Next are now able to offer a brand new “salary sacrifice” benefit, the Cycle2Work scheme operated by Halfords.
All employees* throughout the UK will be able to order bicycles and/or accessories through the scheme and take advantage of the tax advantages afforded by salary sacrifice.
The scheme will go live on September 30th and there will be a 4-week window in which you can place your order.
Cycle2Work (Halfords) will be running roadshows at some of our larger sites on various dates; so please look out for publicity posters.
You must be a permanent employee (Next or Lipsy) with the business that has been employed for a minimum of 12 months
What Is Cycle2Work?
Cycle2Work is a great employee benefit which offers the most cost-effective way to get new cycling equipment.
The scheme is run via a salary sacrifice meaning you wont pay tax or national insurance – this saves you between 32% and 42% on your new bike and accessories. This reduced cost is simply deducted out of your payslip over 12 or 18 months, so no need to worry about large one-off costs
How Do I Sign Up?
Simply visit www.cycle2work.info using the employer code NEXTC2W (Note: this link may not work on Google Chrome at Head Office, but will outside of the Next Network.)
You’ll then receive an email with a link to verify your email address and complete your application. Your application will then be sent to your employer, and once approved, you’ll receive your Letter of Collection by email. Now you are ready to pick up your new bike and accessories!
Who Owns The Equipment?
The legislation that governs a cycle to work scheme states that cycle2Work will own the equipment during the hire period. There is no automatic right for you to own the equipment at the end of the agreement. If you do, you cannot claim the tax exemption. Therefore a cycle to work scheme operates as a loan: Halfords is technically loaning the equipment to you for a fixed-period of time. Although you do not actually own the equipment, you remain custodian of the equipment and are free to use it as you wish, including cycling to work.
When And How Long Do I Have To Apply For The Scheme?
The scheme opens on Monday Monday 30th September and closes on the Sunday 27th October 2019…but to avoid missing the deadline, why not do it now?
Can I Select More Than One Bike?
Yes you could. For example, you may have a summer route and a winter route to work, both requiring different things from a bike.
Can A Letter Of Collection Be Used To Get A Bike For A Family Member, Partner Or Friend?
No. The cycle must be used by you. For example: Journeys made between the home and workplace, or part journeys (e.g. to the station), or for journeys between one workplace and another or just for general use.
What Is The Maximum Value Of Equipment I Can Obtain Through Cycle2Work?
You are able to hire equipment up to the value of £1,500 inclusive of VAT.
When Will The First Deduction Come Out Of My Salary?
In Your November 2019 pay.
Can I Use The Scheme To Buy Bikes That Are Subject To Special Offers?
Yes You Can.
What Other Benefits Does The Scheme Offer?
- Full bike warranty
- Life time guarantees on Halfords bikes
- 6 week free bike check
- Free 1 year cycle care
- 8 weeks free bike insurance
- 20% Apollo bike discount for friends and family
What Happens At The End Of The Scheme?
When your Cycle2Work hire finishes, cycle2work will be in touch to discuss your options relating to the “transfer of ownership”. At the end of your Hire Term, you may be offered the option to extend the hire of the bike at no extra charge through Cycle2Work. The term of this extended hire could be up to 60 months, or until the value of goods have depreciated to a negligible value.
Will A Salary Sacrifice Affect My Entitlement To Benefits?
Possibly, although in most cases the effect is likely to be small, if at all. However, you need to be aware of the implications of paying less tax and NI contributions and accepting a reduced salary. It is recommended that you seek professional advice if you have any concerns and need more information.
HMRC National Minimum Wage rules will apply and may affect your eligibility for the scheme. If this is the case then you will be offered an alternative route to get a low cost bike.
I’ve Only Been With Next A Short Time. Can I Take Part?
Our scheme criteria will only let you apply if you have been with the business for 12 months, and must be employed on a permanent basis.
What Happens If I go On Maternity Leave?
Payments will be frozen until you return to work after your maternity leave, Payments will the recommence until you have fully repaid the cost of the hire.
If I Decide Not To Participate In The Scheme Now Or I Miss The Application Window, Can I Join Later?
Depending on the success of this year’s scheme, we may choose to repeat it in the future, However, Next cannot guarantee that there will be another opportunity to participate.
Where Can I Get My Bike And Cycling Safety Equipment?
Halfords has the largest selection of cycles and cycling safety equipment in the UK. Look at their huge range of top brand products
- In their network of 465 shops
- Cycle Republic
- From one of their 700+ partnered independent bike retailers
Call 03455046444 for details of the shops in your area.
You can contact the Halfords Cycle2Work team with details of your requirements and they will be happy to suggest the options available.
What If My Bike Gets Stolen/Accidentally Damaged?
Payments (deductions from your salary) will not stop or be suspended due to loss or damage to the bike so we strongly recommend 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 Halfords owns the bike. Please also see the Halfords scheme Q&A for further information.
Can I Take Part In More Than One Scheme?
You can technically apply each time Next runs a scheme.
What Happens If I Leave, What Happens To The Bike?
If you leave before you have paid for the full cost of hire then the money you owe will be deducted from your final salary or collected by a Debt Collection Service (Note: This may impact on your credit rating).
Who Is Eligible For The Cycle2Work Scheme?
Employers of all sizes across the public, private and voluntary sectors can implement a tax-exempt loan scheme for their employees. To maximize the benefit of implementation, it is desirable that [participation in the scheme should be as broad as possible. To qualify for the tax exemption, the cycles and cyclists safety equipment loaned by Halfords under the scheme must be available to employees generally with no groups of employees excluded
For More Information:
Please also read the Halfords Cycle2Work scheme Q&A by simply visiting www.cycle2work.info using the employer code NEXTC2W (Note: this link may not work on Chrome at Next Head Office, but will outside of the Next Network).