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 our provider and pay us back by spreading the cost over 12 months through salary sacrifice payroll deductions– saving on tax and national insurance contributions.

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.

If your hourly rate, taking into account any other deductions, is higher than the National Minimum Wage, you can apply for the 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 your hourly rate, taking into account any other deductions, is lower than the National Minimum Wage, unfortunately we can offer you the advantage of tax 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.

 

You can make an application at anytime. 

 

Take a look at the Cycle to Work guidance and information on the My Shopping Discounts site. 

 

How Do I Apply?

  1. Read the Cycle to Work guidance and information on the My Shopping Discounts website
  2. Check if you’re eligible for the scheme – you need 3 months service and your contracted basic earnings will need to be above the National Minimum Wage (after all monthly deductions including Cycle to Work). If your contracted basic earnings are below the National Minimum Wage, after deductions, you will be able to continue on a net deductions basis if you choose to
  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 their store and add up how much it will cost.
  4. Log on to My Shopping Discounts and choose the Cycle to Work tab
  5. Use the online calculator to check how much you could save
  6. Enter your details
  7. Confirm and submit your application
  8. If you qualify, you’ll receive a letter of collection (LOC) which you then use as payment when you place your order
  9. We’ll deduct the cost from your pay through salary sacrifice each month, which means you swap some of your pre-tax salary for a non-cash benefit to enjoy tax and national insurance savings.  If your contracted basic earnings are below the National Minimum Wage, after deductions, you will be able to continue on a net deductions basis if you choose to (i.e. you are not entering into a salary sacrifice arrangement on this basis)
  10. After a year of ‘hiring’ it, ownership of your equipment will transfer to Halfords. Halfords will then contact you to discuss your options.