Cycle to Work+ - FAQs - Is the Net Deduction Option Safe to Use? (for UK only)

The employer is providing the employee with an interest free loan to obtain a cycle and/or cycle safety accessory for the purposes of commuting to and from work. The loan will be provided to the employee as a letter of collection which can then be redeemed within any Halfords store in the UK or via Halfords.com. The amount is then deducted from the employee’s net pay over a period stipulated by the employer e.g. 12 months. 

As you will see from the following link on the government website an employee on NMW or NLW is able to avail of a loan and then pay this back to their employer through a net deduction arrangement.

https://www.gov.uk/understanding-your-pay/deductions-from-your-pay

As you can appreciate, we are not tax and legal advisor's and recommend that you seek your own advice if further guidance is required.