how it works
The Halfords cycle2work scheme is run in strict accordance with the legislation and reflects the current tax position and Department for Transport Guidance. All aspects of our documentation, which can be provided free of charge, are approved and in-line with the legislation.
The Halfords cycle2work scheme is very simple to set up and manage. We run schemes via our secure and fully automated web site, and also provide you with the marketing support to help promote the scheme to your colleagues, backed by a dedicated employee hotline to answer any queries.
Here’s what you need to know
- Under the scheme a new bike and safety accessories are purchased by an employer and then leased to the employee over a fixed Hire Term, usually 12 or 18 months
- The scheme is usually implemented via a salary sacrifice arrangement and employees agree to a monthly salary sacrifice from their gross salary in order to cover the cost of the benefit
- Participation in the scheme is voluntary for employees and the tax break for the bike and accessories will only apply where the employee's primary use of the bike is mainly for commuting to work
- Employees may obtain a bike and/or safety accessories up to a maximum value of £1,000 tax-free
- ITS FREE TO SET UP!
EASY to join and simple to administer!
Our advanced online system makes the whole process really simple for you to administer from start to finish
7 Easy steps...
2.
PromotionYour employee needs to know how to participate. We’ll help you spread the word through a marketing campaign that suits your business.
3.
SelectionEmployees can visit one of our 435 stores or go online to choose the bike and safety accessories they want.
4.
ApplicationYour employee uses our secure website to select a Letter of Collection (LoC) amount to cover the value of the bike and safety accessories. They will then be required to complete a hire agreement, which is then passed on to HR for approval.
5.
CollectionApplicants can then download the LoC and redeem in store against their chosen bike and accessories.
6.
ReconcilliationHalfords will invoice your organisation once all the LoC's have been issued. Our system contains the information your payroll team will require to begin making the salary sacrifice reductions.
7.
TransferAt the end of the Hire Term, you may choose to transfer the ownership of the equipment to the colleague, in which case, Halfords will support you during this process.
