Cyclescheme - bike to work scheme - ownership??
bells0
Posts: 414
Feck
Having seen other people on the various cycle to work schemes pay back what their company see's as being fair value at the end of the term, i was a little shocked to get an email from Cyclescheme demanding £57.50 to be paid to them as they are the legal owners, and if i don't they will take the bike back!
Is this right?
Not sure why, but i assumed i would just pay my company a figure [seen plenty of people on here mention £25!!] and the bike would be mine. I work for my Father's company and i am the only person to have gotten a bike through the scheme.
This is the email:
Dear Christopher,
Your employer has opted to give you the opportunity to buy the bicycle and safety equipment (if applicable) hired by you and has transfered ownership
to Cyclescheme Ltd, so that we may handle the purchase arrangements.
If you wish to purchase the equipment please complete this online Secondary Agreement and make payment of £57.50 by using our secure payment gateway.
If you decide not to purchase the Equipment from us, please contact us and we will advise on where to return your equipment.
Without the transfer of ownership by a fair market value payment or return of the bike this would result in a benefit in kind that should be declared on a P11D which may result in any tax savings, made during the hire period, being disallowed.
Kind regards,
The Team at Cyclescheme
:?
I don't mind paying £57.50 but i don't see why i get's paid to cyclescheme [+ to be honest, i'd rather pay my company £25 for it!!
]
Having seen other people on the various cycle to work schemes pay back what their company see's as being fair value at the end of the term, i was a little shocked to get an email from Cyclescheme demanding £57.50 to be paid to them as they are the legal owners, and if i don't they will take the bike back!
Is this right?
Not sure why, but i assumed i would just pay my company a figure [seen plenty of people on here mention £25!!] and the bike would be mine. I work for my Father's company and i am the only person to have gotten a bike through the scheme.
This is the email:
Dear Christopher,
Your employer has opted to give you the opportunity to buy the bicycle and safety equipment (if applicable) hired by you and has transfered ownership
to Cyclescheme Ltd, so that we may handle the purchase arrangements.
If you wish to purchase the equipment please complete this online Secondary Agreement and make payment of £57.50 by using our secure payment gateway.
If you decide not to purchase the Equipment from us, please contact us and we will advise on where to return your equipment.
Without the transfer of ownership by a fair market value payment or return of the bike this would result in a benefit in kind that should be declared on a P11D which may result in any tax savings, made during the hire period, being disallowed.
Kind regards,
The Team at Cyclescheme
:?
I don't mind paying £57.50 but i don't see why i get's paid to cyclescheme [+ to be honest, i'd rather pay my company £25 for it!!
] 0
Comments
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I think it is because your company has opted to allow Cyclescheme to have ownership to avoid having any further admin. Great deal for cyclescheme I wouldn't worry about it. 0
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Seems the small print needs a good read. Not sure i would have signed up if i knew that my compayn don't own the bike, even though they paid for it!
Pretty disgusting that cyclescheme get the £50+ vat for doing nothing! [and i assume they also get a % from the LBS that sold the bike!]0 -
I've got to say those cyclescheme people must be taking a lot of money. Talking to the LBS they say over a third of bikes sold go through that system, and they take 10% for carrying out a process. Not a bad business to be in with no or very little risk.0
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Can't really blame Cyclescheme, they saw a niche and got in there.0
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Can't see the cycle scheme lasting much longer so I hope they have another revenue stream.Scottish and British...and a bit French0
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bells0 wrote:Pretty disgusting that cyclescheme get the £50+ vat for doing nothing! [and i assume they also get a % from the LBS that sold the bike!]
Most likely they've paid the company for the bike (sort of like debt collectors do, buying the debt). I doub they're gettign money for nothing.
These cycle schemes are great but they're not as simple as people think, I'm surprised more people don't get caught out with the fair value thing, it generally works but it's more or less on the honour system...Uncompromising extremist0
