Here are some of the common questions that come up for our clients. Please reach out to your Client Success Manager or Client Support if something isn't covered here.

Hire Agreement amount or Letter of Collection needs to be changed

Once a Cycle to Work application has been approved the Hire Agreement and Letter of Collection cannot be amended. If the member would like to amend the amount, they can do so by cancelling their order (within 14 days) and provided the Letter of Collection has not been spent.

How long does it take until the Letter of Collection is sent to the employee after their application is approved?

As soon as the application is approved, Halfords send the LoC to the employee via email.

Please note that all emails are sent to the email address the employee has used to make their application and some employees forget they may have used their personal email instead of the work email.

The process is instant because it's automatic - RG sends information to Halfords as soon as an application is approved via API /please note that the approval period is longer for clients on post-approval, because an administrator needs to go and manually approve the application in the Reward Manager/ and the API triggers a command which automatically sends the LoC.

When is the Letter of Collection dispatched?

For clients on pre-approval it's dispatched right away, and for clients on manual approval the LoC is dispatched after an administrator approves the application.

What email address are the Letter of Collection's coming from?

It's cycle2.work@halfords.co.uk

What is the subject of the LoC email?

The subject tends to start with “Here is your Cycle2Work………”

Are there any domains or IP addresses the client needs to whitelist to make sure their employees are receiving their Letter of Collections as expected?

Only the email cycle2.work@halfords.co.uk if needed

Employee wants to cancel prior to the close date of an application window

The window dates are not linked to application cancellations. For example, the applications can still be pending although the window has closed a week ago, or instantly approved although the window is still open. An employee can cancel their Cycle to Work order within 14 days of receiving their Letter of Collection (providing it hasn't been spent). For more information on refunds, please see the Cycle to Work refund process.

Employee wants to cancel the application after the window closes and the Letter of Collection has been issued

Please be aware that the cancellation period is 14 days! If the employee has received their Letter of Collection and would like to cancel within the initial 14-day cancellation period, they can do so on the Order History page on their profile. In case the employee needs to cancel their Letter of Collection after the initial 14-day period, they can request this from their employer and provide a reason for the request on the Order History page. Refunds can only be processed if the Letter of Collection has not been spent. No cancellations can be made outside the 14-day period without prior agreement between the client and Reward Gateway. Full details around the refund process in this article - Cycle to Work refund process. 

How long is the Letter of Collection valid for?

Halfords have a 4 month expiry on every Letter of Collection. If an employee doesn't spend their Letter of Collection during this time, they cannot get a refund. The employee can request an extension on their Letter of Collection directly from Halfords by calling their Cycle2Work team on 08450 778850 or via email cycle2.work@halfords.co.uk

What are 'hire periods', 'hire agreements', and 'salary sacrifice period'?

Hire period: the period for which this agreement is valid; always 12 months

Hire agreement: the ‘terms and conditions’ of Cycle2Work that are signed during the application process

Salary Sacrifice term: the period of repayment; can be 12,18 or 24 months

What happens if the employee leaves or gets made redundant before the end of the hire period?

If the employee leaves before the end of the hire period, they must pay their employer the balance of the amount outstanding. This should be deducted from their final net pay. The employee will no longer be able to benefit from the tax exemption. 

Employees have access to this information and give their agreement on the second step of their user journey via the Pre-Contract Information which states:

"What if I leave employment early or I’m made redundant?
If you leave your employment before the end of the hire term, the outstanding balance of your Hire Agreement will be taken from your remaining salary payments, and you can continue to use the Goods until the hire period ends. You’ll then be given the opportunity to buy the Goods for their fair market value. However, this transfer of ownership is the subject of a separate agreement and isn’t governed by the Hire Agreement."

The information is also available on the website in the FAQ section for employees benefit:

"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."

Please note, Reward Gateway does not provide tax advice and the above

information is publicly available through the relevant HMRC channels.

More information can be found on the HMRC website and in this HMRC Cycle to Work guidance document.

What happens to salary deduction for Cycle to Work during Maternity or Sick Leave?

If an employee is absent from work during the period covered by their Cycle to Work Hire Agreement, their salary reduction will remain in place and will apply to any pay received (including sick pay or maternity pay).

What happens to our employees in Jersey or Guernsey?

Employees who are based in Jersey or Guernsey are still eligible to apply for Cycle to Work, however they are required to pay a Goods Service Tax at 5% on all goods over the value of £240. 

The Net deduction option - are the net deductions reflected as such in the payroll report?

Yes, there is a seperate column in the report which shows the application type (e.g. net or gross) against every application.

How long would it take to switch the Net deduction option?

Upon request a Client Support specialist can turn on the option on your scheme almost instantly.