Cycle to Work calculator
Through Cycle to Work your employer hires you the bike and you pay for it from your salary before tax and National Insurance. Here’s what that saves you, using 2026 to 2027 rates.
You’d save
£560
28% off a £2,000 bike, so it costs you £1,440
- Taken from your salary each month
- £167
- Actual drop in take-home pay each month
- £120
- Income Tax you won't pay
- £400
- National Insurance you won't pay
- £160
How this works
- You don’t own the bike during the hire, and it should be used mainly for getting to work. Your employer has to offer the scheme to all staff, and you need to be employed (not self-employed).
- There’s no legal price limit. The old £1,000 cap only applies to employers that run the scheme without an FCA-authorised provider; the main providers go well above it, which matters for e-bikes.
- At the end you can usually keep the bike for a fee, or extend the hire. The fee options above are the values HMRC accepts; some providers charge less or nothing, so check yours.
- We assume the whole hire falls in one tax year and you’re on a standard tax code and National Insurance category A. Pension contributions, student loans and other benefits can change the figure slightly.
Sources: HMRC: Rates and thresholds for employers 2026 to 2027; GOV.UK: Income Tax rates and Personal Allowances; DfT: Cycle to Work scheme guidance. Checked 6 Oct 2026.