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Cycle purchase schemes

What is a tax free bike scheme?

Cycle2Work is a tax and National Insurance free scheme set up by the Government to help promote healthier journeys to work and reduce pollution and congestion.

The new tax free cycle scheme

The Council has worked to make some positive changes to the scheme. There is now only one scheme, and this scheme is with Halfords. It also incorporates all of our local independent shops into one scheme.
You can now apply for up to £2000, which can be used to purchase a bike and all the associated safety equipment.

How does the scheme work?

You can hire a cycle from the Council, choosing a bike and cycle equipment for between £100 and £2000. At the end of the hire agreement, the Council will allow you to take ownership of the cycle at fair market value (please note any arrangements that may be made regarding the purchase of the bike at that time, will be the subject of a separate agreement). You will not pay tax or National Insurance contributions on the value of the salary you sacrifice for this agreement.

For example, if you choose a cycle and safety equipment worth £400 and are a lower-rate taxpayer, you could save up to £128* on the total cost, and if you are a higher-rate taxpayer, you could save up to £168*.
*exact savings are subject to your tax and national insurance calculations.

Participating stores

Employees can choose a bike from a local independent store and some of our Nottingham Stores are listed below:

  • Bunneys Bikes

  • Rutland Cycles

  • Cycle Inn

  • Holcros Ltd

  • Langdale Lightweights

  • Powered Bicycles

  • Pro-Bikes

  • Rock n Roll Bikes Ltd

  • Sherwood Pines Cycles

  • Shockwave Bikes

  • The Bike Shop (Nottingham)

  • TM Cycles Ltd

  • Total Fitness Nottingham Ltd

  • TSW Cycles

To find your nearest participating store, click on the bike shop locator

or you can choose a bike from your local Halfords store.

What is the application process?

To apply for the new scheme, you will need to access the Works Perks benefit portal

If you do not have access to the portal, you will need to provide consent for us to share your payroll details with Pluxee. You can give your consent by clicking here. If you are not on the network, please select "Continue without an account" and complete the information manually.

Once you have submitted your application, you will receive a copy of your contract via email. Please send this to works.perks@nottinghamcity.gov.uk as soon as possible.

After we receive your contract, we will contact your manager for approval.

You will hear from us within 10 working days.