Frequently Asked Questions
If your query is not here, or you would like more detail about any aspect of Cycle2Work, please get in touch or call 08700 660511 during office hours, Monday to Friday.
Where can I get my bike and cycling safety equipment?
Halfords has the largest selection of cycles and cycling safety equipment in the UK, and sells more bikes than any other retailer. Look at our huge range of top brand products either at Halfords' 400 plus stores or on-line at www.halfords.com.
Still can't find what you are looking for? You will be provided with a dedicated call centre number on which to call the Halfords Cycle2Work team and we will see if we can source the bike for you.
Can I use my Letter of Collection to get a bicycle for a family member, partner or friend?
No. The bicycle must be used by you, mainly for commuting to work, i.e. for journeys made between the home and workplace, or part journeys (for example, to the station), or for journeys between one workplace and another.
Can I apply for more than one bicycle?
Yes, providing that you use both for commuting to work. For example, you may have a summer route and a winter route to work, both requiring different things from a bike.
When can I collect my bike?
Your bike will be built and sized to you in store, if you choose, so that it is ready to ride. If it is in stock simply surrender your LoC and present a form of ID and you can take the bicycle home with you. If it is not in stock, you should request that your chosen bike is ordered in to the store.
What if I can't get to a store, will I miss out?
No, you can still participate. If there is not a Halfords store near your home or work, or you are unable to get into store Halfords can arrange to get the bike to you.
What happens if I decide I no longer wish to use the bike for commuting after I have joined the scheme?
You will no longer qualify for the tax relief afforded to this benefit. In such circumstances you will need to advise payroll, who will arrange for the remaining salary reductions to be taken from your pay after tax and National Insurance have been deducted. You cannot return the cycle and have your salary re-adjusted.
If I decide not to participate in the scheme now, can I join later?
Depending on the success of this year's scheme, your employer may choose to repeat it in the future. However, your employer cannot guarantee that there will be another opportunity to participate.
Will a salary sacrifice affect my entitlement to benefits?
Possibly, although in most cases the effect is likely to be small. However, you need to be aware of the implications of paying less tax and NI contributions and accepting a reduced salary. For a small number of employees, particularly those on low-incomes, Cycle2Work schemes might not be appropriate. There may be an impact on:
- Pension schemes being contributed to (especially if you are nearing retirement and contribute to a final salary pension scheme).
- Entitlement to contribution-based benefits like the State Pension, Jobseeker's Allowance and Incapacity Benefit. This is particularly likely if your salary after taking a salary sacrifice falls below the Lower Earnings Threshold.
- Entitlement to earnings-related benefits like Maternity Allowance and the State Second Pension.
- Entitlement to work-related benefits like Statutory Sick Pay, Statutory Maternity Pay, Statutory Paternity Pay and Statutory Adoption Pay.
If you would like a fuller explanation of the effects of salary sacrifice on benefit entitlement, please contact Her Majesty's Revenue and Customs.
Will my salary automatically rise at the end of the hire period?
This is between you and your employer, as by opting for a salary sacrifice you are giving up your contractual right to future cash remuneration. In order to qualify for the tax-benefits of Cycle2Work, you're technically agreeing to a salary reduction rather than a deduction, although in practice this distinction is not normally worth worrying about.
Why would my employer want to run a scheme?
Cycle2Work is good news for employers as well as employees, which is why it's worth them running a scheme. For example, it's an easy way of improving morale, it contributes towards a green transport plan, and shows they are environmentally conscious - which these days is often a core business objective.
I've only been with my employer for a short time. Am I eligible?
That depends on your employer - some may restrict eligibility based on length of service, others may want to open out the scheme for all.
I'm paid the minimum wage. Am I eligible?
Unfortunately not. Cycle2Work is funded by salary sacrifice, and it would be illegal for your employer to pay you less per hour than they already do.
I'm freelance, self-employed or on a short-term contract. Am I eligible?
Sadly not.
What if my bike is faulty?
All bikes come with a 12 month warranty, which means that all issues that fall within this warranty will be either repaired or replaced, whichever is more appropriate. You are deemed to be leasing the bike from your employer, therefore the contract for the purchase of the bike is between Halfords and your employer. This means that Halfords provides the warranty for your employer, which you are able to take advantage of. You should therefore return your bike to Halfords to be inspected in the event of a warranty issue.
If you have obtained a special order bike through the scheme, Halfords will provide the same cover as you would have received if you had purchased the bike from that manufacturer yourself. Halford will provide a dedicated Cycle2Work number for you to report such issues
What if my bike gets stolen/accidentally damaged?
Should any bicycle or piece of bicycle safety equipment be lost, suffer accidental damage or become inoperable you will be required to continue to meet your financial responsibilities for the remainder of the hire period. Any replacement bicycles or bicycle safety equipment fall outside the terms of this Hire Agreement. You solely bear the entire risk of loss, theft, damage to, or any loss or destruction of the bike. Any loss will not affect the continuation in force of the Hire Agreement. It is therefore recommended you obtain separate insurance, or ensure your bike is covered by your home contents insurance policy. If your home contents insurer covers the bike, you must inform them that your employer (or their nominal agents) has an interest in the bike.
Isn't Cycle2Work too good to be true?
Don't be put off from signing up to your employer's Cycle2Work scheme because up to 50% off a bicycle and cycling safety equipment sounds too good to be true. Cycle2Work really is as positive as it sounds. To appreciate this, it helps to understand the government's motives for offering such a generous tax break. Offering great savings off bicycles and cycling safety equipment isn't an act of generosity or a tax loophole, it makes sound environmental sense. The more people use alternative, more environmentally friendly modes of transport, the less car usage there will be - which would lead to a reduction in carbon emissions, which is a high priority for the government.
Is there a maximum value to the amount of equipment I can obtain through Cycle2Work?
There is no maximum value of equipment available through Cycle2Work. However, the Consumer Credit License that your employer must have in place in order to run a Cycle2Work scheme, allows a maximum of £1000 (inc VAT) per person. Therefore the maximum Letter of Collection value you can slect is £1000, unless your employer has applied for a License that permits them to offer you in excess of this amount. This will become evident when you see the options available to you, as you apply for the scheme.
How long do I have to enrol in the scheme?
Your employer will decide the closing date for the scheme. You will usually have about four weeks to select and order your Letter of Collection, but, to avoid missing the deadline, why not do it now?
Can I take part in more than one scheme?
You can technically apply again, each time your employer runs a scheme, provided the sacrifices together do not take you below National Minimum Wage. However, your employer may decide to prevent you from joining another scheme until your first Hire Term has lapsed.
What equipment is available?
Cycles and cyclist's safety equipment are included. The tax exemption defines a "cycle" as "a bicycle, a tricycle or a cycle having four or more wheels, not being in any case a motor vehicle" (192(1) of the Road Traffic Act 1988 (c52.)). An electrically assisted pedal cycle can be included under the scheme.
Cyclists' safety equipment is not defined in the legislation and a common sense approach should be taken when selcting it. This could include:
- cycle helmets which conform to European standard EN 1078,
- bells,
- bulb horns,
- lights including dynamo packs,
- mirrors and mudguards to ensure the riders visibility is not impaired,
- cycle clips,
- dress guards,
- panniers,
- luggage carriers and straps to ensure luggage is carried safely,
- locks and chains to ensure cycle can be safely secured,
- pumps,
- puncture repair kits, tool kits and tyre sealant to allow for minor repairs,
- reflective clothing,
- white front reflectors,
- and spoke reflectors.
Who owns the bicycle and cycling safety equipment?
Cycle2Work schemes operate as a lease: your employer is technically loaning the equipment to you for a fixed-period. After the agreement period is over, your employer may offer to sell the equipment to you for its fair market value at that time.
What if I leave early or I am made redundant?
If you leave before the end of the hire period, you must pay your employer the balance of the amount still to pay and this will deducted from your final net pay. However if your final salary is not sufficient to cover this amount, you will be required to pay your employer this outstanding money by cheque/cash within 14 working days of leaving the company. You may then have continued use of the equipment without further payment until the hire period expires, when you may be offered the opportunity to purchase the equipment for its then fair market value. However this transfer of ownership is the subject of a separate agreement and is not governed or influenced by the Hire Agreement you sign for this scheme.
What if I already own a bike - why would I want a new one?
Your old bike needn't be redundant. You may find that as you start to cycle more and more that you need a bike with higher quality componentry, which will allow you to ride more efficiently. You may also sometimes take different routes when travelling to work, i.e. a summer route and a winter route, which might benefit from a different type of bike for each journey.
