Cycle to work salary sacrifice scheme

Overview

A salary sacrifice arrangement is an agreement to reduce an employee's entitlement to cash pay, usually in return for a non-cash benefit. The 'sacrifice' is achieved by varying an employee’s terms and conditions of employment relating to pay. Salary sacrifice is a matter of employment law, not tax law. Where an employee agrees to a salary sacrifice in return for a non-cash benefit, they give up their contractual right to future cash remuneration. 

Under a salary sacrifice scheme, the council allows you to purchase a bike and safety equipment items under a salary sacrifice arrangement. This means that your monthly gross salary will be reduced, resulting in an initial saving on tax and National Insurance.

The limit for the Cycle to Work Scheme is £4,000 subject to affordability.