This "Cycle to work" Scheme malarkey

pompey-dude
pompey-dude Posts: 35
edited August 2007 in Road beginners
Hello newbie here !!!
just wondering if any one has the low down on this "Cycle to work" malarkey.
I was under the impression that you only borrow the bike from your company, and it remains their property all the while they are still running the scheme, is this the case ?
I think I may be able to get my company to run it if they are not already.

thanks in advance
Phill
:D

Comments

  • alfablue
    alfablue Posts: 8,497
    check out Cyclescheme for all the details. Yes you're right, the employer buys the bike and loans it to you, you pay the price (divided by 12 or 18 months) from your gross salary, so it reduces your tax and NI thus saving you maybe 30%. Most employers can also claim back the VAT and they should (unless they are theiving s*its) pass on the saving to you, further reducing the monthly payments. (Some employers, like my Uni, can't reclaim VAT). The employer also saves money because their NI contribution decreases.

    At the end of the loan period they can agree to sell the bike to you at a market rate (usually taken as 3 to 5% of the total cost), though this cannot be explicitly agreed at the outset because that would change the deal to hire purchase, which is not covered by the salary sacrifice tax break.

    Cyclescheme lets you use the vast majority of local bike shops, Halfords, Evans and Wiggle also do their own schemes. If you end up with Halfords, note that they will source almost any bike, it doesn't have to be one they normally stock.
  • pompey-dude
    pompey-dude Posts: 35
    Thanks for the reply Alfablue.
    I have e-mailed my HR department to see if they do or will participate in the scheme.
    could be a great way to get the bike I want ??
    thanks
    Phill
  • alfablue
    alfablue Posts: 8,497
    Some HR departments decide its too much admin, so be prepared to tell them, or better show them that nearly all of the paperwork is provided by the scheme operator. Good luck
  • ochils11
    ochils11 Posts: 7
    Hi, Cycle2work is a great scheme with a few pitfalls, I've bought a road bike and MTB....

    1. You can't top up your voucher with cash as this goes against the "rules"
    2. Halfords will source any bike, NOT quite true, because if the bike you want is from wiggle, then you'll need to do the phoning, checking, bargaining, etc and then not take no from Halfords and push them to buy it from wiggle (not a lot of profit in it for them I believe).

    Second year running I've had weeks of grief because our company uses Halfords, but the savings are worth the grief.

    Regards

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