What's it all about?
Top ten questions
There’s more focus than ever on the benefits of pedal power. Better physical and mental health, savings on commuting costs, getting out to explore local areas more all while being kind to the environment. Find out below if Cycle2work is for you by checking out the live road show and popular questions about Cycle2work. Hundreds of colleagues have already participated in Cycle2work making over £200,000 of savings.
Popular questions
1- How does the Cycle2work scheme work?
You select a bike and any cycle accessories you want, apply to get it through Cycle2work and pay for it through your salary.
Click here to open the video in Youtube.
2-What’s the benefits of doing that?
You save from 33% to 42% off the value of the new bike through tax and national insurance savings. Plus the cost is spread over 12 or 18 months (whatever your preference is). Its the most cost efficient way to get new cycling equipment and also avoids large one-off costs.
3-How much can I spend with Cycle2work?
From £100 to £3,500 – providing the deductions from your payslip don’t take you below the national living wage. This is checked by our payroll team as part of the application process.
4-Do I need to cycle to work everyday?
In short, no! You can use your bike for cycling to work or rides around your local park or even to the beach on holiday. The scheme is in place to encourage people to use bicycles, especially to and from work. You do not need to log how you are using your bike.
5-Can I apply then change my mind and cancel?
Yes – but for only 14 days as per the Cycle2work contract. From when you receive your letter of collection to collect a bike you have 14 days in which you can cancel the contract.
Its important to note that the total value of your Cycle2work letter of collection must be used all at the one time. The amount you have applied for will be the amount that you pay for even if you spend less. In addition the bike cost must be covered entirely but the letter of collection value, its not possible to add you own funds towards the bike cost.
6-Is Cycle2work just for a bike?
It covers a bike and also a wide range of cycle accessories. From safety gear including lights, locks, helmet and mudguards. Maintenance gear like a pump, puncture repair kit, bike lube and cleaning equipment.
Bags, panniers and pannier racks if you want to carry some work gear on your commute or some food on a day trip. Child safety seats and trailers if you are thinking of some cycle adventures with a toddler. If its an E-bike your getting you can include battery packs and chargers. Accessories commonly asked for but not available through the scheme include gps handle bar computers, actions cameras and turbo trainers.
7-Can I just get accessories?
Yes you can, this is allows you to upgrade any cycle accessories/bike parts needing replaced and no purchase of a bike is needed. Most bike parts are included with the main exceptions being a frame and fork.
8-Can I get two bikes?
Yes! If you would like to get two bikes at the same time with Cycle2work you certainly can – as long as the total doesn’t exceed our limit of £3,500 and the bikes are a similar frame size.
9-Can I take part in Cycle2work more than once?
Yes! Should you need another new bike you can reapply along as you have completed your salary sacrifice deductions for bike you already have through the scheme.
10-What happens if my bike gets stolen?
This one’s down to you. Looking after your bike is your responsibility.
Plus are you wondering…
… if cycling really is so beneficial to my health? Read more here
How does the discount work?
The savings outlined
Cycle2work is a salary sacrifice scheme. The discount comes from paying off the bike cost straight from your salary. This means you save on tax and national insurance with the bike cost going through as a non cash benefit.
So what’s the saving?
As you don’t pay income tax or national insurance on the scheme payments you will save between 32% and 42% (depending on your tax band) on the overall cost of your new bike and accessories.
Tell more more about salary sacrifice
The salary sacrifice happens when you give up the right to receive part of your salary. Its is where you have agreed to accept a lower amount of salary, in return for North Lanarkshire Council providing you with the non-cash benefit of the bicycle and safety equipment.
For a benefit such as a cycle2work bike, where there is a specific tax exemption, the employee can receive a tax and national insurance contribution free benefit instead of salary on which tax and class 1 nation insurance contributions would have been fully payable.
When do the salary sacrifice deductions take place?
The deductions happen in installments over 12 or 18 months (whatever your preference is). The deductions are automatically taken from your salary once you are issued your Cycle2work voucher (letter of collection). The deductions amount is consistent to equally spread the total deduction amount over the 12 or 18 months period you selected.. The exact deduction amount is confirmed with you as part of the application process.
How much does it cost and how much do I save?
Costs start from as little as £4.70 per 4 weekly pay over a 1 year period. The Halfords Cycle 2 Work Calculator will show what your savings could be and what your salary deductions could be. To use the calculator just enter what you’re thinking of spending on a bike and what your pay type is (2 weekly, 4 weekly etc).
What happens after my last deduction?
After the 12 or 18 month payment period you set, the deductions automatically stop. There are no additional costs. Part of the scheme is a “transfer of ownership”. This is needed for the Cycle2work scheme to be compliant with HMRC rules. It has no cost for you, you simply indicate you will extend the hire agreement. No further actions needed.
What happens if I leave NLC before my 12 or 18 months of deductions is complete?
You will have to pay ALL the outstanding payments remaining on your Agreement from your final net salary. The deduction is taken from net rather than gross salary, as you will no longer be entitled to benefit from Income Tax and NI savings.
Please be aware you may be left with a zero net salary after deductions are taken. If there is not enough net salary to recover from your final salary an invoice will then need to be raised. You will be required to pay this invoice within 14 days of your departure from North Lanarkshire Council.
You will be contacted by Halfords in due course regarding end of hire options as usual. As you left the scheme early you will be due to pay a fair market value to keep the bike – this is determined by HMRC and is 18 to 25% of the original bike value.
If you think your employment is likely to end before the 12 month period of the hire, you should consider very carefully whether you wish to participate in the scheme.
Can taking part in Cycle2work affect my participation in other salary sacrifice employee benefits?
Yes. You can only take part in certain employee benefits if your salary remains above the national living wage level. Benefits like buy and bank leave, additional voluntary contributions (AVC) to your pension and electric car scheme (coming soon). Please bear this in mind when taking out a 12 or 18 month long Cycle2work agreement.
Need some help?
Please contact cycle2.work@halfords.co.uk or helpdesk-UK-VBR@edenred.com
Where can I get a bike from?
Participating retailers to choose from – spend from £100 to £3,500
Click on this link to access all the participating retailers in the Halfords Cycle2work scheme.
This ranges from Halfords stores, Tredz online and hundreds of independent cycle shops.
The selection is massive but please note Evans Cycles and Decathalon are not part of the Halfords Cycle2work scheme.
How long does it take to get my bike?
Timescales outlined and how to avoid delays
Two weeks from when you apply provided your bike is in stock 🙂
Things that can hold up you getting out on your new bike
- on the application form selecting the wrong pay frequency like monthly pay instead of four weekly
- on the application form entering personal details that are different from your details on mySelf, check those personal details by logging into mySelf and making sure your address etc is all up to date
- you have applied for an amount that covers the bike you want but ….
- …….you didn’t check the availabilty of the bike and its sold out and so you need more or less for a different bike (this requires you to cancel the application and reapply) or
- …….you now want a lock, lights and helmet etc also so you need to alter the amount applied for (this requires you to cancel the application and reapply) or
- …….you change your mind about the bike you want and so you need more or less for a different bike (this requires you to cancel the application and reapply) or
- ……. deciding you want to cancel the original application and so apply for a different amount before you actually cancel the original the application
Can I apply then change my mind and cancel?
Yes – but for only 14 days as per the Cycle2work contract. From when you receive your letter of collection to collect a bike you have 14 days in which you can cancel the contract.
E-bike info
Find out more on e-bikes
Should I be thinking off an e-bike?
Alternative e-bike support
Access an interest free loan repayable over a four year period
https://energysavingtrust.org.uk/grants-and-loans/ebike-loan/
Routes and rides ideas
Local peddling friendly suggestions and maps
Route planning app
Best route planning apps guide by Sustrans
sustrans.org.uk/our-blog/get-active/
North Lanarkshire routes
Routes around Strathclyde park
On the map below you’ll find routes around Strathclyde park or check out the app store and search for walking cycling Lanarkshire.
Cycle tips
Get some cycling tips on commuting and on securing your bike
Commute on your bike
British cycling tips
britishcycling.org.uk/commuting
Cycling on cold days
Tips on staying warm on the bike
sustrans.org.uk/our-blog/get-active/
Bike security
Tips on securing your bike