Cycle to Work Scheme: How to Get an E-Bike and Save

Last updated: 23 September 2026

The Cycle to Work Scheme is the easiest way for most UK employees to get an e-bike for a lot less than the ticket price. You don't get a discount at the till. Instead, you pay for the bike out of your gross salary, before Income Tax and National Insurance are taken off. Depending on your tax band, that can cut the real cost of an electric bike by 28% to 47%.

This guide explains how the Cycle to Work Scheme works for an electric bike, what you actually save, why the old £1,000 limit no longer applies, which e-bikes qualify and what happens at the end of the hire period.

The scheme is a government-backed tax exemption that employers run through a provider. The mechanics are the same almost everywhere:

1. Your employer signs up with a Cycle to Work provider.
2. You choose a bike and any safety kit up to the amount your employer allows.
3. The provider buys the bike and your employer hires it to you, usually for 12 months.
4. You repay the cost through salary sacrifice, in equal monthly amounts taken from your gross pay.
5. At the end of the hire, you are normally offered the chance to own the bike or keep using it.

Because the repayments come out before tax and National Insurance, your take-home pay drops by less than the amount you sacrifice. That gap is your saving.

The official background sits in the government's Cycle to Work Scheme implementation guidance, which sets out what employers and providers must do.

Your saving depends on how much Income Tax and National Insurance you would otherwise have paid on the sacrificed salary. For most employees in England, Wales and Northern Ireland, the rough figures are:

Scottish taxpayers have different income tax bands, so the percentage will be a little different. Your provider's savings calculator will give you an exact figure based on your salary.

Here is what that looks like on two EMotorad bikes at their current UK prices:

On a 12-month hire, the T-Rex Air works out at about £70.75 a month from gross pay. A basic-rate taxpayer would see their take-home pay fall by roughly £51 a month, not £70.75.

These examples leave out any end-of-hire payment, which we cover below. They also assume your salary stays above the National Minimum Wage after the sacrifice, because employers cannot take your pay below that level.

Many people still think the Cycle to Work Scheme is capped at £1,000. It isn't.

The £1,000 figure came from the original guidance, which effectively kept hires under that amount because of consumer credit rules. In 2019, updated government guidance made clear that employers can offer bikes above £1,000, as long as the scheme is run by a provider with the right Financial Conduct Authority permissions. Most large providers now offer much higher limits.

You may also have seen headlines in late 2025 about a cap being brought back. In the event, the November 2025 Budget left the scheme's rules unchanged. Rules can still change in future Budgets, so it's worth checking the current position with your employer's provider before you order.

What does still apply is your employer's own limit. Some employers set a ceiling, such as £1,000, £2,000 or more, to manage their cash flow. Ask HR what limit applies to you.

Yes, as long as the bike is a legal electrically assisted pedal cycle (EAPC). In Great Britain, that means:

• the motor has a maximum continuous rated power of no more than 250W
• the motor only helps while you pedal
• assistance cuts out at 15.5 mph

Bikes that need registration, tax or insurance, such as speed pedelecs or throttle bikes without type approval, are not covered. If you want the full detail, read our guide to UK e-bike rules and EAPC law.

Every EMotorad e-bike sold in the UK is built to the EAPC limits: a 250W motor with assistance up to 15.5 mph. That makes the range a natural fit for the scheme, provided your employer's provider can supply it. Providers work with different retailers, so check with your provider which brands and shops they accept before you pick a bike.

Most of the UK range sits close to the price points employers commonly allow:

• [T-Rex Air](https://www.emotorad.com/uk/shop/t-rex-air), £849. A hardtail mountain e-bike with 29-inch wheels, disc brakes and a 36V battery. A strong choice if your commute mixes roads, towpaths and rougher cut-throughs.
• [T-Rex Pro](https://www.emotorad.com/uk/shop/t-rex-pro), £999. A step up with a 468Wh battery and up to 70 km (about 43 miles) of range on pedal assist.
• [EMX](https://www.emotorad.com/uk/shop/emx-plus), £999. A full-suspension mountain e-bike with a 468Wh removable battery, for riders who want comfort on broken surfaces.
• [Veloa](https://www.emotorad.com/uk/shop/veloa), £1,049. A 20-inch folding fat-tyre e-bike with a removable 48V 12.8Ah battery and up to 37 miles on pedal assist. Ideal if you combine the bike with a train or need to store it indoors.
• [Cargo G1](https://www.emotorad.com/uk/shop/cargo-g1), £1,199. A cargo e-bike with dual removable batteries, for school runs and shopping as well as commuting.

If your commute is mostly urban, our guide to the best electric bike for commuting in the UK will help you narrow it down.

The exact process depends on your provider, but it usually looks like this:

1. Check your employer is signed up. Ask HR or look on your staff benefits portal. If they are not, you can ask them to join. Setting up a scheme costs employers little or nothing, and they save on employer National Insurance too.
2. Find out your limit and your provider. This tells you how much you can spend and which retailers you can use.
3. Choose your e-bike. Think about your commute distance, where you will store the bike, and whether you need to carry it. Compare battery size and range, not only price.
4. Get a quote. The retailer or provider issues a quote for the bike plus any accessories, such as a lock, lights or a helmet.
5. Apply through the provider. Enter the quote on your provider's portal and sign the hire agreement.
6. Wait for approval. Your employer approves the request and you receive a certificate or voucher.
7. Collect or receive the bike. Hand over the certificate, and your salary sacrifice starts from your next payroll date.

Build in some time. Approval can take anything from a few days to a few weeks, and some employers only open their scheme at certain times of the year.

Safety equipment can usually go on the same agreement, which means you save on it too. Common additions are:

• a good lock, ideally a Sold Secure rated D-lock or chain
• front and rear lights
• a helmet
• mudguards and a rack if your bike doesn't already have them
• a waterproof jacket or panniers, depending on your provider's rules

Keep a sensible amount of your budget for a lock. E-bikes are attractive to thieves, and some insurers ask for a specific lock rating.

This is the part many people skip, so it's worth understanding before you sign.

During the hire period the bike technically belongs to your employer or the provider. At the end, you usually get options such as:

• Extended use. You keep using the bike for a further period, often with a small deposit, and ownership passes to you at the end at no extra cost.
• Buy at fair market value. You pay a final amount, based on HMRC's guidance on fair market value for used bikes, and own it straight away.
• Return the bike. Rarely chosen, but usually available.

The final payment or deposit reduces your overall saving slightly, so include it when you compare. Terms differ between providers, so read the end-of-hire section of your agreement.

If you leave before the hire ends, the remaining payments are normally taken from your final salary. Because that comes from net pay, you lose some of the tax saving on those months. If you think you may change jobs soon, check this clause first.

For most employees it is the cheapest route to a new e-bike. A few situations where it may not be:

• You are self-employed. The scheme runs through an employer's payroll, so it isn't open to you.
• Your salary is close to the minimum wage. Salary sacrifice can't take you below it, which limits what you can do.
• You are about to change jobs. Leaving early can wipe out part of the saving.
• Your employer's providers don't cover the bike you want. In that case, weigh the saving on a different bike against buying the one you want outright.

If the scheme isn't available, look at the total cost of ownership rather than just the sticker price. Our breakdown of what it costs to run an electric bike in the UK shows how low the day-to-day costs are.

Most employees save between 28% and 47% of the bike's price, depending on their tax band. Basic-rate taxpayers typically save about 28%, higher-rate about 42% and additional-rate about 47%. Scottish taxpayers see slightly different figures, and any end-of-hire payment reduces the total.

No. Government guidance updated in 2019 allows bikes above £1,000 where the provider has the right FCA permissions. The November 2025 Budget did not bring a cap back. Your employer may still set its own limit, so check with HR.

No. The scheme depends on salary sacrifice through an employer's payroll. If you are a company director paid through PAYE, you may be able to use it through your own company. Speak to your accountant first.

Most major providers now accept high-value e-bikes, but each works with its own network of retailers. Ask your employer which provider they use, then check that provider's retailer list and limits before choosing your bike.

Not automatically. At the end of the hire, you usually choose between extended use, which often ends in ownership, or paying a fair-market-value amount to own it straight away. The details depend on your provider's terms.

The Cycle to Work Scheme turns a good e-bike into a very affordable commute. Every EMotorad sold in the UK is a 250W, 15.5 mph EAPC, and most of the range sits within common employer limits. See which EMotorad fits your Cycle to Work budget and check with your provider before you order.