FAQs

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 cycle to work?
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. 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.

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.

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.

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?
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 selecting it. This could include:

  1. cycle helmets which conform to European standard EN 1078,
  2. bells,
  3. bulb horns,
  4. lights including dynamo packs,
  5. mirrors and mudguards to ensure the riders visibility is not impaired,
  6. cycle clips,
  7. dress guards,
  8. panniers,
  9. luggage carriers and straps to ensure luggage is carried safely,
  10. locks and chains to ensure cycle can be safely secured,
  11. pumps,
  12. puncture repair kits, tool kits and tyre sealant to allow for minor repairs,
  13. reflective clothing,
  14. white front reflectors,
  15. and spoke reflectors.
  16. child seats

Current guidance from HMRC states that bike Satnavs and cycle computers are not allowed within the Cycle to Work scheme. 

Can an employee enter into more than one Hire Agreement concurrently?
An employee can have more than one Hire Agreement for Cycle2Work with you at a time. However you must make sure that any combination of Hire Agreements does not take the employee below the National Minimum Wage. As an employer, you may chose to remove this option restricting employees to one hire term at a time.

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. 

Can I add my own money to the value of an LoC in order to get a more expensive bike?
No. To be eligible for the tax break, the bike must remain the sole property of the employer for the duration of the hire period. For that reason the selected letter of collection must cover the full cost of your selection (bike and accessories) and you cannot add your own funds of any description to the transaction. 

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.

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. 

What is the maximum value of equipment I can obtain through cycle to work?
The Office of Fair Trading has issued a Group Consumer Credit License allowing any employer to run a cycle to work 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. 

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.
www.halfords.com

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.

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.

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. 

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.

For more information contact our helpdesk on 0800 458 7929