Halfords cycle2work FAQ's
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What happens at the end of the loan period?
There is no automatic entitlement for you to take ownership of the cycles and safety accessories at the end of the loan period. However, your employer may choose to give you the option to purchase the equipment.
How will joining Cycle2work affect my pension or other benefits?

Because salary sacrifice reduces gross salary, this may impact upon pensions and other benefits. Halfords are not tax/pensions/legal advisors - so it is best to check with your financial advisor or employer before signing up if any of the following apply to you:

- If you have a pension

- If your Pension contributions are based on gross earnings
- If you are close to retirement and have a final salary pension
- If you are entitled to a contributions based benefits like the state pension;
- If you are entitled to earnings related benefits for example maternity allowance.

I have a lot of other salary sacrifice benefits, is this OK?

If the total value of all your salary sacrifice payments means that your wage is taken below that of National Minimum Wage you may not be able to sacrifice any more of your wage.

In this case Halfords have developed a process, which allows you to take advantage of a loan bike from your employer.

You may be asked to make contributions from your net pay towards the ongoing maintenance of this cycle and safety equipment. Your employer will be able to provide details of these payments.

Simply apply for the scheme in the normal manner. Your employer will be in touch if this affects you.

I’m paid close to the National Minimum Wage can I still take part?

It may be that your wage prevents you accessing your preferred value of cycle and safety accessories. Halfords have developed a process that will enable, at the point of approval, your employer to identify the highest value you can apply for.  Simply apply for the scheme in the normal manner. Your employer will be in touch if this affects you, by proposing a revised value to you.

How much does it cost to set up a Halfords cycle2work scheme?

Halfords do not charge a fee or any administration costs to set up and operate the cycle to work scheme. Please note, there may be a requirement for internal administration resource eg: payroll involvement, which should be factored into your own internal implementation.

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. It is recommended that you seek professional advice if you have any concerns or need more information.

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.

Where can I get my bike and cycling safety equipment?

Halfords has the largest selection of cycles and cycling safety equipment in the UK. Look at our huge range of top brand products

Still can't find what you are looking for? You can contact the Halfords cycle2work team with details of your requirements and they will be happy to suggest the options available.

Products on Halfords.com not sold and sent by Halfords are excluded from Cycle2Work

What if my bike gets stolen/accidentally damaged?

It is recommended you obtain separate insurance, or check your bike is covered under your home contents insurance policy. If your home contents insurer covers the bike, you must inform them that your Employer (or their nominated agent) owns the bike. Payments will not stop or be suspended due to loss or damage to the bike.

What if an Employee leaves early or is 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. 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.

How long do I have to apply for 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?

What equipment is available?

In addition to selecting a bike, the cycle2work scheme also allows employees to select cycling safety equipment. However, exactly what products this covers is not defined under statute and HMRC stipulate that a common sense approach should be taken. (http://www.hmrc.gov.uk/manuals/eimanual/eim21664.htm )

Please see below a list which can be used as a guide on what is and is not available through cycle2work


Items such as frames and forks are cycle components, not safety equipment: safety equipment is something you add to the cycle or the cyclist to make cycling safer.

If an employee were to access cycle components through the scheme, that Employer’s cycle2work scheme would be non-compliant.  As a minimum, HMRC would pursue the employer for incorrect P11D reporting and tax/NIC for the non-compliant items. As HMRC would not be able to determine which employees have chosen non qualifying equipment or indeed the employer, HMRC could deem the whole scheme non-compliant.


cycle helmets which conform to European standard EN 1078,


bulb horns,

lights including dynamo packs,

mirrors and mudguards to ensure the riders visibility is not impaired,

cycle clips,

dress guards,


luggage carriers and straps to ensure luggage is carried safely,

locks and chains to ensure cycle can be safely secured,


puncture repair kits, tool kits and tyre sealant to allow for minor repairs,

reflective clothing,

white front reflectors,

and spoke reflectors.

child seats           


Not available



Sat Navs

Cycle computers

Go pro camera

Turbo trainers

Cycle racks

Products on Halfords.com not sold and sent by Halfords are excluded from Cycle2Work

When can I collect my bike?
If it is in stock at your chosen Halfords store simply surrender your LoC and present a form of ID. If it is not in stock, you should request that your chosen bike is ordered in to that Halfords store. Your bike will then be built and inspected by a qualified bike mechanic, ready for you to ride away.
What is a Group Consumer Credit License?

The Office of Fair Trading has issued a Group Consumer Credit License allowing any employer to run a cycle2work scheme. The license allows you to hire equipment up to the value of £1,000 inclusive of VAT.

What bikes are available through the Halfords cycle2work scheme?

At Halfords, we have the UK`s widest range of brands in-store, online and via our UK Partner Independent Bike Shop Network.  Read all about the other fantastic brands that we can source by browsing "Our Brands" section of our website.



Products on Halfords.com not sold and sent by Halfords are excluded from Cycle2Work

Why doesn't my hire agreement show my actual savings?
Gross = Before Tax
Net = After Tax

The gross payment is identical for all employees regardless of your salary. The gross payment is stated on your hire agreement and each of your payslips.  

The net payment (true cost after tax and national insurance savings) varies amongst employees dependent on your own tax code.  The net payment is the remaining cost after your individual tax and national insurance savings have been made.
How do I know what LoC value to select?

You should select a letter of collection that covers the value of your chosen bike. Please note, you can take advantage of any in store promotions or sales prices when selecting a bike from the Halfords store network. If you are selecting a bike outside of the Halfords range which will be sourced via our Independent Bike Dealer network, we will always source the current model of the bike at the RRP. This is to maintain achieve consistency of price and availability across our customer base.

Can I add my own money to the value of an LoC in order to get a more expensive bike?
Halfords cycle2work does not allow employees to 'top up' or add to their Letter of Collection (LoC) using their own funds in-store, as both employee and employer would then jointly own the bike. This could create a potential conflict of interest when it comes to the end of the hire period.
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.

What is the maximum value of equipment I can obtain through cycle2work?

The Office of Fair Trading has issued a Group Consumer Credit Licence allowing any employer to run a cycle2work scheme. The license allows you to hire equipment up to the value of £1,000 inclusive of VAT. An employer can then choose to offer whatever range of values within the £1000 limit that they deem appropriate. To see the values available in your scheme, please click "apply now" and review the Min and Max options within the "letter of collection value" section. For more information about your scheme limit, please review your internal communications.

I've only been with my employer for a short time. Can I take part?

Your scheme criteria will determine when you are able to apply.

Can a Letter of Collection be used to get a bike for a family member, partner or friend?

No. The cycle must be used by you, mainly for commuting to work. For example: journeys made between the home and workplace, or part journeys (e.g. to the station), or for journeys between one workplace and another.

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 visit a store, Halfords can arrange to get the bike to you.

What happens if I do not 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 your payroll department will arrange for the remaining salary reductions to be taken from your net pay i.e. after tax and National Insurance have been deducted. You cannot return the cycle and have your salary re-adjusted.

Who owns the equipment?
The legislation that governs a cycle to work scheme states that the Employer must own the equipment. There can be no automatic right for the Employee to own the equipment at the end of the Agreement. If they do, they cannot claim the tax exemption. Therefore a cycle to work scheme operates as a loan: the Employer is technically loaning the equipment to the Employee for a fixed-period of time. Although Employees do not actually own the equipment, they remain custodian of the equipment and are free to use it as they wish, providing it is mainly for cycling to work.
Can I select more than one bike?

Your scheme criteria will determine whether this is allowed. However the legislation does not prohibit the selection of two cycles providing that both are used 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.

Can I take part in more than one scheme?

You can technically apply again each time your employer runs a scheme, however, your employer may decide to prevent you from joining another scheme until your first Hire Term has lapsed.

Who is eligible for the cycle2work scheme?

Employers of all sizes across the public, private and voluntary sectors can implement a tax-exempt loan scheme for their employees. To maximize the benefit of implementation, it is desirable that participation in a scheme should be as broad as possible. To qualify for the tax exemption, the cycles and cyclists’ safety equipment loaned by the employer under the scheme must be available to employees generally with no groups of employees excluded.

How can an Employer benefit from the cycle to work scheme?

By operating a cycle to work scheme, an Employer can expect to

  • Improve their reward and recognition program
  • Make savings from Employer's National Insurance contributions
  • Contribute to an environmental or green transport policy
  • Release valuable car parking space with less people using cars to commute
  • Encourage a fitter, healthier lifestyle


I need help with my cycle2work application: who should I contact?

Halfords are here to help you every step of your application

- Cycle2Work helpdesk: available at 08450 778850 and cycle2.work@halfords.co.uk, this team can handle general enquiries about the scheme ranging from what is cycle2work, how much can I save, what is the availability of a bike?

- Halfords store network: the Bikehut team at any of our 460+ stores can provide advise on bike type, sizing and maintenance.

- Halfords Head Office Bike Technician: if you would like some help matching your specification and requirements to a bike within the Halfords range, please provide full details to the cycle2work helpdesk. They can refer your enquiry to our Bike Technician who can make recommendations, taking in to consideration your requirements and budget.

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