Cycle to Work

Table of Contents

Follow this guide to set up a Salary Sacrifice Pay Definition. Please ensure your scheme meets all salary sacrifice rules.

You can base this on:

A simple Payment pay template, which is added when the scheme starts and removed or zeroed when you wish it to stop
A Loan (amount) pay template which can be set once and operate automatically, then stop

Based on Payment Pay Template #

Company setup > Pay Definitions > Add

Select the Company and Payment Pay Template.

Suggest Cycle to Work as the Name and Description.

Change the Reuse to Use indefinitely

Outputs: Clear the .Gross Pay tick box to allow gross pay to continue to be the reference salary for reporting (this does not affect pay).

Click Update to add the pay definition.

Pay Item Editor > Search for the employee

Select the Cycle to Work Pay Item and then click the Create button

The Pay item will appear on the employee.

Enter the required value as a negative amount, e.g. -100, which will reduce taxable and NIable pay

Click Update to view the mini payslip and check the correct operation.

Company setup > Pay Definitions > Add

Select the Company and Loan (amount) Pay Template.

Suggest Cycle to Work as the Name and Description.

Inputs: Change the Earnings source to buss: .Gross Pay

Outputs: Change all the Output Busses as below, ensuring that .Gross Pay is never selected:

Click Update to add the pay definition.

Pay Item Editor > Search for the employee

Select the Cycle to Work Pay Item and then click the Create button

The Pay item will appear on the employee.

Enter the required positive values:

If you hover over the Pay Item Input names, a tooltip will provide more information.

Click Update to confirm the mini payslip and correct operation:

The amount will continue to be taken until the total Debt is exhausted.

Updated on September 17, 2026