cycle to work scheme

saltyman
saltyman Posts: 472
edited November 2009 in MTB buying advice
been reading up and asking at my workplace about the cycle to work scheme, and some stories are still confusing!

anyone on here been through it and can fill in the gaps?

heard stories of 35-45% off?

some companies are restricting what stores can be used..........my company was exclusive to halfords but are changing it to any store next year.

tempted as im trying to get the wife into biking for next spring.
roberts dogs bolx
cannondale hooligan 1
cannondale badboy

Comments

  • dsmiff
    dsmiff Posts: 741
    Most likely they will use "cyclescheme" http://www.cyclescheme.co.uk/ you will save whatever you pay in tax (30 or 40%) and NI. Some companies also pass on the VAT savings so you could get another 15%.

    Most companies will have a £1000 limit and you should not really be able to top this up, Halfords wouldn't but I believe LBS's may be a bit more flexible.

    Bear in mind that cyclescheme charges the shop 10% so some may not want to sell discounted bikes - but I'm sure they would come to some sort on compromise on this.
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  • saltyman
    saltyman Posts: 472
    i read that that evans cycles can get you 50% off!

    used the calculator things on soem sites and they say a £1,000 bike will cost you £600 over the 12 months, that seems great, very tempted.

    work mate wants a new bike through this too.
    roberts dogs bolx
    cannondale hooligan 1
    cannondale badboy
  • I got my Yukon FX-3 through a similar scheme. I'm a local government worker and the authority I work for offer it. Like someone mentioned before I also got the VAT off it. Meant I got a 650 quid bike for 180.

    Basically the bike was on offer at Pauls cycles for 309 anyway, all the savings through work bought it down to 180ish and its taken monthly from my pay packet.
  • alfablue
    alfablue Posts: 8,497
    saltyman wrote:
    i read that that evans cycles can get you 50% off!

    used the calculator things on soem sites and they say a £1,000 bike will cost you £600 over the 12 months, that seems great, very tempted.

    work mate wants a new bike through this too.
    No, regardless who the scheme is operated with, the saving is dependent on 2 things:

    1) How much tax and NI you pay
    2) Whether your employer can claim back the VAT and pass that on to you.

    The "save up to 50%" claim is just advertising - you may achieve that but it depends upon your circumstances, not the people operating the scheme.

    There is a third factor - as dsmiff rightly points out, some scheme providers (notably Cyclescheme) allow you to use virtually any local bike shop, but they charge the shop 10% commission, therefore shops may often refuse to sell at less than RRP, or may charge you an extra fee (for example Ribble charge £50, Spa Cycles charge 12.5%). Therefore a scheme operated by a bike dealer themselves (so Evans, Wiggle, Edinburgh Cycle Co-Op, Halfords etc) may mean you can get a bike at the regular shop price, including sale prices. With Halfords, whilst they can get most bikes, they charge RRP on those they source from outside their usual range.

    There is of course no need for your employer to use any scheme provider, they can administrate the scheme themselves and then you can buy at any shop at the best price available.

    Just as an illustration, I have just finished paying for my £999 Planet-X SL Pro Carbon, over 12 months. The gross deduction from my pay was 12 x £83, but because I don't pay tax or NI on that amount, the net reduction in pay was approx. 12 x £49, so £588. At the end I bought the bike from my employer for 5% of the original price, plus VAT so £57.50. The total cost to me was £645 for a £999 bike 8) As I work in the public sector my employers do not get the VAT back, if they could then I would have paid maybe £150 less, this would have been the magic 50%.

    Note that the scheme is (unfortunately) better for higher rate tax payers. :cry:

    I received my voucher today for my new bike, a Condor Heritage Tourer :lol:

    Such are the demands of commuting, the poor P-X needs to be replaced :wink:
  • saltyman
    saltyman Posts: 472
    8)

    this is a great help, thanks. :wink:
    roberts dogs bolx
    cannondale hooligan 1
    cannondale badboy
  • passout
    passout Posts: 4,425
    I used cyclesheme and got 40% off and paid over a year at 0% which is worth something too. It's a good scheme. Some shops don't include sales bikes are would stick on extra charge if it was a sales bike, others don't. Mine was capped at £1000 but you can 'pay the difference' at some places like Merlin or On One. In fact I've heard that at On-One or Planet X they even sell just frames through this scheme, although I can't testify to it. Overall it's worth considering. I bought a full carbon Ribble Road bike with Ultegra which was on offer at £999 for about £600! As above - Ribble did charge me £50 but I'm more than happy with what I got.
    'Happiness serves hardly any other purpose than to make unhappiness possible' Marcel Proust.