Ride2Work question

BoardinBob

One of my benefits at work is the Evans Ride2Work scheme and I'm considering signing up. No one here uses it though but I had a question about the effect on your monthly salary. As an example, taking a salary of £30,000 (not my actual salary ) and a bike at £1000

Retail cost of your purchase
Total cost including VAT before savings £1000
Total cost excluding VAT before savings £851.06
Monthly salary sacrifice (1) £70.92

Savings via Ride2Work
Income tax saving £187.23
National insurance saving £93.62
VAT saving £148.94

Total Savings £429.79

Total cost after saving £570.21
Effective monthly cost £47.52


So my question is this. When you look at your pay slip, would your monthly salary be reduced by £70.92 or by £47.52

drewcole81

The reduction on your pay slip will say more than what is taken in reality... its really hard to explain. I just looked into this cause when you look at my deductions on my pay slip it adds up to me paying £650 for a £800 bike.

Although when you take the difference between an old pay slip and my current one the difference in take home is the ammount i thought it should have been meaning i only pay £450ish for the bike.

It does work out and is worth doing.

Schoey

Our company use Halfrauds for the cycle2work scheme. What sort of piece of crap can I buy from them?!

supersonic

Anything you like! They can order in bikes from amny places that they dont stock (at full rrp though). Plus the GT and Carreras are very good.

drewcole81

You can buy pretty much most makes from Helfrauds, they stock Kona, GT, Boardman and VooDoo anyhow, but you can have them order in nearly all makes like Spesh, Giant, Marin etc etc.

Only down side is you have to pay for it first, which shouldnt be to much trouble. Just go and test ride the bike you want at another shop before you order.

Just dont use Helfrauds to service the bike as 9 times out of 10 they will cock it up, take it to a good bike shop or do it your self. They dont have very good after sales or service in the bike huts.

Schoey

Ahhh! Didn't realise that - suppose it will be a full rrp though?

Is there a limit on the cost of bike on cycle2work? The bike I'm looking at getting is a spesh enduro... so about £2k's worth

Chaka Ping

My firm uses Halfords. Just decide which bike you want then give their Bike 2 Work team a bell, you can google for the number.

They'll tell you if they can get it, though they might half-heartedly try to talk you into buying one of their steeds.

Chaka Ping

And to Boardinbob - Have you tried posting the same Q on AccountancyRadar?

I've done the scheme twice and all I can tell you is that it cost me about £58 per month for eight months - then a £100 payment at the end of the scheme to buy the bike.

drewcole81

Schoey wrote:

Ahhh! Didn't realise that - suppose it will be a full rrp though?

Is there a limit on the cost of bike on cycle2work? The bike I'm looking at getting is a spesh enduro... so about £2k's worth

There is no limit on how much you can spend on the bike, its just the voucher that has a limit of £1000 so you'd have to put the rest towards the voucher.

Chaka Ping

You're only supposed to buy a bike to the value of £1k.

Any spend over that amount would have to be arranged informally with a friendly shopkeeper.

Halfords are quite inflexible on this. I have tried.

Anonymous

Chaka Ping wrote:

You're only supposed to buy a bike to the value of £1k.

Any spend over that amount would have to be arranged informally with a friendly shopkeeper.

Halfords are quite inflexible on this. I have tried.

Wrong. It's up to the employer how much you can spend, although the usual limit is £1k

Chaka Ping

I can only talk about Halfords, but I was led to believe the Govt had placed a £1k cap on the scheme.

And I thought there was previously no limit, but it was felt that people were taking advantage.

Happy to be corrected though.

Douche

Basically there is a reason for the £1000 cap.

A company can provide vouchers over and above that amount but in order to do so they would have apply to the FSA etc and become an approved 'lender'. At £1000 and under any company can do it, if say you worked for a bank or alot of other financial instutions they would already have the necessary licence and the limit would be decided by them. Sadly most of companies about dont have the required licence so its pretty much £1000 at full RRP,. though a few weeks ago in halford me missues got one on there scheme and depsite me actually trying to explain to the employee that discounted bikes were not part of the scheme and could not be purchased with the voucher (im a bit thick like that you see), he insisted that they were (other staff concurred with him) and hey presto!!! a £500 bike for £330 and thats before any tax savings ... ask and dont assume they know, you may be able to get more for your money than you should.