What if I already own a bike - why would I want a new one?
The current bike you own can of course be used to cycle to work. However, you may find that as you start to cycle more regularly that you need a more suitable bike for everyday commuting, that would allow you to ride more efficiently. You may also sometimes take different routes when travelling to work, i.e. a summer route and a winter route, which might benefit from a different type of bike for each journey.
What is the maximum value of equipment I can obtain through the cycle-to-work scheme?
The Office of Fair Trading has issued a Group Consumer Credit License allowing any employer to run a cycle-to-work scheme. The license allows you to hire equipment up to the value of £1,000 inclusive of VAT. An employer can then choose to offer whatever range of values within the £1000 limit that they deem appropriate.
This £1000 maximum limit has now been removed in instances where a third party with pre-existing FCA authorisation (such as Cycle2Work) hires the goods directly to the employee, even though the cost is still recovered by the employer through salary sacrifice deductions. This £1,000 maximum will also not apply if the employer is authorised by the FCA for another separately regulated activity.
The average limit set by Employers for the last 12 months was £1822 and the average transaction was £789 for a 12-month salary sacrifice.
To see the values available in your scheme, please click "apply now" and review the Min and Max options within the "letter of collection value" section. For more information about your scheme limit, please review your internal communications.
When can I collect my bike?
If it is in stock at your chosen Halfords, Tredz or independent store, simply hand in your LoC and present a form of ID. If it is not in stock, you should request that your chosen bike is ordered into that store. Your bike will then be built and inspected by a qualified bike mechanic, ready for you to ride away.
Will salary sacrifice schemes affect my entitlement to benefits?
Possibly, although in most cases the effect is likely to be minor. However, you need to be aware of the implications of paying less income tax and NI contributions and accepting a reduced salary. It is recommended that you seek professional advice if you have any concerns or need more information.
How can I compare my commute by cycling, driving and public transport?
By using
The Cyculator, you can plug in points A and B to get your journey times.
When can I join the scheme?
As soon as your employer opens an election window.
How long do I have to apply for the scheme?
Your employer will decide how long the election window is open. You can either ask them or e-mail us on
info@flexiblebenefits.coopWhat equipment is available?
Cycles and cyclists' safety equipment are included. The tax exemption defines a "cycle" as "a bicycle, a tricycle or a cycle having four or more wheels, not being, in any case, a motor vehicle" (192(1) of the Road Traffic Act 1988 (c52.)).
An electrically assisted pedal cycle can be included under the scheme. Cyclists' safety equipment is not defined in the legislation and a common sense approach should be taken when selecting it. This could include:
- Cycle helmets which conform to European standard EN 1078
- Bells
- Bulb horns
- Lights including dynamo packs
- Mirrors and mudguards to ensure the rider's visibility is not impaired
- Cycle clips
- Dress guards
- Panniers
- Luggage carriers and straps to ensure luggage is carried safely
- Locks and chains to ensure the cycle can be safely secured
- Pumps
- Puncture repair kits, tool kits and tyre sealant to allow for minor repairs
- Reflective clothing
- White front reflectors
- Spoke reflectors
- Child seats
Current guidance from HMRC states that bike Satnavs and cycle computers are not allowed within the Cycle to Work scheme.
What equipment is not available?
- Bike frames
- Forks
- Mounted cameras
- GPS
- Turbo trainers
- Cycle carriers
- E-Scooters
Can I take part in more than one scheme?
You can technically apply again each time your employer runs a scheme, however, your employer may decide to prevent you from joining another scheme until your first Hire Term has lapsed.
Can I add my own money to the value of an LoC to get a more expensive bike?
No, as to be eligible for the tax break, the bike must remain the sole property of the employer for the duration of the hire period. For that reason, the selected letter of the collection must cover the full cost of your selection (bike and accessories) and you cannot add your own funds of any description to the transaction. Though you can certainly add your own cycle GPS to your bike, which is not covered by the scheme.
What happens at the end of the loan period?
There is no automatic entitlement for you to take ownership of the cycles and safety accessories at the end of the loan period. However, your employer may choose to give you the option to purchase the equipment.
Who owns the equipment?
The legislation that governs a cycle-to-work scheme states that the Employer must own the equipment, so it is not an employer contribution type scheme. There can be no automatic right for the Employee to own the equipment at the end of the Agreement. If they do, they cannot claim the tax exemption.
Therefore a cycle-to-work scheme operates as a loan: the Employer is technically loaning the equipment to the Employee for a fixed period. Although Employees do not own the equipment, they remain custodians of the equipment and are free to use it as they wish, providing it is mainly to ride to work.
Can I select more than one bike?
Your scheme criteria will determine whether this is allowed. However, the legislation does not prohibit the selection of two cycles providing that both are used for commuting to work. For example, you may have a summer route and a winter route to work, both requiring different things from a bike.
What is the maximum value of equipment I can obtain through the cycle-to-work scheme?
The Office of Fair Trading has issued a Group Consumer Credit License allowing any employer to run a cycle-to-work scheme. The license allows you to hire equipment up to the value of £1,000 inclusive of VAT. An employer can then choose to offer whatever range of values within the £1000 limit that they deem appropriate.
Where can I get my bike and cycling safety equipment?
Halfords has the largest selection of cycles and cycling safety equipment in the UK. Though you can also use Tredz and there are over 1000 independent stores which may also use.
Please use the store locator on the cycle2work website to find your nearest store and the location of participating independent stores.
What if my bike gets stolen/accidentally damaged?
It is recommended you obtain separate insurance, or check 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. Payments will not stop or be suspended due to loss or damage to the bike.
I have a lot of other salary sacrifice benefits, is this OK?
If the total value of all your salary sacrifice arrangements means that your wage is taken below that of the National Minimum Wage, you may not be able to sacrifice any more of your wage.
Can a Letter of Collection be used to get a bike for a family member, partner or friend?
No, the cycle must be used by you, mainly for commuting to work. For example, journeys made between the home and workplace, part journeys (e.g. to the station), or journeys between one workplace and another.
What if I can't get to a store, will I miss out?
No, you can still participate. If there isn't a store near your home or work, or you are unable to visit a store, the store can arrange to get the bike to you. Though 97% of the UK live within 30 minutes of a Halfords store.
What happens if I do not 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, your payroll department will arrange for the remaining salary reductions to be taken from your net pay i.e. after tax and National Insurance have been deducted. You cannot return the bike (and any safety equipment) and have your salary re-adjusted.
