Guide

Cycle to Work and Take-Home Pay

Cycle to Work is one of the easiest salary-sacrifice schemes to understand because there is usually no company-car style BIK complication in the main take-home estimate.

Quick answer

The employee usually gives up gross salary and saves tax and NI, so the net cost is lower than the headline package cost.

What to check

  • The take-home drop is usually smaller than the gross amount exchanged.
  • The saving depends on the tax and NI band you are in.
  • Payroll timing can still vary slightly by employer.

What to do next

  • Use the calculator to model the annual package cost.
  • Check the first payslip after the scheme starts.
  • Compare with EV salary sacrifice if you are looking at multiple options.

Try the tool

Use the checker if you already have a payslip. Use the calculator if you want to model take-home pay or salary-sacrifice changes before payday.