To improve your shopping experience today and in the future, this site uses cookies.
I Accept Cookies

Top Cyclescheme tip

It's essential to stay fit and since riding to work is (for those on city commutes) quicker than driving it makes an ideal opportunity to excersize.

A bonus is that it also saves you money on transport (and a gym membership, winner).

Supported Schemes


The Cycle to Work Scheme is an annual tax exemption initiative introduced in 1999 as part of the Government’s Green Transport Plan. It allows employers to loan bicycles and safety equipment to their employees as a tax free benefit. Essentially it allows you to purchase a bike and accessories over a 12 month period by way of salary sacrifice.

Either your employer or one of several companies can act as administrator, the biggest and best known being Cyclescheme. 700 are affiliated with Cyclescheme, the Bike2Work scheme, Green Commute Initiative, Cycle Solutions, WorkRiders, CyclePlus and Bikes for the NHS.

We also (currently) accept Halfords (Cycle Plus) (Ride2Work) Vouchers - Please note : We levy a 10% Surcharge for the use of Halfords Administered schemes. The reason for this is simple: they are greedy and are taking a huge cut of our profit, often twice that of other schemes (as well as taking the longest to arrange payment). In order to facilitate your purchase of a quality bike that likely will not be available through Halfords stores, we need to recoup a fair percentage of that cost otherwise it simply isn't viable. Yes, the schemes are funded by us! When they wise up and play fair, we will remove the surcharge.

In most cases the administrators issue you with a Certificate that can be exchanged for a bike and any safety equipment at 700.

Please note : for the most part it is necessary to collect your bikes. Where it is possible to deliver, a delivery charge of £50 will be required to mitigate costs (remember, any leeway on costs we have is swallowed by commission charges) - Post Brexit / COVID, this charge is still less than it costs us to ship!

What’s the process?

  1. Your employer must be registered with the scheme. More information on becoming a Cyclescheme affiliate is available
  2. Visit the 700 store in Windsor, choose a bike and accessories and get a quotation.
  3. Apply for your certificate online using the Cyclescheme website, your employer may need to fill out a hire agreement also at this point.
  4. Once approved a certificate will be issued to you or your employer, depending upon which was stipulated at the time of application.
  5. Exchange the certificate for the bike.
  6. After 12 months the employer will offer you the opportunity to purchase the bike at its fair market value.

Who can participate in the scheme?

There is no minimum or maximum company size necessary to sign up to the scheme. Eligible employees must: be paying PAYE, earn more than the National Minimum Wage after salary sacrifice, and have a contract that does not end during the hire period. Employees who earn close to the National Minimum Wage following salary sacrifice may wish to discuss with their employer the option of loan or pool bikes. There is no credit check for employees wishing to participate.

What is salary sacrifice and how are savings made?

Salary sacrifice occurs when an employee agrees to give up part of their salary for an agreed period (in the case of the Cycle to Work scheme this is usually 12 months) in exchange for some kind of non-cash benefit, such as the loan of a bicycle and safety equipment, As salary sacrifice is taken from the gross salary (before tax) rather than net pay it means the employee pays less income tax and National Insurance. Employers that can reclaim VAT usually pass this saving on to their employees, which increases savings further. Employers also save on Secondary Class NICs (usually around 12.8%) as the amount they’re paying in wages is also lower. See for a more detailed explanation.

What are the savings?

Savings are generally up to 39%, but the actual amount depends on the employee's personal tax band and the way the employer runs their scheme. Higher rate taxpayers will save more, employees whose company cannot reclaim VAT (the NHS, for example) will save less. If the employer uses external finance (ie, borrows the money to buy the bikes from an outside agent) then savings will be approximately 5% lower.

Please Note: Sale items are subject to an 11% surcharge. For example: a sale bike purchased with a £1000 voucher will be subject to a £110 charge. Please note that Halfords Cycle to Work vouchers will attract a 15% surcharge on sale purchases. These surcharges are passed on from the Cycle To Work Scheme provider.

What bikes are available?

Employees can choose any bike - including folding bikes and other specialist cycles.

New Cyclescheme Legislation

This exciting new change in legislation has removed the £1000 limit for bikes under the Governments Cycle To Work initiative, so employers can now apply to have no limit on the value of certificates issued to employees. This new limit is available already so your employer can start applying for a higher (or even unlimited) Cycle To Work limit straight away!
This new limit means that you can save EVEN more on your new bike, by paying for the whole bike via salary sacrifice (and not just the first £1000). This is a great initiative to get more people out on their bikes, and the changes in the upper limit mean that the potential savings are bigger than ever.
Electric bikes are a hugely popular commuting bike, reducing the effort on hills means that you can get to work quickly, and without breaking a sweat. The new increase on the upper limit for Cycle To Work now means that you can put the whole value of your new electric bike through the Cycle To Work scheme, saving you money on the bike, and on your commute.
How can you take advantage of this new upper limit?

If you want to benefit from this new higher limit, all you need to do is get in touch with your employer or HR department and ask them to apply for a higher limit through their chosen Cycle To Work provider. Then you can apply for a higher value certificate and save on your dream bike!.

Please Note: Sale items are subject to an 11% surcharge. For example: a sale bike purchased with a £1000 voucher will be subject to a £110 charge. Please note that Halfords Cycle to Work vouchers will attract a 15% surcharge on sale purchases. These surcharges are passed on from the Cycle To Work Scheme provider.

Can a bike be provided by mail order?

700 is capable of supplying bike packages by mail order. Please note that delivery fees for mail order bikes purchased on cycle to work schemes must be paid for outside of the scheme (they do not qualify for tax relief) and you will be contacted with charges relating to shipping at the time of purchase. Shipping charges are shared between 700 and the customer on purchases made using cycle to work schemes.

Who actually owns the bike?

The bike and related goods remain the property of the employer throughout the hire period, unless the employer uses a finance company to fund the bikes; in this case the finance company or funding bank will own the bikes.

Who is responsible for maintaining the bike and what happens if it is stolen?

It is the employee's responsibility to maintain the bike. 700 will be able to advise about maintenance and servicing depending on how the bike is used - don't forget we do offer a free first service. If the bike is stolen the employee will be liable for any outstanding monies without any tax exemptions, so it's very important that employees insure the bikes. Safety equipment including Home Office-approved 'Sold Secure' D-locks and cable locks can be obtained as part of the scheme.

What's the best way to insure the bike?

Household policies are usually the cheapest option but employees must ensure that the insurer covers the bike when in storage away from your home, and that the bike's value doesn't exceed the upper claim limit. If the bike can't be covered on a home insurance policy, we recommend PedalSurefor insurance and as a customer of 700 you will receive a 15% discount by using this link

Does the bike have to be used for commuting?

Employees should use the bike mainly for commuting to and, if relevant, between work places (at least 50% of the bike’s use should be for work purposes). However, the bike can also be used for non-work purposes and there is no need for employers to monitor individual usage or for employees to keep a mileage log. Please note that employees cannot claim business mileage allowance with a bike obtained under the scheme as the bike belongs to the employer.

What happens at the end of the hire period?

At the end of the hire period employees may be given the opportunity to buy the bike for a full market value, however this cannot be an automatic entitlement. The cost of full market value cannot be stated before or during the hire period as this could be considered a benefit in kind and therefore not be eligible for tax benefits. Many employers opt for Cyclescheme to take ownership of the bikes at the end of the hire term, in which case any offer sale to the employee will come directly from Cyclescheme.

What happens if an employee leaves their job or is made redundant?

Once signed, the Hire Agreement is non-cancellable following a cooling-off period of seven (7) working days after collection of the goods. This means that if an employee leaves or is made redundant from their employment during the hire period they are obliged to pay the remaining salary sacrifice amount in full from net pay i.e. without any tax exemptions.

For further information please see the Department for Transport's Cycle to Work implementation guide.

If your employer is registered with Cyclescheme and you would like a quote then please email us at or for further information on the scheme itself then please