Cycle2Work

Cycle2Work
Cycle2work

How does it work ?

Cycle2Work is a government initiative which offers the most cost-effective way to get new cycling equipment. The scheme is ran through participating employers, meaning you do not have to pay tax or national insurance on these products – saving you up to 47%! This reduced cost is then simply deducted out of your payslip over 12 or 18 months.

How to apply

How to apply

  • 1

    Employer code

    If your employer has a live scheme, you’ll either be given an employer code to sign up directly through Cycle2Work, or be pointed towards your benefits portal to apply.

  • 2

    Choose your value

    Choose your bike and/or accessories online at Halfords or Tredz before applying so you know the total value to apply for.

  • 3

    Sign up

    Now that you have your employer code and total value, you’re ready to sign up.

  • 4

    Approval

    Once your employer has approved your application, you’ll receive a ‘letter of collection’.

 
How to buy icon

How to buy

  • 5

    Use your ‘letter of collection’

    You can buy your bike and/or accessories in store or online at Halfords or Tredz or you can shop at one of the Independent Bike Shops we work with. Visit our store locator to see participating retailers in your area.

  • 6

    Pay monthly

    Once your scheme starts, the salary sacrifice will be deducted out of your payslip over 12 or 18 months.

  • 7

    End of scheme/Ownership

    Once your hire period has come to an end, we’ll 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!

 

What could I save ?

The amount you can save is dependent on the tax band you’re in. Use our savings calculator below to see how much you can save.

 

Cycle2Work


days free insurance

Learn more

Benefits of Cycle2Work

  • TITLE-TEXT

    A fantastic way to boost your mental health

    Reduce stress and improve your mood, productivity and sleep quality

  • A simple way to save money icon

    A simple way to save money

    Decrease unnecessary spending on fuel, parking, public transport and gym memberships

  • benfits-icon mr-md-20 mb-5 mb-md-0

    A great way to help the environment

    Introduce cycling into your life to do your bit for the planet by reducing emissions

  • A quick way to maximise your time icon

    A quick way to maximise your time

    Stop wasting hours spent in traffic or waiting for public transport and start saving time by working out on your commute 

  • An easy way to stay healthy icon

    An easy way to stay healthy

    Feel good, keep fit and raise your immune system, preventing illness such as heart disease and cancer

Frequently asked questions

Cycle2Work is an employee benefit which is operated as a salary sacrifice, meaning you agree to give up some of your gross salary (before tax) in exchange for a benefit e.g. a new bike and accessories. By having a salary sacrifice, you are reducing the amount of income you pay tax and National Insurance on which is where the savings are made.

The amount you can save is dependent on the tax bracket you are in. The latest tax rates can be seen on the Government website. 20% taxpayers can save 32%, 40% taxpayers can save 42%, and 45% taxpayers can save 47%. Use our Savings Calculator to work out exactly how much you will pay monthly – and how big your savings are!

In short, 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!

Once your hire period has come to an end, we’ll 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!

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.

Some employers use a benefits portal to run the Cycle2Work scheme. The step-by-step application process will be listed on the portal. If you are not sure if your employer uses a benefit provider, or you are not sure who the benefit provider is, please contact your HR Department.

Every employer has a different application window. You may have seen this advertised around your workplace or via email. If you are unsure when your Cycle2Work scheme opens and closes, please contact your HR department.

This can be different for every employer. You may have seen this advertised around your workplace or via email. Please contact your HR Department if you do not know what your scheme’s maximum limit is.

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, or add your own money to you LoC

As long as you don’t exceed your employees limit, you can technically apply more than once – providing the deductions from your payslip don't take you below the National Minimum/Living Wage. However, depending on your employer it is not always possible to make a second application so you must always check with your HR Department first

Technically once you have submitted your application, you are unable to amend it. What you can do in some cases is cancel your application and reapply for your new amount – however this is not always possible, so we advise that you ask your employer for their cancellation terms and conditions!

Yes, you have 14 days to cancel your Cycle2Work application from the date that you sign your hire agreement. To do this, please use the cancellation link that you should have received via email. Alternatively, contact us with your reasons for cancellation

Before you spend your Letter of Collection, contact us and we will extend your Letter of Collection for you.

Yes, you must spend the whole Letter of Collection as you can only use it once, and the amount you have applied for will be the set amount that you pay, for even if you spend less.

No. You are not allowed to use your own money to add funds or ‘top up’ your Letter of Collection so it is important you apply for the correct amount.

Your hire agreement is essentially the 'terms and conditions' of Cycle2work, which you will agree to when applying. Your hire period is the period that this agreement is valid for. It's traditionally also the period in which you will pay your salary sacrifice (this tends to be 12 or 18 months). However, there may be circumstances where your salary sacrifice may be longer and your costs spread over a longer period of time. This will be at your employers discretion and you would be notified if this was the case.

You can shop in-store at Halfords or Tredz. All you need to do is present your Letter of Collection and ID along with your items at the till.

If you prefer to shop online, you can redeem your Letter of Collection online at www.tredz.co.uk or by using Click & Collect at www.halfords.com. All you need to do is add your chosen items to your basket and then enter your LoC number at checkout.

You can also redeem you LoC at a range of Independent Bike Shops who we have partnered with.

 

First, go to our Store Locator and choose your local bike shop. We will then need to transfer your Letter of Collection before you visit the store. To do this please contact us on 0345 504 6444 or email loc.allocation@halfords.co.uk.

A small number of bike shops are currently charging an administration fee to accept Cycle2work letters of collection. To avoid this please contact us on 0345 504 6444 or email cycle2.work@halfords.co.uk and the team will do their best to look for an alternative bike or shop to redeem in.

We work with a range of independent bike shops that can adapt bikes to suit your needs. These include:

  • Jorvik
  • Team Hybrd
  • Kids & Family Cycles
  • London Green Cycles
  • To redeem in any of these shops, we will need to transfer your Letter of Collection before you visit the store. To do this please contact us on loc.allocation@halfords.co.uk or 0345 504 6444.

Please ensure you have done the following:

  1. Selected Cycle2Work as the payment option
  2. Entered your Letter of Collection number as LOC- followed by the number.
  3. Entered your surname EXACTLY as it is appears on your Letter of Collection – this field is case sensitive!

If you have tried all of the above steps, and you are still have issues, please contact us and we will be able to help you further.

This is very unlikely, however every company and employee is different so please speak to your employer for more advice.

No, the items that you select must be for yourself.

Looking after your bike is your responsibility, however, to make this a whole lot easier we offer all of our members 14 days free insurance on bikes purchased from Halfords. This insurance is NOT applied automatically and you must activate it here. Please note, if you bike is damaged or stolen and you do not have insurance, your payments will continue regardless.

You can sell your ex-cycle-to-work bike at the end of your hire period once ownership has been transferred, you will need to have chosen one of the following options from your end of hire survey which you will receive via email towards the end of your hire period:

 

Extended hire - Ownership transferred after 5 years

Fair market value - To be paid in a Halfords store, once paid ownership transferred

You as the customer are responsible for the maintenance of your bike to ensure it is usable to commute to work.

You will need to notify us if you have any change in contact details, particularly email. Please notify our customer contact team of any contact changes by calling 0345 504 6444 or emailing cycle2.work@halfords.co.uk

This could happen if your scheme is not yet opened, has already closed, or your employer code is incorrect. Please contact your HR Department who can give you all the information on when and how to apply.

You can get any adult bike type, and we are proud to offer 98% of brands in the UK market - including over 100 electric bikes! There is also a huge range of cycle safety accessories available for you to choose from, including:

  • Cycle helmets
  • Reflectors and lights, including dynamo packs
  • Bike locks and chains
  • Mudguards and mirrors
  • Bags, baskets, phone holders, panniers and pannier racks
  • Cycle clothing, shoes, cycle clips and dress guards
  • Hydration packs, water bottles and holders
  • Bells and bulb horns
  • Child safety seats and trailers
  • Pumps, puncture repair kits, tyre sealant and cycle tools
  • Bike lube and cleaning equipment
  • Tyres, inner tubes & wheels
  • Pedals, saddles, drivetrain & brakes
  • Battery packs and chargers for electric bikes
  • Adaptions for disability/mobility issues
  • For a definitive list of what accessories are eligible, please read the HMRC guidance here. Please note scooters are NOT permitted on the scheme

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 Cycle2Work 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!

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.