Tax and National Insurance savings.
The bike remains the property of your employer until the end of the lease period, so it’s important to understand your employer’s end-of-hire terms.
How do I place a Cycle to Work order?
If you already have a voucher:
- Order your bike online
- Select Cycle to Work at checkout
- Add your scheme provider in the order notes
- Provide your voucher and proof of ID when requested
Once your voucher is verified, your bike enters the build queue.
Need a quote?
Email support@alpkit.com with:
- Your chosen bike and/or equipment
- Your scheme provider
How long does the Cycle to Work process take?
You must provide your voucher within 28 days of placing your order. Orders may be cancelled if vouchers are not received and no delay is communicated.
What can I buy with a bike to work scheme?
You can purchase any Sonder bikes, along with Alpkit cycling clothing and eligible equipment, through the scheme.
Which Cycle to Work scheme providers do you accept?
We accept vouchers and certificates from providers including:
- Cyclescheme
- Green Commute Initiative (GCI)
- Cycle2Work (Halfords)
- Cycle2Work RG (Halfords)
- Workplace Bikes (Halfords)
- VIVUP (SME HCI Ltd)
- C2W Support
- Enjoy Benefits
- CycleSolutions
- CyclePlus (SalaryPlus)
- Evans Cycles (selected employers only)
- Gemelli Employee Benefits
We also accept direct purchase orders from employers and can provide documentation if your employer does not run a dedicated scheme.
How much can I save with a Cycle to Work scheme?
Savings typically range between 25% and 42%, depending on your tax band.
Use a Cycle to Work calculator to estimate your personal savings and monthly deductions.
Is Cycle to Work good for commuters?
Yes! The Cycle to Work scheme is ideal for anyone who rides to work regularly. By spreading the cost of a bike and essential commuting equipment through salary sacrifice, you benefit from Income Tax and National Insurance savings, making your commute more affordable.
Using a bike can also reduce travel time, lower transport costs, improve fitness, and reduce your carbon footprint — all while enjoying savings of 25%–42% through the scheme.
What equipment can I include in my Cycle to Work voucher?
HMRC guidelines recommend a common-sense approach. Items that improve safety, security, or commuting practicality are usually permitted, including:
- Lights
- Bags and racks
- Cycling clothing
- High-visibility items
- Pedals, saddles, tyres
- Stems and seat-posts
- Replacement safety-related bike parts
- Maintenance items (pumps, puncture kits, multi-tools)
Workstands are typically excluded.
My employer has a £1,000 limit. Can I top up with cash?
No. Cycle to Work vouchers cannot be topped up with personal payments.
Many employers are unaware that HMRC no longer enforces a £1,000 limit. Speak with your employer about increasing the voucher value.
Can I pay the difference if my voucher is lower than the bike price?
No. Cycle to Work orders must be paid entirely using the voucher. If your certificate value is insufficient, you’ll need to request a higher-value voucher from your employer.
What happens if my certificate value is higher than my order?
Refunds are not permitted. However, you may add eligible accessories to use the remaining balance.
Who legally owns the bike?
Your employer remains the legal owner until the lease period ends. At that point, your employer may offer ownership transfer under their scheme rules.
Can I change my bike after receiving my voucher?
Yes — provided the build process has not started.
Can I request component upgrades or custom builds?
Yes. Please contact us for bespoke build options.
When will my bike be built and shipped?
Bikes are scheduled for build once your voucher is received and verified. Current build times are shown on the product page.
Delivery typically takes 2–5 days within the UK.
Can I use my Cycle to Work voucher in-store?
Yes — simply bring your voucher with you.
Can I pay by card and be refunded once my voucher arrives?
No. Cycle to Work purchases must be paid using the voucher from the outset.
I’ve received my voucher. When can I collect my bike?
Once we receive and verify your voucher, your bike enters the build queue. We’ll notify you when it’s ready for collection or delivery.
What if I change my mind?
After signing the hire agreement, you have a 14-day cooling-off period. After this period, the agreement is typically non-cancellable.