Cycle2work

WHAT IS THE CYCLE2WORK CAMPAIGN?

The Cycle2Work campaign is part of the Government's 'Green Transport Plan' whereby employers can loan bicycles and cyclists' safety equipment to employees as a tax-free benefit.

THE PROCESS OF APPLICATION

First, your employer needs to register on one of the following Cycle2Work schemes:

Halfords Cycle2Work Scheme | NHS Cycle to Work | Bike2Work Scheme 

Once they have registered they will receive a unique code or PIN. It is then up to the employee to sign-up to the same scheme, find a bike, get an invoice for that bike from the seller and submit the invoice to the respective scheme. You will need to input the PIN your employer received when they registered as a part of your bike application.

Once this has been approved by your employer you will receive a voucher or certificate which you'll need to email over to us so that we can send you your brand new bike!

Please be aware that if you are using the Halfords Cycle2Work scheme then you will need to redeem this & purchase our bikes through Halfords.

HOW DOES IT WORK?

Essentially what happens is that your employer buys a bike (and safety equipment) for their employee who 'hires' it from them. The standard limit for purchases is £1,000 but bike shops are usually more than happy to sell you a more expensive bike provided you make up the difference with them yourself.

You then pay that back (minus the VAT, that most employers can claim back) over a standard term of 12 months, purchasing the bike from your employer at the end of this period for the HMRC approved Fair Market Value (FMV).

 

Age of Bike

FMV: Bikes under £500

FMV: Bikes over £500

1 year

18%

25%

18 months

16%

21%

2 years

13%

17%

3 years

8%

12%

4 years

3%

7%

Payments are made via a process known as salary sacrifice. As the name suggests, this involves the employee giving up a part of their income in exchange for a non-cash benefit, which in this case would be the bicycle. The fact that these payments are taken from your gross salary means that the employee is paying less in income tax and national insurance and therefore saving money.

Notwithstanding savings of up to 42% off the cost of a new bike and the fact that you're cost of travel will dramatically decrease, you'll get to work faster and feel a lot happier, studies have shown. Yes, OK, you knew that already but what you may not know is that scientific studies have shown that regular time in the saddle will help you sleep more deeply, increase brain power, look younger and even improve your sex life!