London Halfords Employees' Question

It used to be the case that, if you used the scheme, you had to end up with a complete bike (e.g. you couldn't use it to buy a frame only). My understanding is that HMRC changed the underlying rules in the last couple of years so that people who already had a bike could use the scheme to buy equipment only. However, as I understand it the 'equipment only' option can only be used to buy cyclists' safety equipment.

This is how it's explained in the FAQs on the Halfords C2W page (http://www.cycle2work.info/siteemployeefaqs#a12) :

"In addition to selecting a bike, the cycle2work scheme also allows employees to select cycling safety equipment... Items such as frames and forks are cycle components, not safety equipment: safety equipment is something you add to the cycle or the cyclist to make cycling safer. If an employee were to access cycle components through the scheme, that Employer’s cycle2work scheme would be non-compliant."

My understanding is that you get a bike and the bit about components is actually safety equipment. But don't take my word for it:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/fil...

Phone the providers and ask for a list of shops in your area you can use your LoC, my C2W bike was through Halfords but I was given list of other bike shops I could use.

I managed to buy components and workshop tools with the 'spare change' from my Halfords Bike 2 Work vouchers after paying for the bike, but I've never tried to only buy components. Mind you that 'spare change' was about £400, where I made a last minute change on bike choice. My local Halfords said they could order in pretty much anything available in the UK (components or bikes for that matter). Under the desk they had current catalogues from all of the big UK distributors and also access to additional items via trade websites that were obviously different to what was available on their retail website.

This was a couple of years ago now but unless your employer is really particular about checking on how you spend your voucher, I don't think you'll have a problem (most don't even seem to check/require that you are riding your bike to work!). Halfords on the other hand might not let you spend it all on components - You could however just buy the cheapest bike they have, then spend the rest on the components - It might just depend on how strictly your local Halfords staff follow the 'rules'.

They might have tightened up on this sort of thing more recently though as the scheme was never really intended for those of us already keen cyclists to buy our n+1's or upgrade our current bikes with the latest bling!* (*unless that 'bling' is classified as 'safety equipment/clothing' such as a nice set of lights!).

The cycle to work scheme is for bikes, not components. If you want a brand new bike I believe Halfords will try to sort it out even if they are not a registered dealer (they will source the bike from someone that is) via the cycle to work scheme.

Not sure where you would get the idea of a tax break for components/loan of components.

Maybe worth to double check as well if your cycle to work scheme allows you to purchase components only, I know ours doesn't.