This is a salary sacrifice scheme which provides an Income tax and National Insurance efficient way to pay towards the hire of a bicycle (and associated safety equipment) for 12 months.
How Cycle Plus works
You sacrifice (give up) part of your annual salary to cover the hire of a bicycle (and associated safety equipment) for 12 months.
For the initial 12 month hire period the bicycle will be hired from the scheme provider, Halfords. The monthly payments towards the hire of the bicycle will be taken directly from your monthly salary and will cover the cost of the certificate value.
After the 12 month period, you have three options:
- Return the bicycle to the scheme provider, Halfords, who are based in Worcestershire;
- Continue to use the bicycle and hire from Halfords by signing an “Extended Use Agreement”. There are no further monthly deductions, or other payments.
- Take ownership of the bike paying Halfords either 18% or 25%* of the certificate value.
*The lower figure relates to a certificate value of less than £500 and the higher figure relates to a figure of £500 and above.
Please follow this link for a quick and simple guide to Cycle2Work from Halfords.
You can participate in this benefit, provided that you do not earn less than the Pay Protection Limit (see Benefits Plus: frequently asked questions), or if your earnings would fall below the National Minimum Wage.
Please contact email@example.com for your options should scheme participation result in your earnings falling below National Minimum Wage.
If you do earn less than the Payment Protection Limit, Halfords have a solution which will enable you to enter into a hire agreement directly with Halfords to obtain a bike at entry level range and make a one-off payment no greater than £20.
If you participate in any other parts of Benefits Plus then these will also be taken into account when deciding if you can participate in Cycle Plus (see Benefits Plus: frequently asked questions for more details).
Those who have a standard parking permit through the Car Parking Scheme are not eligible to participate in Cycle Plus. Occasional use parking permit holders may still be eligible to participate in Cycle Plus should they meet all other eligibility criteria.
Cycle Plus can be selected by employees who have at least 12 months remaining on their employment contract.
If you leave employment before the end of the initial 12 month hire agreement, the outstanding balance would be repayable immediately and, if possible, it would be deducted from your last net salary payment, meaning you would not have benefited from Income tax and National Insurance savings on any outstanding balance.
If you leave employment during the “Extended Use” period, as your contract is directly with Halfords the contract and bicycle will transfer with you.
Please note that although you do not have legal ownership of the equipment during the hire agreement, it will be your responsibility to adequately insure and maintain the bicycle.
For quick answers to common quesitons please follow this link Cycle to Work Scheme - Questions answered.
How do I apply
- Find your local partner shop using our search facility at www.cycle2work.info/bg_C2WStoreMap
- Partner shops are not only Halfords shops, but also a number of local and UK bicycle retailers as well as online retailer www.tredz.co.uk
- Visit the shop and choose your bike and approved safety equipment, to identify the value of certificate (‘Letter of Collection’ or ‘LoC’) you want to apply for. If you can't find what you are looking for, the Halfords helpdesk will support you to source specific bicycles or bicycles with similar specification in similar price range - phone 0345 504 6444 or email firstname.lastname@example.org
- Log into MyLifestyle Platorm www.edenred.uk.com using your work email address and password, for the site. Cycle to work can be found in the mybenefits tab.
- The University will check your eligibility, ask you to sign a Cycle Plus condition sheet and approve (or, if not eligible, decline) your request.
- After approval by the University, Halfords will send you the ‘Letter of Collection’, by email.
- You redeem the letter of collection in the bike shop upon production of photographic ID
Changing your terms and conditions of employment
Please note that by participating in Cycle Plus you are agreeing to reduce your gross contractual salary by the value of the cycle equipment hired and you are agreeing to a change to your terms and conditions of employment with the University.