The RCT Source

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.

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. 

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.

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.

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

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.

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?

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.

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.

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.

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.

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

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.

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.

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.

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, white front reflectors, and spoke reflectors.
14. child seats

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

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.

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.

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.

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.