Improve employee wellbeing and save on National Insurance contributions
What is Cycle to Work?
Cycle to Work allows employees to save money on bikes and cycling equipment from Halfords and a network of participating retailers, encouraging a healthier commute.
How does it work?
Things to consider when setting up Cycle to Work
At what times of the year will you give employees the ability to apply?
- Should employees be able to apply all year round?
- If not, how many windows will you run, and what will the dates be?
How would you like to manage allowances and repayments?
- You can set different monetary limits for a Letter of Collection, up to £1,000 per individual. This is especially useful for employees on lower band salaries, as repayments may take them below Minimum Wage
- How many months would you like to spread monthly repayments over?
How would you like to process applications?
- Pre-approval - you will need to supply additional information in your eligibility file to allow our system to perform eligibility checks. If you have a Direct Debit set up with RG, employees will be able to receive their Letter of Collection instantly after placing their order
- Post-approval - an administrator will need to manually review applications. Letters of Collection are dispatched after all applications for the window have been approved
How would you like to pay for the orders placed during each window?
- We recommend setting up a Direct Debit, so payments to RG are automated, and we can dispatch Letters of Collection instantly (on pre-approval)
- If you choose not to set up a Direct Debit, we will set up an invoice date and frequency that suits you. We’ll invoice you for any applications approved before this date. We’ll dispatch Letters of Collection after receiving payment.
How would you like to manage the end of hire agreements?
- Managed Extended Hire - You transfer the ownership of bikes to RG who will then transfer ownership of bikes to Halfords, so they can manage the end of hire directly with employees. You will need to sign an addendum to your Cycle to Work terms to offer this.
- P11D - to transfer the ownership of the bike to the employee at the end of the scheme, you will need to report its value as a taxable benefit in kind (BIK) to HMRC on the employee's P11D form.
How many payrolls are there in your business? For each we will need:
- Name (e.g. Monthly) - required to assign users to the correct payrolls
- Frequency (monthly, weekly, fortnightly)
- First Pay Day to set up in the system (i.e. date employees are paid)
- First Cut-off Date (i.e. date the first deduction report will be available)
- Approver - one or more users to manage applications in each payroll
Who will manage your Cycle to Work programme on SmartPay™?
- Master Approver - can access payroll information, application details and product configuration settings for all benefits set up on SmartPay™
- Payroll Approver - can access all payrolls set up on SmartPay™
- Product Approver - can manage Cycle to Work configuration settings
Additional information for your eligibility file:
- Payroll name - required for each employee
- Date of birth - required on Pre-Approval
- Annual gross salary - required on Pre-Approval
- Weekly hours worked - optional on Pre-approval (system default is 40)
- Weeks worked per year - optional on Pre-approval (system default is 52)
- Other gross salary deductions - optional on Pre-Approval
- SmartPay™ Limit - optional, if you are setting a maximum allowance for the total amount of each employee’s RG benefit applications
- Cycle to Work Limit - optional, if you are setting a maximum allowance for each employee’s Cycle to Work applications