Below is a copy of our FAQs which will be available to employees onsite within the Help & Support section. Any additions or amendments to these FAQs can be made via the client's Client Success Manager or via Client Support.
What is Cycle to Work?
Cycle2Work is a great employee benefit which offers the most cost-effective way to get new cycling equipment.
The scheme is run via a salary sacrifice meaning you won’t pay tax or national insurance – this saves you between 32% and 42% on your new bike and accessories. This reduced cost is simply deducted out of your payslip over 12, so no need to worry about large one-off costs!
What is the maximum value I can apply for?
The maximum value you can apply for will depend on minimum wage requirements and the maximum Letter of Collection amount your employer will set. This will be clear after you calculate how much you can spend on step two of the checkout.
How do I know how much to apply for?
We recommend finding your perfect bike and accessories before applying so you know exactly what amount to apply for. This way you won’t apply for too much or too little – this is really important to get right because you cannot amend your application once you have been approved.
Can I add my own money to a Letter of Collection?
No. You are not allowed to use your own money to add funds or ‘top up’ your Letter of Collection.
Can I use Cycle to Work to get a bike for a family member, partner or friend?
No, the items you select must be for yourself.
I already own a bike – can I still apply?
Of course! You may want to get a whole new upgrade, or a second bicycle for a different season or terrain. Just want accessories? Using the Cycle to Work scheme for accessories only is a very popular option for employees who already own a bicycle and just want to upgrade the rest of their equipment!
Can I get more than one bike?
Yes! If you would like to get two bikes you certainly can – as long as they are both suitable and safe for you to ride, and your total doesn’t exceed your scheme’s maximum limit.
What accessories are available?
We partner with Halfords Cycle2Work who are proud to offer 98% of brands in the UK market, including electric bikes.
For all the stores available, please visit the Store Locater.
The cycle to work legislation doesn’t include a list of ‘approved’ products so HMRC stipulates that a common sense approach should be taken. Permitted equipment includes:
- Cycle helmets conforming to European Standard EN 1078
- Bulb horns
- Lights including dynamo packs
- Mirrors and mudguards
- Cycle clips and dress guards
- Panniers, luggage carriers and straps
- Locks and chains that safely secure your cycle
- Pumps and puncture repair kits, tool kits and tyre sealant to allow for minor repairs
- Reflective clothing and reflectors
- Child seats
Accessories that are not available include forks, frames, Sat Navs, cycle computers, Go pro cameras, turbo trainers and cycle racks. Items such as frames and forks are cycle components not safety equipment: safety equipment is something you add to the cycle or the cyclist to make cycling safer.
Where can I get my bike and accessories from?
You can shop in-store at Halfords, Tredz or one of the independent shops we work with. If you prefer to shop online, you can redeem your Letter of Collection online at Tredz.co.uk or by using Click & Collect at Halfords.com. If you’d like some help or advice, get in touch with the Cycle2Work Customer Support Team on 0345 504 6444.
Do I have to get a bike? Can I just get accessories?
Yes! You are more than welcome to just get cycle accessories. Treat yourself to a new helmet, clothing for every season, locks, lights and much more!
What is a Letter of Collection?
An LoC is exactly what it says - A letter that you use to collect your chosen bike and accessories! You will be sent this via email or post once your application is approved.
Do I have to spend my Letter of Collection all at once?
Yes, we advise you spend the whole Letter of Collection as you can only use it once, and the amount you have applied for will be the amount that you pay for even if you spend less.
Can I amend my application once I've applied?
Technically once you have submitted your application, you are unable to amend it. What you would need to do is cancel your application and reapply for your new amount.
Do I have to cycle to work every day?
No, the government guidelines state that you should use your bike and accessories for commuting for at least 50% of its usage however you do not have to log your bikes mileage and we thoroughly encourage you to use your bike in your spare time.
What happens if my bike gets damaged or stolen?
This one’s down to you! Looking after the bike is your responsibility, however to make this a whole lot easier we give all of our members:
- an optional 8 Weeks FREE Insurance
- Lifetime safety checks on all cycles obtained through the scheme
- Lifetime guarantee on Halfords brand cycles
What happens to the bike at the end of the scheme?
Once your hire period has come to an end, the Cycle2Work team will get in touch to discuss your options. This will include the opportunity to extend the hire of the cycle at no additional cost until HMRC deem the value to be negligible. This is typically 4 or 5 years, and once this agreement has finished you will become the rightful owner!
Who owns the bike?
Halfords are the legal owners of the bike from the start of the hire period, the bike is leased to you. Once you reach the end of your initial 12 month hire period, ownership of the bike will then automatically be transferred to you via Halfords managed extended hire.
What are 'hire periods' and 'hire agreements'?
Your hire agreement is essentially the ‘terms and conditions’ of Cycle2Work, which you will sign when you apply. Your hire period is the period that this agreement is valid for - this is also the period in which you will pay your salary sacrifice.
What if I leave my company within my Hire Agreement?
We completely understand that life can be unpredictable. If you were to leave your company or be made redundant in your hire period, the remaining gross balance would simply be deducted from your last payslip.
How does Cycle to Work differ to Interest Free Finance that some retailers offer?
Through Cycle2Work, you will save between 32% and 42% through tax and national insurance and the cost will simply be deducted from your payslip. You’ll also get loads of free extras, discounts and benefits on Cycle2Work which you would not get on Interest Free Finance!
For example, a bike costing £1000 could cost as little as £56.60 a month over 12 months on Cycle2Work - compared to £83.33 through Interest Free Finance.
I live in Jersey or Guernsey, does this make a difference?
Residents of Jersey or Guernsey are required to pay a Goods Service Tax at 5% on all goods over the value of £240.