Halfords
Cycle2Work
Halfords Cycle2Work Letter Of Collection
Halfords Cycle2Work vouchers, also known as your Letter of Collection (LOC), can be redeemed with Tredz through our online checkout, speeding up your ordering process so you receive your new bike, clothing and accessories even quicker. Cycling to work is a great way to get fitter and help the environment. With the Cycle to Work scheme from Halfords Cycle2Work you can save money on a new bike too.
How does it work?
Get your voucher
- Start your quote online with Tredz, just visit our Cycle To Work quote page
- Choose your bike, cycle clothing and accessories or select the value of your Halfords Cycle2Work Voucher.
- Check all the details on the quote we provided and ensure everything looks right.
- Take your quote to your HR department and they will issue your Cycle2Work voucher.
Use your Letter of Collection
- Have your Letter of Collection to hand which contains your LOC number.
- Add the eligible items to your basket that you wish to purchase through the scheme.
- In your basket, enter your LOC number and surname click ‘apply’. You’ll see the value of your certificate removed from your order total.
- Continue through the checkout process as normal, choosing a delivery address that suits you.
- Complete your purchase and we will arrange delivery.
The process
Frequently asked questions
Before you order
Any bike that you can use for commuting is eligible to buy through Cycle to Work. You can choose a lightweight road bike, sporty hybrid, rugged mountain bike, compact folding bike or even an ebike. Kid’s bikes are not eligible.
You can also use your voucher to get any safety equipment you need for commuting. This might include:
- Helmets
- Bells
- Lights
- Luggage
- Locks
- Child safety seats
- Pumps and repair kits
- Reflective clothing
We are unable to reserve a bike until we have received your certificate. As soon as we have your certificate, we can arrange delivery.
While you order
With Halfords Cycle2Work the amount you spend is up to your employer. Halfords Cycle2Work don’t impose a limit themselves but your employer might have their own limit. This might be £1,000 or a higher figure. Contact your HR department to find out how much you can spend.
Yes, you can use your Cycle to Work voucher on any discounted or clearance bikes and eligible accessories.
Unfortunately, price match is not eligible on Cycle to Work orders.
You can buy multiple bikes as long as they are the same size, all are used for commuting to work and the total basket does not exceed the value of your voucher.
Your LOC number can be found on your Halfords Cycle2Work Letter of Collection, which will be given to you by your HR department.
After you order
Everybody who earns their salary via PAYE (Pay As You Earn) can participate in the Cycle to Work scheme.
Please note: You will not be eligible to use the scheme if your salary sacrifice drops your gross pay below that of minimum wage.
You can sign yourself up to a Cycle to Work scheme as long as you pay your tax through PAYE.
Any bike that you can use for commuting is eligible to buy through Cycle to Work. You can choose a lightweight road bike, sporty hybrid, rugged mountain bike, compact folding bike or even an ebike. Kid’s bikes are not eligible.
You can also use your voucher to get any safety equipment you need for commuting. This might include:
- Helmets
- Bells
- Lights
- Luggage
- Locks
- Child safety seats
- Pumps and repair kits
- Reflective clothing
Usually your first payment will be taken from the next salary period after you signed your hire agreement.
For the duration of your hire period it is your employer that owns your bike and equipment. Your employer buys your bike and equipment and the leases it to you through an interest-free salary sacrifice scheme. The cost of your items is deducted from your salary as a non-cash benefit, so you can get savings on tax and national insurance.
It is your responsibility to insure your bike. If your bike is stolen or damaged beyond repair, you’ll continue to make your monthly payments until it has been paid for. We highly recommend you insure your bike.
To keep the Cycle to Work scheme tax free, there is no guarantee your employer will transfer ownership to you at the end of the hire period. This is usually what happens, but just make sure you check with your scheme provider first.
You have 3 options on how to end your hire agreement.
1. You can choose to return your bike to your Cycle to Work provider
2. You immediately take ownership of your bike and pay up to 25% of the ‘fair market value’
HMRC has set fair market values that employers must pay to keep the bike. So, you may be asked to pay up to 25% of the value of a bike costing more than £500 after 12 months.
Fair Market Value
| Age of bike | Less than £500 | More than £500 |
|---|---|---|
| 1 year | 18% | 25% |
| 18 months | 16% | 21% |
| 2 years | 13% | 17% |
| 3 years | 8% | 12% |
| 4 years | 3% | 7% |
3. Extend your hire agreement to 36 months for a single small refundable deposit (3% or 7%).
During your extended hire agreement, you will make no further monthly payments. At the end of the 36 months you can either choose to send your bike back to your Cycle to Work provider (and your deposit will be refunded) or you take ownership of the bike. No further payments are needed.
If you leave employment during your hire agreement any balance remaining will be repaid from your final net salary. Unfortunately, you will not benefit from tax and National Insurance savings.