Thanks to Halfords cycle2work, your employer can provide you with a new bike and the appropriate cycling safety accessories and – providing the main use of the bike is for commuting to work – you will incur no tax or National Insurance on the benefit. This means you'll save a vast amount of money compared to purchasing a new bike outright. What's more, by paying for this monthly from your salary (over a period of 12 or 18 months), you'll hardly notice the cost – this is called a salary sacrifice.
Here are some key facts...
What is a salary sacrifice?
Salary Sacrifice is a contractual agreement whereby your salary is reduced by a given amount in return for the employer providing a benefit, usually of the same value. The reduction in salary means your National Insurance contributions, and in some cases tax contributions, will actually be reduced.
Are you eligible?
Your employer must be willing to run the scheme before you can acquire your bike. The scheme is available to UK taxpayers who pay their tax under the PAYE system.
£1000 is the maximum you can spend!
You can spend anything from £100 up to a maximum of £1,000 on a bike and accessories. This can work out to as little as £5 per month.
It`s really simple to join - see our guide to getting started.
DON'T FORGET - YOUR EMPLOYER NEEDS TO HAVE SIGNED UP BEFORE YOU CAN JOIN!
Get your company onboard