- Access to a network of Halfords, Tredz and 100’s of Independent bike shops
- Bikes starting from only £140+
- Options for employees on National Minimum Wage
- A scheme with big brands – Carrera, Boardman, Specialised, Giant, Scott and much more
- 13.8% NIC Business savings
- Access Halfords and Tredz sale and promotional prices
- No final transfer fees
- Enhanced offers to employees
- Lifetime guarantee on Halfords brand bikes
- Effortless admin
- Fully managed self-serve portal
- Instant certificate dispatch
- Protection against the risk of early leavers
- Experts on hand to support you every step of the way
We get your employees onto their bikes quicker and sooner than any other provider.
A scheme with the widest choice to suit all budgets and solutions for employees not eligible for salary sacrifice to ensure scheme compliance.
Halfords covers the deficit from early leavers meaning your business won’t be out of pocket.Learn more
A self serve employer portal to manage applications, gain data insights and marketing tools to unlock the full potential of your scheme.
All costs are recouped by the employer via the salary sacrifice deductions.
Enhances your corporate benefits package to attract and retain employees.
Improves business productivity by improving employee wellbeing.
Contributes to Business ESG plans by reducing your carbon footprint.
Saves you 13.8% in employer National Insurance contributions.
Create an account
Complete the employer application form and review the Supplier Agreement.
Set up your employer portal
Set admin rights parameters of your scheme, access marketing resources and book events.
You’re ready to go
Promote your Cycle2Work scheme and start approving employee applications.
Cycle to work is a government initiative that encourages more people to commute by bike, enabling people to make healthier choices and reduce the UK’s carbon footprint.
The scheme is run via salary sacrifice, allowing employees to make savings of up to 47% on the cost of a new bike and accessories. Employers will also make savings of 13.8% through National Insurance contributions.
All UK based organisations can offer the Cycle to Work scheme if they are PAYE.
No, you do not need HMRC to approve your cycle to work scheme. For HMRC guidance on this, please visit Salary sacrifice for employers – GOV.UK
Our aim is to minimise the administration for our clients and maximise savings for the employee.
One of the ways we do this is by managing the full end of hire process. Halfords will take full responsibility for this process directly with The Employer’s employees.
At the end of hire period Halfords will offer your employees 3 compliant options:
- Zero cost Managed Extended Hire (Most popular option with employers). The employee will have the option to enter a zero-cost extended hire arrangement directly with Halfords until the value has deprecated to a negligible point aligned with the HMRC cycle to work matrix table, when Halfords will then transfer ownership of the bike. This solution eliminates admin for the employer, maximises the savings through the scheme for the employee, and permits them to join the scheme again the following year. Halfords do not charge for Managed Extended Hire which can save your employees a further 3%, 7% or 10% compared to other scheme providers.
- Fair market value payment. The employee can take immediate ownership of the bike at the end of initial hire term by making a payment direct to Halfords for the fair market value of the bike. This value is defined by the HMRC matrix table which at the end of the initial hire term is 25% (Bike initial cost greater than £500) or 18% (bike initial cost less than £500) of the bikes original cost.
- Return the bike. Employees also have the option to return the bike at the end of the initial hire term to their local Halfords store where it will be safety checked and donated to ReCycle where bikes are refurbished and sent to Africa where they are essential means of transport across rural countries.
We will reach out to employee using the details we have on file to inform them that if they do not select an option from the list above within 30 working days, they will be automatically enrolled onto the zero-cost extended hire arrangement.
Employers can set their own scheme limit, there is no longer a restriction of £1000, meaning employees can choose from a wider selection of bikes and safety accessories including a much wider range of e-bikes which was a driver in the DFT updating the guidance in 2019.
As Halfords ltd have the required FCA permissions in place, we are extending this offering to our clients enabling them to set what limit they see right for their workforce.
Halfords Limited is a founding member of the Cycle to Work Alliance (a policy-focused coalition of the five largest providers of the Cycle to Work scheme). This ensures we are leading regarding any scheme policy updates and changes.
Employers are expected to claim from HMRC the VAT incurred on purchasing the letter of collection, then pay HMRC the VAT included in the payments received via the employees’ the salary sacrifice. Halfords cannot provide Tax advice and employers should seek confirmation from their own tax advisors.
The cycle to work scheme is governed by HMRC and the Department for Transport. Principal rules of compliance include.
- The scheme should be open and available to all colleagues
- Transfer of ownership of any products cannot be assumed
- Any salary sacrifice deductions must not drop salaries below the National Minimum Wage (please see our Cycle2Work page for more details on our net deduction scheme ensuring all employees can avail of a bike).
- The salary sacrifice arrangement will be for at least 12 months.
For more information visit Cycle to work scheme implementation guidance for employers – GOV.UK.
Halfords remains the owner of the bike during the initial hire term. At the end of the initial hire term Halfords shall provide transfer of ownership options to the employee.
The only cost is the cost of the total value of Letters of Collection which is recouped by the employer from the employees’ salary sacrifice deductions.
Employers who register to Cycle2Work through the website, will have scheme protection as standard. Scheme Protection negates the risk of early leavers from your scheme. Halfords covers the deficit from early leavers meaning your business won’t be out of pocket.
This service protects employers against the risk of early leavers, meaning if an employee were to leave the organisation and insufficient funds were available from their final pay then Halfords would make up the deficit. This service has a modest admin fee which is easily covered by the employer NIC savings.
Yes, we can work with your chosen third-party finance provider. Financing your scheme can be a great way to spread the cost of running your scheme in-line with your salary sacrifice deductions, to avoid the upfront initial cost of the letters of collection.
Following client feedback, we have developed and launched our unique scheme Protection solution. Scheme Protection negates the risk of early leavers from your scheme. Halfords covers the deficit from early leavers meaning your business won’t be out of pocket.
This service protects employers against the risk of early leavers, meaning if an employee were to leave the organisation and insufficient funds were available from their final pay then Halfords would make up the deficit. This service has a modest admin fee which is easily covered by the employer NIC savings. For more information visit our Scheme Protection page.