Sorry. You need to upgrade your browser

You are using Internet Explorer 8

This is considered an out of date browser. This website has been developed with modern browsers in mind to allow it to display at its best in a wide variety of viewing situations - including mobile viewing. But we haven't supported older browsers like IE8. Please upgrade to the latest version of Internet Explorer - or try Mozilla Firefox or Google Chrome. Both are excellent browsers.

Thank you.

Chartered Certified Accountants
and Business Advisors

01530 267320

Cycle to work scheme

The cycle to work scheme allows your business to provide employees, including directors, with the loan of a bicycle and cycling equipment, but without it counting as a taxable benefit-in-kind. The conditions are that:


  • All your employees must be offered availability to a bicycle.

  • They must not own it.

  • They must mainly use it for commuting.


HMRC takes a relaxed approach to the last condition and doesn’t expect you or your employee to keep any sort of record of usage.


There are now ready-made cycle schemes that you can search online. This works by a scheme provider owning the bicycle and equipment and hiring them out to you as an employer, and in return you make them available to all staff. The provider will even give you the hire contract required to give to your employees.


The price of the bicycle is not capped by the tax exemption; however, the Office of Fair Trading says that any hire agreement for the use of one is covered by the Consumer Credit Act 1974. To prevent each scheme having to apply for a consumer credit licence, they have created a group one which automatically covers the hire or loan of bicycles provided under the scheme where the value is less than £1,000.


As an alternative, if your business buys bicycles and makes them available to employers and directors, without a hire or loan contract, then the exemption applies without the consumer credit problem or price cap. You can reclaim the VAT and the remaining cost if the bicycle qualifies for a capital allowance deduction is equal to 19% of the cost.

18 Jun 2018

« Back to latest news

Latest news

Making Tax Digital

The Making Tax Digital pilot for Self Employed businesses launched in March which will progress in a few years’ time a...

Click to read more >

Selling your Business

When selling a business, the process is much more complicated than a simple transaction and a signature. It’s all abou...

Click to read more >

Flexible working staff over the summer holidays, how will this affect your payroll?

The school holidays are soon upon us and it can be a difficult time for working parents who are usually juggling managin...

Click to read more >

What's a reasonable excuse to not file your tax return on time?

It is very known that when a tax return has been issued, but not filed by the statutory deadline on time then an automat...

Click to read more >

What must go through your payroll and be subject to PAYE?

You may think it’s obvious what must be going through your payroll and be subject to PAYE however, it’s not just sal...

Click to read more >

Do you know who controls your business?

The law requires all Limited Companies and LLPs to tell Companies House about the people with significant influence or c...

Click to read more >

Employing casual staff

As an employer you must pay a worker a fair wage for a fair days work and also provide a workplace pension, welfare and ...

Click to read more >

RTI Penalties

When entering your information into your payroll, even it is all correct you still need to make sure that it is reported...

Click to read more >

Expenses & Benefits Review

Have you ever thought of initiating an expenses and benefits review? What better time of year than now to work through t...

Click to read more >

How can we help?




It has been painless and helpful and I can now access my accounts on the go through my phone and even file all my receipts and expenses in real time as they happen.

Mark Cooper
Langley Consulting Limited

Click to read the full testimonial >