The Cycle to Work Scheme is a Government backed initiative that enables you to obtain a bike and/or cycling accessories to use for riding to work whilst making tax and National Insurance savings from your gross pay.
You choose your perfect combination of bike and accessories and then rent the equipment through salary sacrifice from University Hospitals Birmingham NHS Foundation Trust (UHB). The maximum package value could be up to £10,000.
A salary sacrifice happens when you give up the right to receive part of your salary due. The salary sacrifice enables you to pay back the loan on your bike, accessories and safety equipment from your gross rather than net pay for the hire period, allowing you to benefit from income tax and NI relief which is where savings are accrued.
Typical savings on the scheme can be up to 40% for basic rate tax payers, and 49% for higher rate tax payers, but the actual amount you pay depends on your personal tax band.
Visit the Cycle Solutions website for more information.
Last reviewed: 09 March 2023
