The full guide · 2026/27 Scottish rates
Cycle to Work, explained properly
What it really costs on your tax band, how the money moves, every scheme side by side, and the questions people ask. For the short version, go back to the main page.
What the bike costs you per month
Three bike prices, every Scottish band, 12-month hire. The gross deduction is the price divided by 12; the figure in bold is what you actually feel in your pay packet.
| Your band | Saving rate | £1,500 bike£125 gross/mo | £3,000 bike£250 gross/mo | £5,000 bike£416.67 gross/mo |
|---|---|---|---|---|
| Starter£12,571 to £16,537 · 19% tax + 8% NI | 27% | £91.25saves £405 | £182.50saves £810 | £304.17saves £1,350 |
| Basic£16,538 to £29,526 · 20% tax + 8% NI | 28% | £90.00saves £420 | £180.00saves £840 | £300.00saves £1,400 |
| Intermediate£29,527 to £43,662 · 21% tax + 8% NI | 29% | £88.75saves £435 | £177.50saves £870 | £295.83saves £1,450 |
| Higher£43,663 to £50,270 · 42% tax + 8% NI | 50% | £62.50saves £750 | £125.00saves £1,500 | £208.33saves £2,500 |
| Higher£50,271 to £75,000 · 42% tax + 2% NI | 44% | £70.00saves £660 | £140.00saves £1,320 | £233.33saves £2,200 |
| Advanced£75,001 to £125,140 · 45% tax + 2% NI | 47% | £66.25saves £705 | £132.50saves £1,410 | £220.83saves £2,350 |
| Topover £125,140 · 48% tax + 2% NI | 50% | £62.50saves £750 | £125.00saves £1,500 | £208.33saves £2,500 |
Combined marginal rate = income tax + employee National Insurance on the salary you give up, 2026/27 Scottish bands. The sacrifice can straddle two bands, so your real figure may sit between rows. Before any end-of-hire step. No VAT saving since 2012. Rest-of-UK taxpayers: roughly 28% basic, 42% higher, 47% additional. Not a quote.
Then the end-of-hire step
Gogeta and GCI: £1. Halfords Cycle2Work, Vivup, Cycle Solutions, Pluxee: £0 after a free extension. Cyclescheme "Own it later": a refundable deposit of 3% under £500 or 7% over, then ownership after three more years.
Why Scotland is different
Scotland has six bands and the 42% rate starts at £43,663, not £50,271. So more Edinburgh professionals save at 44 to 50% than their English colleagues. Between £43,663 and £50,270 you save 42% tax plus 8% NI: half the bike.
Longer hire, smaller months
If your employer offers 18 or 24 months the saving rate is the same and the monthly figure drops by a third or a half. The University of Edinburgh offers 12 or 18.
Where Edinburgh Bike Fitting fits in
Four parties, one bike. The scheme is between you and your employer; the provider does the paperwork; we do everything to do with the bike.
- 1
You apply with our quote. You apply on your employer's portal using the exact quote we write after the Pre-Purchase Fit. Your employer approves and the salary sacrifice starts: the cost comes off your gross pay over 12 months.
- 2
Employer pays the provider in full. Your employer pays the provider for the whole package up front and recovers it from your gross pay over the hire.
- 3
Provider pays us once we redeem your certificate. The provider sends you a certificate by email. You send it to us; we redeem it and the provider pays us.
- 4
Sized, quoted, built, fitted. We size you, write the quote, order and build the bike, and fit you on it at collection. Your employer owns it during the hire; you ride it.
Scheme by scheme
What changes between them is how you redeem and what the end-of-hire step costs. We accept all of them at normal prices.
| Scheme | How you redeem | Spending limit | End of hire | Good to know |
|---|---|---|---|---|
| Cyclescheme | eCertificate with a code. Used in full, in one transaction, at one shop. | None from the provider; your employer sets one. | 3% or 7% refundable deposit, ownership after 4 years; or 18%/25% to own at 12 months. | The biggest scheme. Lothian Buses, Strathclyde and Stirling use it. |
| Halfords Cycle2Work | Letter of Collection for an exact amount, valid 4 months. No top-ups, no refunds. | Employer sets it. University of Edinburgh and NHS Fife: £5,000. | £0 after a free extension. | Also behind Pluxee, Reward Gateway and "Cycleplus". Works at independents like us, not just Halfords. |
| Green Commute Initiative | We quote, you pay a refundable deposit, your employer pays, voucher issued. | None. "Any bike, any price." | £1 after a free loan to year six. | Not-for-profit. Allows accessories-only orders and e-bikes, cargo, adapted bikes. |
| Gogeta | Flexi voucher you can spend across several retailers and transactions within 12 months. | Default £5,000; employer can change it. | £1. | Free for employers to set up. Directors paid through PAYE can join. |
| Vivup | Purchase order naming the exact bike and shop after our quote. | Employer sets it. | £0 after extension. | City of Edinburgh Council's platform. Perkbox runs on it. |
| Cycle Solutions | Letter of Collection within five working days of approval. | Employer sets it. | £0. | Scottish Government and Parliament. |
| Bike2Work Scheme | We give you a written quote; employer pays; voucher released in a day. | None. | A small fee may apply. | Common with SMEs. |
| Enjoy Benefits, Caboodle, Salary Extras | Voucher or Letter of Collection; we're approved when you nominate us. | Varies. | Varies. | Benefits platforms. Tell us which one and we'll handle it. |
Figures are the providers' published terms at October 2026; your own scheme documents take precedence.
How long it takes
From the studio to the first ride, then the year that follows.
- Day 0Pre-Purchase Fit at the studio, two hours. Exact quote the same day.
- Day 1 to 14You apply; your employer approves. The University and NHS boards tend to be at the slower end.
- Certificate arrivesBy email. Send it to us and we redeem it and order the bike.
- BuildIn stock: a few days. Ordered in: brand lead time, which a four-month Letter of Collection comfortably covers.
- CollectionFitted on the bike, frame number given for insurance, first ride.
- Months 1 to 12Salary sacrifice. Ride it.
- End of hireThe small ownership step, from £0 to a 7% deposit depending on scheme.
Questions people ask
The basics
Is this a government scheme?
Yes. It's a tax exemption that has existed since 1999, run through your employer. HMRC sets the tax rules, the Department for Transport publishes the guidance, and private providers do the admin. The rules last changed in 2019, when the £1,000 cap was removed for FCA-authorised providers, and the scheme came through the November 2025 Budget untouched.
Why is it called a hire?
Because during the agreement your employer owns the bike and hires it to you. That's what makes the tax saving legal. At the end there's a separate, small step to take ownership. There's no built-in right to buy, which is why providers phrase it carefully.
How long is the hire?
Usually 12 months. Some employers offer 18 or 24, which lowers the monthly amount. University of Edinburgh offers 12 or 18; NHS Grampian 12, 18 or 24.
Is there VAT saving?
Not since 2012. The saving is income tax and National Insurance only.
Applying
Do I pick the bike first or apply first?
Pick first. Every scheme needs an exact amount, and most won't let you change it or add your own money afterwards. We do the Pre-Purchase Bike Fit, write the quote, and you apply with that figure.
What does the quote need to show?
The bike, every component we've specified for you, any kit, and one total. Some providers (Bike2Work, Vivup, Cycle Solutions) work from the shop's written quote; others (Cyclescheme, Gogeta) have you enter the amount yourself. We write it in whichever format yours needs.
How long does approval take?
Depends on your employer. Some approve within days; the University and NHS boards often take one to two weeks. Then the certificate or Letter of Collection arrives by email.
How long is the certificate valid?
Halfords Cycle2Work Letters of Collection are valid for four months. Gogeta vouchers run for twelve. Cyclescheme certificates don't expire quickly but should be used promptly. Enough time for a bike to be ordered in.
Can I split it between shops?
Gogeta's flexi voucher can be spent across several retailers. Cyclescheme and Halfords certificates must be used in full, in one transaction, at one shop. If you want kit from elsewhere, plan the amounts before you apply.
Can I use it for a second bike?
Yes, if your employer allows a second agreement and both bikes are mainly for commuting. Some employers cap the total.
Money
What happens to my pension and other benefits?
Salary sacrifice reduces your gross pay, so anything calculated from it can move slightly: pension contributions on a percentage basis, statutory pay, some means-tested benefits, and mortgage affordability checks. For most people the effect is small, but if you're near a threshold, check with payroll first.
Does it affect my student loan?
Student loan repayments are calculated on the reduced salary, so they fall slightly during the hire.
Is there a credit check?
No. It's not credit. There's no interest and nothing on your credit file.
What's the end-of-hire fee on my scheme?
Gogeta and GCI: £1. Halfords Cycle2Work, Vivup, Cycle Solutions, Pluxee and Evans: £0 after a free extension. Cyclescheme: a refundable deposit of 3% (under £500) or 7% (£500 and over) if you choose "Own it later", or 18%/25% to own at 12 months. Bike2Work says a small fee may apply.
During the hire
What if it's stolen or damaged?
You keep paying. Insure it from day one; most home contents policies will add a bike, or use a specialist cycle insurer. We'll give you the frame number on collection.
Can I use it at weekends and for fun?
Yes. More than half your use should be commuting or work journeys, but nobody logs it and HMRC says no records are needed.
I work from home most days. Does it still count?
Yes. The rule is about the main use being qualifying journeys when you do ride to work, not about how many days a week you go in.
What if I leave my job?
The remaining balance usually comes out of your final net pay (so no tax saving on that part), and you then take ownership through the end-of-hire step. Check your own scheme's wording.
Maternity, sick leave, a pay cut?
Payments can usually be paused or adjusted if your pay drops below what the sacrifice would take it to, and the scheme can't take you below the National Minimum Wage. Talk to payroll.
At Edinburgh Bike Fitting
Why the Pre-Purchase Bike Fit first?
Because the certificate is for one exact amount. If the frame is the wrong size you can't fix it later with scheme money. The Pre-Purchase Bike Fit is £195 and two hours: 3D motion capture and a pressure map on the fit bike, then the frame, size and setup that suit you, with a shortlist and your measurement file to take away. Order the bike through us within 90 days and the full £195 comes off its price.
What's the difference between the Pre-Purchase Fit and the Frame Finder?
The Pre-Purchase Fit (£195) gives you the numbers and a shortlist, and we write the scheme quote from it. The Frame Finder (£350) goes further and includes the fit on the finished bike. Start with the Pre-Purchase Fit; if you decide you want the Frame Finder, the £195 comes off it.
Can the fit go on the certificate?
We don't put the fitting service itself on a certificate, because no provider clearly covers services. Components we specify for you (saddle, stem, bars, pedals) are part of the bike and do go on. The Pre-Purchase Fit is paid separately, and the £195 comes off the bike if you order it through us within 90 days.
Do you charge more for scheme sales?
No. Normal prices, no admin fee, and sale stock isn't excluded.
Do you do e-bikes, gravel, mountain and cargo bikes?
Yes. If it's a bicycle under the Road Traffic Act, it qualifies, and we fit all of them.
What if my employer doesn't have a scheme?
Send them to our employers page. Gogeta, GCI and Cyclescheme are free for an employer to join and take minutes. If you run your own company and pay yourself through PAYE, that includes you.
I'm not in Edinburgh.
The scheme is run by your employer, not by where you buy, so it works wherever you are. We fit people from Aberdeen, the Highlands and England, and we also fit in London at a partner studio in Farringdon.
Start with the fit, not the bike
£195, two hours, and it comes off the bike when you order through us within 90 days.