What do I need to know?
Thanks to Halfords cycle2work, your employer can provide you with a new bike and the appropriate cycling safety accessories and – providing the main use of the bike is for commuting to work – you will incur no tax or National Insurance on the benefit. This means you'll save a vast amount of money compared to purchasing a bike outright yourself on the high street. What's more, by paying for this monthly from your salary (over a period of 12 or 18 months), you'll hardly notice the cost – this is called a salary sacrifice.
What is a salary sacrifice?
A salary sacrifice means giving up part of your salary in exchange for a non cash benefit – in this case, the bike and safety accessories.
Are you eligible?
Your employer must be willing to run the scheme before you can acquire your bike. The scheme is available to UK taxpayers who pay their tax under the PAYE system. £1000 is the maximum you can spend!
You can spend anything from £100 up to a maximum of £1,000 on a bike and accessories. This can work out to as little as £5 per month. Check out how much you can afford on our cost calculator.
Getting Started!
It's really simple to join – see our How to Register page.
| Retail value of bike and accessories |
£100 |
£500 |
£1000 |
| Gross monthly reduction** |
£8.33 |
£41.67 |
£83.33 |
| Tax Savings** |
£1.67 |
£8.33 |
£16.67 |
| National Insurance Savings** |
£1.00 |
£5.00 |
£10.00 |
| Net cost per month |
£5.67 |
£28.33 |
£56.67 |
| Total cost over 12 Months |
£68 |
£340.00 |
£680.00 |
| Total savings made |
£32.00 |
£160.00 |
£320.00 |
* Price includes all costs in running the scheme over a 12-month period. Costs included can be used as a guide only, and may vary subject to personal taxation.
**Assumes 20% Tax Rate and assumes 11% Employee NIC Rate.
For more information contact our helpdesk on 0800 458 7929