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Cycle to Work Scheme

Cycle to work scheme

Switch to a greener commute with our Cycle to Work employee benefit

Regular cycling is a great way to boost your physical and mental health and wellbeing while doing your bit for the planet. Check out our Cycle to Work Scheme employee benefit via Purple Place and discover savings on bikes, safety accessories and clothing for your commute to and from work! 

How the scheme works

Cycle to Work allows you to order a new bike, equipment or both up to the value of £5,000 (subject to affordability). Your employer pays for the order up front, you agree to hire the bike from Halfords (or your chosen independent bike shop), who are the legal owner of the bike from the start of the hire period. You pay your employer back through your salary to make tax savings of 28% - 47%. When your application is successful, you'll be given a Letter of Collection (LoC) to use in-store or online at over 1,250 cycling retailers – including Halfords, tredz.co.uk, and hundreds of independent bike shops. Find out more in our FAQs. 

As well as all of the health and wellbeing benefits of cycling to work, you'll also have exclusive access to a range of other benefits whilst Cycle to Work payments are deducted from your salary:

  • Lifetime safety checks on all cycles obtained through the scheme
  • Lifetime guarantee on Halfords brand cycles
  • 10% off cycling essentials in any Halfords store for the duration of your initial hire period (restrictions apply)
  • Access to all in-store sale and promotional prices at Halfords and Tredz
  • 14 days free cycle insurance

If you have any questions that are not covered above, please check out a full list of FAQs here.

The Process

  1. Choose your bike, equipment or both - Using our Store Locator, find your preferred cycle store and choose what you want to order up to the value of £5,000. Remember you can also use your LOC online.
  2. Add up your total - When you know what you want to order, add up the total cost. This should not exceed the £5,000 limit. Make sure you know exactly how much you want to spend as you cannot change your order amount once you’ve applied.
  3. Apply and confirm - Enter the total order amount into your application and it will show you how much you will save as well as how much will be deducted from your salary. When you are happy, confirm your application by electronically signing your Hire Agreement.
  4. Employer review - The UoM Reward Team will review your submitted application to ensure you meet the Cycle to Work requirements. They will take into account other gross salary deductions such as Childcare Vouchers and Pensions.
  5. Download your Letter of Collection - After the UoM Reward Team approves your application, you will receive your LoC via email to use in-store or online. Please read your LoC carefully to make sure you have got everything you need before picking up your order.

Eligibility

  • A maximum of one active order at a time (subject to affordability).
  • The scheme limit is £5,000 (subject to affordability).
  • Your hourly rate after Cycle to Work Scheme deductions cannot take you below the National Minimum Wage (£11.44 per hour from 1st April 2024)
  • The payments for your Cycle to Work order can be spread over 12 or 18 months. For those employees on a fixed-term contract, your remaining contract length must exceed your chosen repayment period. 

 

Important information for applicants and users of the Cycle to Work scheme

HMRC rules of usage

The Cycle to Work Scheme is solely for bikes that are intended to be used primarily for cycling to work, in accordance with HMRC requirements.

To ensure HMRC compliance and benefit from Income Tax and National Insurance savings on the value of your bike, at least 50% of your bike’s use must be for cycling to and from work in the chosen hire period. This includes any combination of journeys between home, station and office, as well as cycling between offices or to visit clients.

You do not need to keep a detailed record of the time or number of miles you cycle. However, please be mindful if you are working from home as, if less than half of your bike’s use is for cycling to and from work, then it could become subject to income tax in the normal way. It is your responsibility to ensure you comply. 

Cycle insurance

If your bicycle is stolen during the ‘hire period’ of the scheme, you are still liable for the remainder of your payments. This means if your bicycle is stolen on day one or month two, you will still be liable for all the subsequent payments. It is highly recommended that you consider insuring your bicycle from the day you collect your bike or have your bike delivered, as per the advice of Reward Gateway.

Fire safety advice for electric bikes

 Please watch the video below.