Please note the following list is not exhaustive.
Can I purchase bikes from other organisations besides Halfords?
Yes! You can also shop at www.tredz.co.uk by using your LOC number in the checkout process
and www.E-bikesdirect.co.uk by browsing online and then calling us on 0345 504 6444 or emailing
firstname.lastname@example.org to place an order.
You can also shop with more than 800 independent bike shops that accept our Letters of Collection. Visit
the Store Locator to see your local options.
How do I apply for the scheme?
Please visit the Cycle2Work website and select "Employee Sign Up".
What is IPSA’s employer code?
Which email should I use to register with the scheme?
You can use any address, work or personal.
How long do I have to apply for the scheme?
The scheme operates all year – you can apply at any time.
How long will recoveries be made from my salary?
How much will I save in tax and National Insurance contributions by joining the scheme?
Please refer to the Cycle2Work Savings Calculator.
Can I select more than one bike?
The legislation does not prohibit the selection of two bicycles providing that both are used for
commuting to work.
What if I don’t use the bike every day to get to work?
It's OK to use the cycle to work scheme for a bike that you use "when practical" to get to work.
What if I don’t use it for my entire journey?
It is also OK to use the bike for part of a journey to work, for example, to get to the station.
There is no requirement for the cycle to be your main form of transport, or even a regular form of transport, to get to work. The only requirement is that the main use of the bike should be for home
to work travel.
What if I also use the bike for other journeys?
You are welcome to use your Cycle2Work bike at any time for recreational use.
Do I have to keep records of when I use the bike to get to work?
No. There is no requirement to keep records.
What is a Letter of Collection (LoC)?
LoC stands for Letter of Collection of which you exchange for your chosen bike.
When can I collect my bike?
As soon as you receive your LoC you can go and collect your bike. The LoC
will be emailed to you within two weeks of signing up.
What equipment is available?
Cycles and cyclist’s safety equipment are included. The tax exemption defines a “cycle” as “a bicycle,
a tricycle or a cycle having four or more wheels, not being, in any case, a motor vehicle” (section 192(1) of the
Road Traffic Act 1988 (c52.)). An electrically assisted pedal cycle can be included under the scheme.
Cyclists’ safety equipment is not defined in the legislation and a common-sense approach should be
taken when selecting it. This could include:
cycle helmets which conform to European standard EN 1078
lights including dynamo pack
mirrors and mudguards to ensure the rider's visibility is not impaired
cycle clips and dress guards
panniers, luggage carriers and straps to ensure luggage is carried safely
locks and chains to ensure the cycle can be safely secured
pumps, puncture repair kits, tool kits and tyre sealant to allow for minor repairs
reflective clothing, white front reflectors and spoke reflectors
Accessories that are not available include:
Gro Pro computers
Items such as frames and forks are cycle components not
safety equipment. Safety equipment is something you add to the bicycle or the cyclist to make cycling
More details can be found in the HMRC guidance.
Is any care plan included?
Yes, you will receive a free one-year bike care plan on all bikes. This includes an annual Silver service
at the end of the plan and fitting on all parts and accessories bought from Halfords.
What happens if I do not use the bike for commuting after I have joined the scheme?
You will no longer qualify for the tax relief afforded to this benefit. In such circumstances, you should
contact the IPSA payroll department who will arrange for the remaining salary reductions to be
taken from your net pay, for example after tax and National Insurance have been deducted.
You cannot return
the cycle and have your salary readjusted.
I’ve only been employed as a member of staff for a short time or am a casual member of
staff. Can I take part?
Yes, however, you may be given alternate options to the salary sacrifice scheme. Please apply in the
Can I take part in more than one scheme?
No, you can only apply for another cycle when your 12-month hire period has finished.
Who owns the equipment?
The legislation that governs a cycle to work scheme states that IPSA must own the equipment. There
can be no automatic right for you to own the equipment at the end of the agreement. If you do,
there cannot be a claim for tax exemption. Therefore, a cycle-to-work scheme operates as a loan.
IPSA is technically lending the equipment to you for a fixed period of time. Although you do not
actually own the equipment, you remain the custodian of the equipment and are free to use it as you
wish, providing it is mainly for cycling to work.
What is the maximum value of equipment I can obtain through Cycle2Work? / What is a
Group Consumer Credit License?
The Financial Conduct Authority has issued a Group Consumer Credit License allowing any employer to run
a Cycle2Work scheme. The license allows you to hire equipment up to the value of £2,500 inclusive of
What if I am over state retirement age?
You will benefit from tax savings but not from any savings in National Insurance. Your employer will
still save employer’s National Insurance.
Can I get a change from an LoC if I don’t use it all?
No. You need to choose an LoC to the nearest £1 above the value of the bike and related equipment
that you want to collect.
Can I participate if I am under 18?
Yes, however, a guarantor form would need to be completed by your employer.
Is this a hire purchase agreement?
No. the bike is provided to you as a benefit under a salary sacrifice scheme. This means that you
agree to a reduction in your salary and IPSA provides you with a bike for use to get to work.
Can I join if I am on the National Minimum Wage (NMW)?
Yes, however, you will be given alternate options to the salary sacrifice scheme. Please apply in the usual way.
What if I leave my employment or am made redundant?
If you leave before the end of the agreed repayment period, you must pay IPSA the balance of the
amount still to pay and this will be deducted automatically from your final net pay. If your final salary
does not cover the final balance owed, IPSA will write to you for the outstanding sum.
You may then have continued use of the equipment without further payment until the agreed
repayment period expires, when you may be offered the opportunity to purchase the equipment for
its fair market value. However, this transfer of ownership is subject to a separate agreement and is
not governed or influenced by the original agreement you signed as part of the scheme.
What if I already have another salary sacrifice benefit, childcare vouchers for example?
Being part of more than one salary sacrifice scheme is not an issue as long as the total amounts of
the schemes do not take your salary below the National Minimum Wage. If your other scheme(s), for example, Childcare vouchers, leave you above the National Minimum Wage, you can only salary sacrifice to
the point where your gross salary remained at least the National Minimum Wage.
What if my bike gets a fault, is accidentally damaged or stolen?
You will receive a warranty with your bike, the length of this warranty is generally dependent on the
brand. The responsibility for loss, damage, theft, roadworthiness and repair is yours for the duration
of the scheme.
It is recommended that you obtain separate insurance, or check your bike is covered under your
home contents insurance policy.
If your home contents insurer covers the bike, you must inform them that IPSA owns the bike.
Payments will not stop or be suspended due to loss or damage to the bike.
Can I use the scheme to obtain a bike for someone else?
No. it must be for you to use for at least part of your journey to work.
However, if you participate in the scheme you will receive a 20% off the entire Apollo bike range for
your family members.
Can I add my own money to the LoC value to get a more expensive bike?
No. You cannot “top up” or add to your LoC using your own funds because you don’t
own the bike during the term and this would cause issues at the end of the hire period.
Why doesn’t my agreement show my actual savings?
The gross payment is the value before tax and National Insurance has been taken and is stated on
your agreement and each of your payslips. The net payment is the true cost after your tax and
National Insurance savings and varies from person to person. Your agreement will state a gross value
as this will not change based on personal tax circumstances.
What happens at the end of the scheme?
When your Cycle2Work hire finishes, Halfords will be in touch with you to discuss your options
relating to the “transfer of ownership”.
Will a salary sacrifice affect my entitlement to benefits?
Possibly, although in most cases the effect is likely to be small. However, you need to be aware of
the implications of paying less National Insurance contributions and accepting a reduced salary. For a
small number of employees, a cycle to work scheme might not be appropriate. There may be an
Entitlement to contribution-based benefits like the state pension, statutory sick pay,
statutory paternity pay, statutory adoption pay, jobseeker’s allowance, incapacity benefit,
widowed parents allowance, bereavement allowance and bereavement payment. This is
particularly likely if your salary after taking a salary sacrifice falls below the Lower Earnings
Entitlement to earnings-related benefits like maternity allowance, the state second pension
and statutory maternity pay, which are based on the actual gross pay you receive.
If you would like a fuller explanation of the effects of salary sacrifice on benefit entitlement, please
What if I change my mind after I’ve collected the bike?
Once your LoC has been issued – you have a 14 day "cooling off" period in which you
are able to cancel the agreement.
Is Statutory Maternity Pay (SMP) affected?
SMP might very well be affected. SMP is based on the actual pay you receive and not your basic
salary before any salary sacrifice. Therefore, if you choose to reduce your salary to benefit from cycle
to work, the salary on which SMP is based would be reduced.
However, if you qualify for occupational maternity pay, based on your length of service, this is
calculated using your basic salary and would not be affected by this scheme.
What about other statutory entitlements?
If these are based on actual and not basic salary, these may also be affected.
If I get any type of tax credits, are these affected?
You will need to check your individual circumstances at the time. As your salary will be reduced, your
entitlement to tax credits may increase.
Will Salary Sacrifice have any impact on my Child Maintenance and Enforcement
Commission payments/Child Support Agency payments?
Child maintenance payments to the Child Maintenance and Enforcement Commission are broadly
calculated by reference to your net income, for example, your pay after the deduction tax and National Insurance contributions. The value of any bicycle benefits provided under salary sacrifice is not
included in this calculation.
More information can be found at Manage your Child Maintenance Service case.