I don't think I have saved anything on the cycle to work scheme

We get quite a few calls from people who don't think they've saved anything, and this is almost always because the cost of the scheme is shown without savings on peoples payslips. This is because you only see the GROSS (or RRP) deduction on your slip - this is the amount of money that's going to come out of the pre-tax salary and that's going to create the tax savings. 

The video below explains what's going on:

We've also created the graphic that highlights how to read your payslip:

[Click on the image to enlarge it]

Using the example above, it looks like the employee would be paying £300 for their bike (12 x £25). However, because that figure would be getting deducted from their pre-tax salary their Income Tax and National Insurence Contributions savings would significantly reduce the cost. The employee would realise the saving in their net or take home pay. 

In the example shown, the employee is a lower rate taxpayer - as such they would save 28% on the cost of their bike (meaning it would only cost them £216 not including their Ownership Fee or £225 including their Ownership Fee). 

For a personalised savings figure that includes ownership fees, visit our calculator and enter your details. 

You can search to see if your workplace is signed up using the search box on Cyclescheme's homepage.