The Cycle To Work Scheme is a government-backed initiative and an employee benefit scheme that enables employees to hire cycles for active travel and/or cyclist’s safety equipment from the employer, or from a third party, in return for a deduction from their earnings known as salary sacrifice which can result in significant savings on the overall cost.

In a nutshell: The employer pays for the employee’s bike, the employer reimburses the VAT, and your employees pay you back from their gross pay rather than their net pay. As a result, you incur no financial loss while the employee benefits.