Cycle to work schemes allows employers to offer their employees the use of a bike for commuting in exchange for a salary sacrifice.  The salary sacrifice enables the employees to use their gross pay to reimburse the employer for the cost of the bike.  The gross pay is before tax, so the employee saves the tax and national insurance which would have been due on the amount sacrificed (33.25%, 43.25% or 48.25%).  It also allows employees to spread the cost over monthly pay packets, making the acquisition more affordable.