About the Marshalls Plc Cycle2work
Scheme and how to join
You must be a UK tax payer to be eligible to join this benefit scheme
CONTENTS
Benefits ........................................................................................................................... 2
How it works & how to join? ............................................................................................. 2
What happens next? ........................................................................................................ 3
Frequently Asked Questions ............................................................................................ 3
How does Cycle2Work work? .....................................................................................................................3
Where can I get my bike and accessories? .................................................................................................3
Who is eligible? ...........................................................................................................................................3
If I leave the scheme early or end my employment before I have completed my hire term, will I have to
give my bike back? ......................................................................................................................................3
What happens if my bike is damaged or fails to operate? ...........................................................................3
Can I use my letter of collection to get a bicycle for a family member, partner, friend etc? .......................4
Can I apply for more than one bicycle? .......................................................................................................4
When can I collect my bike? ........................................................................................................................4
What if I can’t get to a store, will I miss out? ...............................................................................................4
What happens if I decide I no longer with to use the bike for commuting after I have joined the scheme? 4
What value of bike can I choose? ...............................................................................................................4
If I decide not to participate in the scheme now, can I join later? ................................................................4
What happens when I reach the end of my hire term? ................................................................................4
Is this scheme affected by the Minimum Wage? .........................................................................................5
Marshalls Plc Cycle2Work Benefit Scheme Rules ........................................................... 5
Eligibility To Join ..........................................................................................................................................5
Tax And National Insurance ........................................................................................................................5
General ........................................................................................................................................................5
Date amended:
Background
Marshalls Plc in conjunction with Halfords are delighted to introduce the Cycle2Work scheme for all employees
subject to UK tax.
The scheme will be available for two one-month periods during each calendar year (Generally March and
September). Please keep looking for local advertisement to confirm when the scheme will next be available.
This scheme will enable all eligible employees to hire a bike and cycling safety accessories (primarily for
commuting to and from work) via a salary sacrifice scheme. At the end of the initial 12 month hire period your
employer may give you the option to either purchase the bike in line with the HMRC matrix or pay 7% of the
original value of the bike and enter into a further four year agreement. At the end of the four year period your
employer may then transfer the ownership of the bike to the employee.
Benefits
Providing the main use of the bike is for cycling to work, you will save tax and national insurance and you
can also use the bike in your leisure time too. In addition Marshalls Plc will hand back the re-claimed VAT
savings to the employee, which in some cases could equate to a potential saving of up to 52% of the
recommended retail price of the bike. What you save depends upon the rate at which you pay Tax and NI.
How it works & how to join?
You join the scheme by agreeing to sacrifice a portion of your basic contractual salary in return for a letter
of collection which you can then exchange for the bike and accessories of your choice. The amount of
money that you agree to sacrifice is fixed over a 12-month period. Once you have chosen your bike and
accessories either by going directly to any Halfords store, contacting their Special Order bike line or by
visiting their website; there are two easy ways to join, you can either log onto the website www.salaryextras.co.uk (Username: ‘ marshalls’ password ‘options’) or phone the Halfords Cycle2Work helpline on
0330 100 2313 to place your order.
IMPORTANT!
Whether you register on-line or by phone you will be required to complete a Hire Agreement. This
document will be downloadable from the website once you have placed your order. In addition you will
need the following information:
>
>
>
>
Username: marshalls Password: options
Your full name and address (including postcode)
The total cost of cycle and accessories rounded up to the nearest £10
Your Payroll number and National Insurance number
The Hire Agreement outlines your agreement with Halfords, the cost of your bike choice and the terms and
conditions of the Cycle2Work scheme. It must be completed in full, countersigned by your manager and
returned to the following address:
Freepost RRZG TBSL YHCT
Salary Extras
The Quadrangle
Crewe Hall
Date amended:
Weston Road
Crewe
CW1 6UY
What happens next?
Once Salary Extras have received your hire agreement your details will be checked and your order
processed. Your Letter of Collection (LoC) will be emailed directly to your email address. Once you have
received this please ensure that you redeem the LoC at your local Halfords store before the expiry date.
Frequently Asked Questions
How does Cycle2Work work?
The scheme is designed to encourage cycling, inline with the Department for Transport’s own Cycle to
Work scheme. A typical customer is therefore a commuter, and not necessarily a cyclist. As a participating
employee you will agree to sacrifice an agreed sum deducted from your gross salary. In return, you will be
provided with the use of a bicycle and cycling safety equipment for commuting, work related activities, and
leisure. Not only will you be able to get out and about on two wheels, through the scheme you will be able
to save on income tax and National Insurance that would otherwise have been payable by you. If that’s not
enough, you will also be able to spread the cost of cycling to work over a period of 12 months. Please refer
to the website for further details of costs and savings available under your scheme, and for details of
payment schedules.
Where can I get my bike and accessories?
You can choose from Halfords’ range of top brand products available at their 460+ stores or on-line at
www.halfords.com to decide the value of bike you require. To register your order and find out more about
the Cycle2Work application process please see the how to order section. Halfords will then send you a
Letter of Collection (LoC), which you can use within a set time limit in exchange for your bike and safety
equipment. Any difference between the Letter of Collection value and bike price will not be refunded. If you
still can’t find what you are looking for, simply call Halfords’ dedicated Cycle2Work team on 0845 077 8850
and they will do their best to source your dream bike for you.
Who is eligible?
Cycle2Work is governed by the Department for Transport. In order to receive the tax benefits resulting from
the salary sacrifice arrangement you will need to be an employee of Marshalls Plc, and be a UK taxpayer
If I leave the scheme early or end my employment before I have completed my hire term, will I
have to give my bike back?
If you leave the scheme or end your employment for any reason before you have completed your hire term,
you will be liable to pay the amount outstanding from your final net salary. If you take paid leave during the
period of the hire term your payments will continue to be deducted and you will be able to carry on using
your bike. If you take unpaid leave or leave where your pay is reduced to a lower amount than that
deducted, your payments will be suspended until you return to work at which time payments will
recommence for the remainder of the term originally set out
What happens if my bike is damaged or fails to operate?
Although Marshalls Plc owns the bike, you will be the custodian of the bike, so it is your responsibility to
take good care of it and make sure it is insured. To get the best performance from your new equipment you
should care for your bike as you would for any other means of transport and be sure to check parts for
Date amended:
wear and tear, and get any damage repaired quickly. If you are unsure of how to look after your bike
yourself, Halfords has developed a BikeCare cycle maintenance plan which you receive under the scheme
free of charge. For further information please contact the Cycle2Work helpline on 0845 0778850.
Can I use my Letter of Collection (LoC) to get a bicycle for a family member, partner, friend etc?
No. The bicycle must be used by you, mainly for commuting to work, i.e. for journeys made between the
home and workplace, or part journeys (for example, to the station), or for journeys between one workplace
and another.
Can I apply for more than one bicycle?
Yes, providing that you use both for commuting to work.
When can I collect my bike?
Your bike will be fitted for you in store and built for you so that it is ready to ride. If it is in stock simply
surrender your Letter of Collection (LoC) and present a form of ID and you can take the bicycle home with
you. If not, you should request that your chosen bike is ordered in to the store.
What if I can’t get to a store, will I miss out?
No, you can still participate. If there is not a Halfords store near your home or work, or you are unable to
get into store please phone our Cycle2Work team on 0845 077 8850 to arrange home delivery for an
additional cost of £14 (inc VAT).
What happens if I decide I no longer wish to 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 will need to
advise first point either by logging a call or by using ask HR via first point, who will then advise payroll to
arrange for the remaining salary reductions to be taken from your pay after tax and National Insurance
have been deducted. You cannot return the cycle and have your salary re-adjusted.
What value of bike can I choose?
The maximum letter of collection (voucher) value you can have through this scheme is £1000, the minimum
being £100. When deciding on a bike value, consider carefully the amount of your salary you can afford to
sacrifice each month and the type of bike that will best suit your needs. Halfords’ staff in store will be able
to advise you. Once you have chosen your value, completed the hire agreement and received your letter of
collection you will not be able to increase or decrease your limit. If your bike costs less than the value you
selected, your salary will still be reduced as set out in your hire agreement. We therefore recommend that
you fully utilise your letter of collection by spending the difference on accessories.
If I decide not to participate in the scheme now, can I join later?
Yes, but only during the specified times which will be communicated nearer the time.
What happens when I reach the end of my hire term?
Although you will have benefited from full use of your bike for the length of the hire term, Marshalls Plc
owns the bike for the duration. At the end of the hire term, Marshalls Plc may sell the bike to you for its fair
market value at that time, although this is the subject of a separate agreement once your hire term has
finished. At the end of the initial 12 month hire period your employer may give you the option to either purchase
the bike in line with the HMRC matrix or pay 7% of the original value of the bike and enter into a further four year
agreement. At the end of the four year period your employer may then transfer the ownership of the bike to the
employee.
Date amended:
HMRC MATRIX
Age of cycle
Acceptable disposal value percentage
Original price of the cycle less than £500
1 year (12 month hire period) 18%
16%
18 months
Original price £500+
25%
21%
2 years
13%
17%
3 years
8%
12%
4 years
3%
7%
5 years
Negligible
2%
6 years & over
Negligible
Negligible
Is this scheme affected by the Minimum Wage?
You may join the scheme even if by doing so you could fall below the National Minimum Wage. However
under these circumstances you will be advised of your options. It may be the case that you will have a
limited choice of bike value, and you may also be offered an alternative to a Salary Sacrifice arrangement.
Marshalls Plc Cycle2Work Benefit Scheme Rules
Eligibility To Join
>
>
>
The Scheme is open to all staff subjected to UK tax legislation
The Scheme is provided at the discretion of Marshalls Plc.
In order for members of staff to participate in this scheme, they must sign an agreement to a change in their
terms and conditions relating to the scheme and the salary sacrificed in return for the hire of the bike.
Tax And National Insurance
>
>
>
Only the salary amount sacrificed to hire your bike will be exempt from tax and national insurance.
NI exemption will only apply to the proportion of salary that is more than the primary earnings threshold.
Pensions – participation in the scheme will not affect the employees pension build up in the Marshalls Plc
Pension Scheme. However, there may be a small reduction to the State Second Pension as a result of paying
lower National Insurance contributions.
General
>
>
If any member of staff is found to be defrauding the system they will be subject to disciplinary action, which
could result in dismissal.
This scheme cannot be used for the payment of bicycles that will not be used for commuting.
Date amended: