How does Cycle2Work work?

The scheme is designed to encourage cycling, inline with the Department for Transport's own Cycle to Work scheme. A typical customer is therefore a commuter, and not necessarily a cyclist.

As a participating employee you will agree to sacrifice an agreed sum deducted from your gross salary. In return, we will provide you with the use of a bicycle and cycling safety equipment for commuting, work related activities, and leisure. Not only will you be able to get out and about on two wheels, through the scheme you will be able to save on income tax and National Insurance that would otherwise have been payable by you. If that's not enough, you will also be able to spread the cost of cycling to work over a period of either 12 or 18 months.

Where can I get my bike and accessories?

Halfords has the largest selection of cycles and accessories in the UK, and sell more bikes than any other retailer. Choose from our huge range of top brand products available at Halfords' 400 stores or on-line at http://www.halfords.com to decide the value of bike you require. Halfords will then send you a Letter of Collection (LoC), which you can use within a set time limit in exchange for your bike and safety equipment. Any difference between LoC value and bike price will not be refunded. Still can't find what you are looking for? Simply call Halfords' dedicated Cycle2Work team on 08700 660 511 or e-mail cycle2.work@halfords.co.uk and we will do our best to source your dream bike for you.

Who is eligible?

Cycle2Work is governed by the Department for Transport. In order to receive the tax benefits resulting from the salary sacrifice arrangement you will need to:

• Be aged 18 years or over.
• Be a UK taxpayer, who can benefit from the tax efficiencies of the scheme.

In addition to the requirements above, your employer may have established further eligibility criteria specific to your organisation. Please see enclosed guidance notes for more details.

Can I use my LoC to get a bicycle for a family member, partner, friend etc?

No. The bicycle must be used by you, mainly for commuting to work, i.e. for journeys made between the home and workplace, or part journeys (for example, to the station), or for journeys between one workplace and another.

Can I apply for more than one bicycle?

Yes, providing that you use both for commuting to work.

When can I collect my bike?

Your bike will be fitted for you in store and built for you so that it is ready to ride. If it is in stock simply surrender your LoC and present a form of ID and you can take the bicycle home with you. If not, you should request that your chosen bike is ordered in to the store.

What if I can't get to a store, will I miss out?

No, you can still participate. If there is not a Halfords store near your home or work, or you are unable to get into store please phone our Cycle2Work team on 08700 660 511 to arrange home delivery for an additional cost of £14 (inc VAT).

What happens if I decide I no longer wish to use the bike for commuting after I have joined the scheme?

You will no longer qualify for the tax relief afforded to this benefit. In such circumstances you will need to advise payroll, who will arrange for the remaining salary reductions to be taken from your pay after tax and National Insurance have been deducted. You cannot return the cycle and have your salary re-adjusted.

What value of bike can I choose?

Your employer has selected a maximum value of £1,000. When deciding on a bike value, consider carefully the amount of your salary you can afford to sacrifice each month and the type of bike that will best suit your needs. Our staff in store will be able to advise you.

Once you have chosen your value, completed the Hire Agreement and received your LoC you will not be able to increase or decrease your limit. If your bike costs less than the value you selected, your salary will still be reduced as set out in your hire agreement. We therefore recommend that you fully utilise your LoC by spending the difference on accessories.

Note : Due to a recent change in the legislation governing the Tax Free Bicycles Schemes, no additional payments can be made in instances were the bike package exceeds the value of the LOC.

If I decide not to participate in the scheme now, can I join later?

Depending on the success of this year's scheme, your employer may choose to repeat it in the future. However, your employer cannot guarantee that there will be another opportunity to participate.

What happens when I reach the end of my hire term?

Although you will have benefited from full use of your bike for the term of the hire term, your employer owns the bike for the duration. At the end of the hire term, your employer may sell the bike to you for its fair market value, details of which can be found on the attached guidance notes.

If I leave the scheme early or end my employment before I have completed my hire term, will I have to give my bike back?

If you leave the scheme or end your employment for any reason before you have completed your hire term, you will be liable to pay the amount outstanding from your final net salary. If you take paid leave during the period of the hire term your payments will continue to be deducted and you will be able to carry on using your bike. If you take unpaid leave or leave where your pay is reduced to a lower amount than that deducted, your payments will be suspended until you return to work at which time payments will recommence for the remainder of the term originally set out.

I have never owned a bike before and know nothing about cycle maintenance. What happens if my bike is damaged or fails to operate?

To get the best performance from your new equipment you should care for your bike as you would for any other means of transport and be sure to check parts for wear and tear, and get any damage repaired quickly. If you are unsure of how to look after your bike yourself, Halfords has developed its BikeCare cycle maintenance plan. Choose from either a one year or three year plan for complete peace of mind, and enjoy no hassle cycling thanks to a comprehensive 25 point annual service, maintenance and repairs as required throughout the year by in store cycle mechanics trained to Bicycle Association standards, and free labour on all parts purchased and required. BikeCare does not currently form part of the Cycle2Work scheme and as such tax and national insurance savings do not apply. Please see attached guidance notes for more details.