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Bicycle Purchase Advance

An interest- and tax-free loan to help you with the purchase of a bicycle for travel to and from work.

Bicycle Purchase Advance

Who is it for?

All permanent civilian staff who have completed at least two months’ service.


What is it for?

The MOD's cycle loan scheme can help you to make substantial savings on the cost of a bike and safety equipment through the advance of salary scheme. Cycling to work can help you keep fit, lower your carbon footprint and reduce you travel costs.


What do I get?

You can receive an interest-free and tax-free loan of up to £1000 to help with the purchase of your bicycle for traveling to and from work. This loan can also be used to purchase basic accessories and safety equipment such as lights, mudguards, safety helmet etc.

How do I claim?


Submit your completed application form to DBS Civilian Personnel by the 10th day of the month in which the loan is required, at the latest.

What happens next?

The advance will be paid with salary at the end of the month in which the claim was received, provided it has been received by that month’s cut-off date. The advance will then automatically be deducted from your salary in equal monthly payments.


For repayment of a bicycle advance before it is fully recovered, an alternative to repayment by cheque is for the Pay Team to clear (or reduce) the advance through salary. The Pay Team would require both the month of the repayment, and by how much if only a certain amount requires to be repaid.


It should be noted that if the total value of your season ticket advances issued in a financial year exceeds £10,000 it is considered by HMRC to be a payment in kind and is covered by P11D arrangements and may, therefore, incur additional taxation.


For further information, please see the Advances of Salary Policy.


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