Cycle to Work Scheme

It’s a great way to get on the road to a healthier lifestyle.

Cycle to Work allows you to order a new bike, equipment or both up to the value of £2,500. We pay for the order up front, you agree to hire the bike from Halfords (the scheme provider) and pay us back by spreading the cost over 12 months through salary sacrifice payroll deductions– saving on tax and national insurance contributions.  Or if you do not qualify for the salary sacrifice scheme due to National Minimum Wage restrictions, you can use the Net Deduction scheme and still spread the cost over 12 months.

Cycle to Work is perfect if you:

  • would like to commute to and from work the healthy way
  • care about the environment and reducing your carbon footprint
  • want to save money on the cost of a bike and accessories.

Please note using the Cycle to Work scheme does make you ineligible for Stream (formerly Wagestream). If you are a Stream user your account will be paused if you apply for Cycle 2 Work.

Watch this short video from Halfords to learn more
Apply here with employer code Anchor1C2W6067

All permanent fixed hours colleagues can apply.  If your hourly rate is higher than the National Minimum Wage threshold of £14.70 (effective April 26), you can apply for the salary sacrifice scheme.   If your hourly rate is below this you can apply for the net deduction scheme.

Cycle to Work is only available to colleagues on the Anchor payroll system with a regular fixed income.  Bank colleagues  are not eligible to apply. 

Colleagues must have a minimum of 3-months service before applying.  If the amount you apply for is more than your normal monthly earnings your application will not be accepted.

Please note using the Cycle to Work scheme does make you ineligible for Stream (formerly Wagestream). If you are a Stream user your account will be paused if you apply for Cycle 2 Work.

 

If your hourly rate is lower than the National Minimum Wage threshold, unfortunately we can’t offer you the advantage of tax & NI savings through salary sacrifice due to HMRC scheme rules.  However, you can continue with your application on a net deductions basis.  This means you get the convenience of paying for your bike or cycling equipment over 12 months direct from your pay (after tax).  Just apply in the same way and we’ll take care of it for you.

 

The Cycle to Work limit has now been increased to £2,500 to help give more support to colleagues who wish to reduce their carbon footprint, by offering e-bikes as an option under the Cycle to Work scheme.

If the amount you apply for is more than your normal monthly earnings your application will not be accepted.

 

No.  The Loc will be for the value you applied for and you can only use your LoC once (even if you spend less than the amount you applied for).  Please only apply for the exact amount you need. 

You will have to pay back the full amount you applied for,  regardless of how much you spend.  There are no refunds on the value of a LoC.

You can make an application at anytime but you will need a minimum of 3 months service. 

 

Take a look at the Halfords site for full details of the scheme. 

 

How Do I Apply?

  1. Read the Cycle to Work guidance and information on Halfords site
  2. Check if you’re eligible for the scheme – you need a min of 3 months service and  the amount you apply for should not be more than your normal monthly earnings. 
  3. Check which retailers are in the scheme and choose the bike and/or accessories you want to buy either online or by going into store. 
  4. Add up how much it will all cost.  This is the amount you will need to apply for.  Please note the amount you apply for is the amount you payback, regardless of whether you spend it all or not.
  5. Log on to Halfords to apply and follow the instructions using employer code Anchor1C2W6067
  6. If your application is approved (please allow up to 5 working days), you’ll receive a letter of collection (LOC) which you then use as payment when you place your order.  You can only use your LoC once, even if you spend less than the amount you applied for.  Please only apply for the exact amount you need.  You will have to pay back the full amount you applied for,  regardless of how much you spend.  There are no refunds on the value of a LoC.
  7. We’ll deduct the cost of the LoC from your pay through salary sacrifice each month (unless you have take a ‘net deduction’ loan then it is after tax), which means you swap some of your pre-tax salary for a non-cash benefit to enjoy tax and national insurance savings.   
  8. After a year of ‘hiring’ it, ownership of your equipment will transfer to Halfords. Halfords will then contact you to discuss your options.