Cycle to Work FAQ
The information produced by your employer about the scheme will detail the dates between which you can apply – the ‘window’. Different employers run different application windows. For some employers the window is a one off so you wouldn’t be able to join later, others have a window every year or several windows a year. Your HR team is best placed to advise you.
How do I know what value to apply for?
For the vast majority of schemes the upper limit is £1000 although some employers do impose a lower figure. The upper limit is displayed during the application process and will also be included in information produced by your employer about your scheme. As we are an independent shop the scheme will always source the bike at the RRP toensure consistency of price and availability.I'm paid close to the National Minimum Wage, can I still take part?
Yes, although your wage may limit the value of bike and safety accessories available to you as your salary cannot drop below the legal minimum. However, you can still take advantage of a loan bike from your employer. Apply for the scheme in the normal way and your employer.Can I add my own money to the Scheme value to get a more expensive bike?
No. You cannot 'top up' or add to your LoC/Voucher using your own funds because the employee and employer would jointly own the bike causing issues at the end of the hire period.What safety equipment is available through the Scheme?
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.
More detail on HMRC guidance is available hereCan I choose more than one bike?
The legislation doesn't stop you selecting two cycles so long as both are used for commuting to work. For example, you may have a summer route and a winter route to work, both needing different things from a bike. However, some employers only allow employees to select one bike, so if this is essential for you it’s worth checking before you apply.Why doesn't my hire agreement show my actual savings?
The gross payment is the value before Tax and National Insurance has been taken and is stated on your hire agreement and each of your payslips. The net payment is the true cost after tax and national insurance savings and varies between person to person. Your hire agreement will state a gross value as this not change based on personal tax circumstances.Will joining Cycle to work Scheme affect my pension or other benefits?
Potentially. Salary sacrifice reduces gross salary so this may affect your pension arrangements and/or other benefits. Halfords are not tax, pension or legal advisors, so if you’d like more detail please check with your employer before signing up.When can I collect my bike?
As soon as you receive your Letter of Collection/Voucher you can go and collect your bike. If it's in stock simply surrender your Letter of Collection/ Voucher and present a form of ID. If it isn't in stock ask for your chosen bike to be ordered in and present your LoC/Voucher and ID on collection.Once I’ve picked up my bike do I own it?
No, the cycle to work legislation states that the employer must own the equipment and that there is no automatic right for the employee to own the equipment at the end of the agreement. Your employer is technically loaning the equipment to you for a fixed-period of time.What if my bike is stolen or accidentally damaged?
We recommend you get bike insurance, or check if your bike is covered under your home contents insurance policy. If your home contents insurer covers the bike, you must inform them that your employer (or their nominated agent) owns the bike. Your salary sacrifice won't stop or be suspended due to loss or damage to the bike.What if I don't use the bike for commuting after I've joined the scheme?
You'll no longer qualify for the tax relief for this benefit. If so, your payroll department will arrange for the remaining salary reductions to be taken from your pay.What if I leave early or I'm made redundant?
If you leave before the end of the hire term the remaining balance will be taken from your net payand you can use the bike and accessories until the hire period ends. You may then be given the opportunity to buy the items for their fair market value. However, this transfer of ownership is the subject of a separate agreement and isn't governed or influenced by the Hire Agreement you sign for this scheme.Can I use my LoC/Voucher to get a bike for a family member, partner or friend?
No. The bike must be used by you, mainly for commuting to work. That includes journeys made between the home and workplace, or part journeys (e.g. to the station), or journeys between one workplace and another.What happens at the end of the hire period?
There's no automatic entitlement for you to take ownership of the bike and accessories at the end of the hire period. However, your employer may choose to let you purchase the equipment.Can I take part in more than one scheme?
Technically you can apply each time your employer runs a scheme. However, your employer may decide though to prevent you from joining another scheme until your first Hire Period has ended.