Cycle2Work

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How does it work ?

Cycle2work is a government initiative which offers the most cost-effective way to get new cycling equipment. If your employer has joined Cycle2Work, you won’t have to pay tax or national insurance on these items – saving you up to 47%! The reduced cost is simply deducted from your payslip over 12 or 18 months.

You can even access promotional and seasonal offers such as Christmas and Black Friday, on top of Cycle2Work savings!

Are you a business interested in our Cycle2Work scheme?
Learn more

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.

Is my employer signed up?
2

Choose your value

Choose your bike and/or accessories online at Halfords or Tredz (including those on sale or promotion) or from one of 100s of independent retailers 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 apply.
4

Approval

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

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

At the end of your agreement, we’ll get in touch to discuss what you want to do next. This will include the option to enter a zero-cost ‘extended hire’ arrangement. With this option, the items will remain in your possession until HMRC deem the value to be negligible. Once the happens, you’ll automatically become the rightful owner!

What could I save ?

The amount you can save is dependent on your tax band. Don't forget, you can access offers and promotional savings such as Christmas and Black Friday on top of Cycle2Work savings. Use our calculator below to see how much you can save.

Calculate Saving

What is a letter of collection?

A letter of collection is what you’ll use to purchase your bike and/or accessories.
Once you’ve applied and been approved for Cycle2Work, you’ll receive confirmation via email.
To redeem at Halfords or Tredz online, choose ‘Cycle2Work’ as a payment method at checkout and enter your Letter of Collection number.
You can also redeem in store by taking your Letter of Collection with you.
If you’d prefer to redeem your Letter of Collection at one of the independent bike shops we work with, please contact us on 0345 504 64444 or c2wcustomerenquiry@halfords.co.uk with the name of the store you would like to use, the value of your letter of collection and your letter of collection number. We’ll then allocate to the store within 24 hours.

14 days free insurance

Learn more

Benefits of Cycle2Work

A fantastic way to boost your mental health

Reduce stress and improve your mood, productivity and sleep quality

A simple way to save money

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

Frequently asked questions

1. How does it work?

How can I save through Cycle2Work?

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’re reducing the amount of income you pay, tax and National Insurance, which is where the savings are made.

The amount you can save is dependent on your tax bracket. The latest tax rates can be seen on the Government website. 20% taxpayers can save 28%, 40% taxpayers can save 42%, and 45% taxpayers can save 47%. Don't forget, you can also access exclusive Cycle2Work deals and any promotional and seasonal offers like Christmas and Black Friday on top of these savings! Simply use the listed sale price when making your application. Use our Calculator Saving option above to work out exactly how much you will pay monthly and how big your savings are!

Do I have to cycle 2 work every day?

In short, no! The government guidelines state that you should aim to use your bike and accessories for commuting for at least 50% of its usage - you do not have to log your bike’s mileage and we thoroughly encourage you to use your bike in your spare time!

Will I own the bike and/or accessories?

There are options for you to own the bike and/or accessories after the initial ‘hire’ (salary sacrifice). Please see the below question for all the options available.

What happens to the bike/accessories after the initial ‘hire’?

For UK Tax purposes, before your initial 'hire' (salary sacrifice) period has come to an end, we’ll be in touch to offer you three options of dealing with any remaining taxable value.

Option 1: You’ll have the option to enter a zero-cost 'extended hire' arrangement directly with Halfords until the value has depreciated to a point of negligible tax value. When this happens, Halfords will then transfer ownership of the bike and/or accessories, so you become the rightful owner. This solution maximises your savings.

Option 2: You can take immediate ownership of the bike at the end of initial 'hire' (salary sacrifice) by making a payment direct to Halfords for the "fair market value" of the bike. The "fair market value" as determined by HMRC is usually 18% or 25% of the original value. The bike and/or accessories will then be yours immediately.

Option 3: You have the option to return the bike at the end of the initial 'hire' (salary sacrifice) period to your local Halfords store where it will be safety checked and donated to ReCycle where bikes are refurbished and sent to Africa.

Don’t forget, you can apply for Cycle2Work again and take out another bike and/or accessories even if you have decided to ‘extend the hire’ and keep the items.

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 during the initial ‘hire’ (salary sacrifice) period with your employer, or in some cases with Halfords, the remaining gross balance would simply be deducted from your last payslip. If, however, this were to take place after you had chosen to ‘extend the hire’, there would not be any changes as the ‘extend the hire’ is a new agreement between you and Halfords.

2. Application

My employer Cycle2Work scheme is run by a third-party benefit provider, how do I apply?

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’re not sure if your employer uses a benefit provider, or you’re not sure who the benefit provider is, please contact your HR Department.

When can I apply?

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.

What is the maximum value I can apply for?

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.

How do I know how much to apply for?

We recommend finding your perfect bike and/or accessories before applying, so you know exactly what amount to apply for.

If the bike and/or accessories you’re choosing are on sale or if you’re using a Cycle2Work exclusive discount code, you’ll need to factor these in too. For example, if the bike you would like to choose is normally £1000 but has 25% off during a sale at either Halfords or Tredz, you would only apply for £750.

This way you won’t apply for too much or too little – this is really important to get right because you can’t amend your application once you’ve been approved or add your own money to your Letter of Collection (LoC).

Can I apply more than once?

As long as you don’t exceed your employee’s 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’s not always possible to make a second application, so you must always check with your HR Department first.

Can I amend my application once it has been submitted?

Once you’ve submitted your application, you’re unable to amend it. In some cases, you may cancel your application and reapply for your new amount. However, this isn’t always possible, so we advise you ask your employer for their cancellation terms and conditions.

Is It possible to cancel my Cycle2Work application?

Yes, you have 14 days to cancel your Cycle2Work application from the date you signed your agreement. To do this, please contact our team with your reasons for cancelling.

What are the hire periods and hire agreements?

Your ‘hire’ agreement is essentially the ‘terms and conditions’ of Cycle2Work, which you will agree to when applying. Your initial ‘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 are spread over a longer period. This will be at your employer’s discretion, and you would be notified if this was the case.

Please also note that at the end of your initial ‘hire’ (salary sacrifice) period with your employer, or in some cases Halfords, there is the option to ‘extend the hire’. The ‘extended hire’ agreement is between you and Halfords and helps you deal with any remaining taxable value without incurring any additional cost. Once HMRC deems the value of the items to be negligible, the bike and or accessories automatically become yours.

I'm an employer looking to set up a Cycle2Work scheme for my employees, how can I do this?

'If you are an employer wanting to register for a Cycle2Work scheme, please click here.

3. Redemption

My Letter of Collection has expired. What do I do?

Your LOC expires after 4 months, please note we are only able to provide a 30 day extension to your LOC. To request your extension, please email us at c2wcustomerenquiry@halfords.co.uk. Unfortunately for any LOCs beyond this timeframe we are unable to extend, therefore we fully encourage you to redeem within this period.

Do I have to spend my Letter of Collection all at once?

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.

Can I add my own money to my Letter of Collection?

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.

What are ‘hire periods’ and ‘hire agreements’?

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.

Where can I get my bike and accessories from?

You can redeem your Letter of Collection at a range of Independent Bike Shops who we have partnered with.

You can also 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 Letter of Collection number at checkout.

At Halfords and Tredz, you can access exclusive Cycle2Work deals, and any promotional and seasonal offers like Christmas and Black Friday on top of these savings! You will need to factor any deal into your application. For example, if the bike you’d like to choose is normally £1000 but has 25% off during a sale at either Halfords on Tredz, you would only apply for £750 .

I want to spend my Letter of Collection at an independent bike shop. How do I do this?

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 c2wcustomerenquiry@halfords.co.uk and the team will do their best to look for an alternative bike or shop to redeem in.

I want to redeem in a shop that is able to meet the needs of my disability, and which provides adapted bikes. How do I do this?

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.

I am trying to redeem online, but its not accepting my Letter of Collection number. What do I do?

Please ensure you have done the following:

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

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

Will this affect my other employee benefits?

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

4. Responsibilities

Can I use Cycle2Work to get a bike for someone else?

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

What happens if my bike gets damaged or stolen?

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 your bike is damaged or stolen and you don’t have insurance, your payments will continue regardless.

Can I sell my Cycle2work bike?

You can sell your ex-Cycle2Work 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

Who is responsible for the maintenance of the bike?

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

With Halfords, you get Lifetime Guarantee on all Halfords own bike brands and Halfords exclusive brands for the original owner.*T&Cs apply.

You can also take advantage of our free bike checks at Halfords stores.

How do I change my contact details?

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 c2wcustomerenquiry@halfords.co.uk

I am trying to apply but my employer code is not working. What do I do?

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.

5. What can I get?

What bikes and accessories are available?

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

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 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!

Can I get more than one bike?

Yes! If you’d like to get two bikes you certainly can – as long as they’re both suitable and safe for you to ride, and your total doesn’t exceed your scheme’s maximum limit.

If you have used Cycle2Work before and still have a bike and/or accessories because you either are in 'extended hire' period with Halfords, or you chose to take ‘immediate ownership', you can apply for Cycle2Work again and take out another bike.

Cycle2Work Retailers

Find Cycle2Work retailers close to you or browse a full list

Near to me
Full List

Locations

Enter your postcode to find Cycle2Work retailers close to you.

Matlock, Derbyshire, 127 Smedley Street, Matlock, Derbyshire, DE4 3JG View Website

c2wcustomerenquiry@halfords.co.uk

Cycle2Work

How does it work ?

How to apply

Employer code

Choose your value

Sign up

Approval

How to buy

Use your ‘letter of collection’

Pay monthly

End of scheme/Ownership

What could I save ?

What is a letter of collection?

14 days free insurance

Benefits of Cycle2Work

A fantastic way to boost your mental health

A simple way to save money

Frequently asked questions

Cycle2Work Retailers

Locations

Full List of Cycle2Work Retailers

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