Net Deductions
The UK’s first cycle to work Net Deduction solution with enhanced employee savings.
About Net Deduction
Employees can spread the cost and make savings of up to 20%
Everyone should be able to make savings on a bike and spread the cost. That’s why our scheme enables employees to unlock savings through both a standard Cycle to work Salary Sacrifice and Net Deduction arrangement.
When to offer Net Deduction to your employees
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Cycle2work would take earnings below national minimum wage.
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Cycle2work and other existing benefits (e.g. pension) takes employees’ below national minimum wage.
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Temporary workers – this may vary by employer; however, anyone employed for 3 weeks or less would apply.
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Employees at certain times on ‘zero hours’ contracts.
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Individuals not actually employed by the employer.
Benefits for employees
Exclusive bikes with up to 20% off
Not only can your employees spread the cost over 12 months, but they can also access an exclusive range of bikes with 20% off – handpicked by experts to give every rider a range of options to suit their budget.
What bikes are available?
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Road
Ideal for city commuting
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Mountain
For tackling the trails
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Hybrid
The speed of a road bike with the comfort of a mountain bike
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Electric
To help you take the sweat from pedalling
Even if an employee does not wish to choose one of the bikes on offer, they can still opt in, spread the cost and choose from our entire Halfords range.
How it works
Use Net Deductions in three easy steps
You can administer your scheme and refer employees to Net Deduction through the Employer Cycle2work portal. Your employees will receive their letter of collection (LoC) and their exclusive bike catalogue with the latest bike offers.
Step 1
Employee applies online
Just like the normal application; an employee applies for Cycle2work on Halfords.com.
Step 2
Employer review
Decide whether an employee is eligible for Salary Sacrifice or refer them to Net Deduction at the click of a button.
Step 3
We take care of the rest
We provide your employee with more information, next steps and their exclusive bike catalogue with the latest bike offers.
What other information is available?
Frequently asked questions
Everything you need to know.
A discount code will be emailed to the employee once they have signed their Net Deduction agreement.
Once you have referred your employer to avail of our Net Deduction solution, they will receive an email containing access to the exclusive discounted bike range.
From road bikes, hybrid, mountain and electric bike, we have men’s and women’s bikes to suit everyone’s budget. We keep updating our range of bikes to ensure there is something for everyone.
Our Cycle2Work Employer Portal will provide you with the option via a drop-down menu to ‘refer’ your employee and will then enable you to select Net Deduction as your option.
Please refer to the following link which gives you guidance on which employees are exempt from the government scheme and therefore would be eligible for Net Deduction. https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim21665
As Halfords are providing the savings and there are no further savings being made through NI or tax, the employee will own the bike.