cycle to work scheme?

rhyko7

can someone please explain this scheme to me?
i ride to work when its not raining and may be able to get a new bike on this scheme, but got a bit confused on the website.
i want to buy a Giant Reign X (for DH not commuting), is it possible to do this on the cycle scheme and how much would i save?

RevellRider

The simple way is you get £1000 to spend on a bike, you don't pay any VAT on the the bike and the payment is taken from your wages before the tax and NI goes out. The amount you save on the bike depends on your tax bracket but you could save upto 49% of the bikes value. At the end of the scheme you have the option to buy the bike from your employer for a small fee.

thebikechain

i want to buy a Giant Reign X (for DH not commuting)

Umm perhaps the scheme is not for you...[/quote]

Rich Hcp

You don't have to ride the bike to work.

With the saving its worth having.

I'll never take my bikes to work, they're worth more than some of the cars!

They don't check, so go for it.

RevellRider

Cyclist have clocked on to the fact that the cycle to work scheme is an easy way to get a cheap bike. What you have to remember is there is usually a £1000 limit on bikes (some shops will let you top this up) and you don't actually own the bike. The company you work for could turn around at the end and ask for the bike back, so all those extras you've put on the bike or the extra few hundred quid you've paid to get a better model could be lost in an instant.

Daz555

RevellRider wrote:

The company you work for could turn around at the end and ask for the bike back, so all those extras you've put on the bike or the extra few hundred quid you've paid to get a better model could be lost in an instant.

That is unnecessary scaremongering in my opinion. I have not come across one C2W horror story.

Salary sacrifice schemes like C2W are an excellent way to save a few quid in tax and I would encourage anyone to take up the chance if it fits their requirements.

RevellRider

It's better he knows the full facts if he wants a more expensive bike. Most people don't realise that if the bike is stolen, you lose your job through either redundancy or dismissal that you'll still have to pay the agreement off, but you won't get the tax breaks.

Daz555

http://www.cyclescheme.co.uk/employee,faqs.htm

I don't believe for a minute that "most people" do not know how the scheme works. I must know 20 people who have had bikes from various employers in recent years and to a man they know what it is all about.

Very little in life is risk free of course - cyclescheme/C2W included but this does not change the fact that the scheme is an excellent way to get a bike at huge discount. C2W is also an exceptionally low risk proposition for the vast majority of individuals who are able to participate.

thebikechain

You don't have to ride the bike to work.

Yes you do. The clue is here: (from Cyclescheme FAQ Page)

Employees should use the bike mainly for commuting to and, if relevant, between work places (at least 50% of the bike’s use should be for work purposes). However, the bike can also be used for non-work purposes and there is no need for employers to monitor individual usage or for employees to keep a mileage log. Please note that employees can not claim business mileage allowance with a bike obtained under the scheme as the bike belongs to the employer.

I didn't dispute the fact you can't ride it for leisure, in fact we encourage our customers to quite enthusiastically but the OP stated explicitly he was intending it for use as a DH bike NOT commuting.

Just to clarify.

And trust me... they do check.

nickfrog

Just to clarify. The "saving" means that other tax payers who can't use the scheme (self-employed people for instance) fiscally subsidise those who do.

Rich Hcp

thebikechain wrote:

You don't have to ride the bike to work.

Yes you do. The clue is here: (from Cyclescheme FAQ Page)

Employees should use the bike mainly for commuting to and, if relevant, between work places (at least 50% of the bike’s use should be for work purposes). However, the bike can also be used for non-work purposes and there is no need for employers to monitor individual usage or for employees to keep a mileage log. Please note that employees can not claim business mileage allowance with a bike obtained under the scheme as the bike belongs to the employer.

I didn't dispute the fact you can't ride it for leisure, in fact we encourage our customers to quite enthusiastically but the OP stated explicitly he was intending it for use as a DH bike NOT commuting.

Just to clarify.

And trust me... they do check.

They never have where I work and I have not heard of a single case where they have

The only time people have had to pay back is when they leave the job.

That is clear in all the paperwork

More scaremongering

thebikechain

They never have where I work and I have not heard of a single case where they have

Thanks for your blanket coverage of ALL workplaces in the UK. Useful insight.

Seeing as we have first hand experience of the scheme on a day to day basis then we are fully aware of the guidelines and procedures of it and indeed the random spot checks carried out to make sure the scheme is being adopted correctly by companies and employees.

You are aware mis application of the scheme can be treated as tax fraud aren't you? Cause that is basically what you are doing. Willful deception to gain a tax break is a thing frowned upon by HMRC.

If you have no problem with this then please do carry on.

That is clear in all the paperwork

as are all the rules of the scheme - you can't pick and choose.

Seb Spiers

thebikechain wrote:

They never have where I work and I have not heard of a single case where they have

Thanks for your blanket coverage of ALL workplaces in the UK. Useful insight.

Seeing as we have first hand experience of the scheme on a day to day basis then we are fully aware of the guidelines and procedures of it and indeed the random spot checks carried out to make sure the scheme is being adopted correctly by companies and employees.

You are aware mis application of the scheme can be treated as tax fraud aren't you? Cause that is basically what you are doing. Willful deception to gain a tax break is a thing frowned upon by HMRC.

If you have no problem with this then please do carry on.

That is clear in all the paperwork

as are all the rules of the scheme - you can't pick and choose.

Jesus Chist someone needs a box of tampax

Your employer couldn't give a toss if you use the bike to cycle to work or not, the company benefits from the tax break the same as you do.

I will be using my bike to cycle to work, but I know a lot of people don't, simply because they live too far away.

No one could care less if you use it to cycle to work or not.

In respect of a bike over the value of £1000, you're not supposed to be allowed to top the bike value up with you own cash because its legally owned by the company. HOWEVER if you do, I can't see any great risk, the company will never want the bikes back and will sell it to you or a very small value (£1 or something stupid). No manager or director wants the hassle of having to find a home for 30 odd reclaimed second hand bikes.

thebikechain

No manager or director wants the hassle of having to find a home for 30 odd reclaimed second hand bikes

Why not?

Perfectly reasonable to run a fleet of bikes for staff use. Especially for large campus based companies where staff may need to work between buildings, like RBS etc.

Jesus Chist someone needs a box of tampax

not at all. i prefer Lil-Lets.

sore_tint

Most companies never check, huh? Mine did and I got 'busted' for never using the bike to commute (usually drive) complete with a warning and threatened with further disciplinary action if I didn't start using the bike as intended or returned it to the company. They were kind enough to keep it in house away from HMRC but it was an eye-opener. Use the scheme what its for people or run the risk of ruining it for everyone. You may scoff...

Seb Spiers

sore_tint wrote:

Most companies never check, huh? Mine did and I got 'busted' for never using the bike to commute (usually drive) complete with a warning and threatened with further disciplinary action if I didn't start using the bike as intended or returned it to the company. They were kind enough to keep it in house away from HMRC but it was an eye-opener. Use the scheme what its for people or run the risk of ruining it for everyone. You may scoff...

strange how you've just signed up and this is your first post!

sore_tint

strange how you've just signed up and this is your first post!

Is that what it says? Been on here for a few years, albeit sporadically. Pertinent topic to me.

EDIT:

Joined: 18 Jul 2005

Seb Spiers

Ah ok, I apologise, just strange that it was your first post out of the blue!!

Daz555

sore_tint wrote:

Most companies never check, huh? Mine did and I got 'busted' for never using the bike to commute (usually drive) complete with a warning and threatened with further disciplinary action if I didn't start using the bike as intended or returned it to the company. They were kind enough to keep it in house away from HMRC but it was an eye-opener. Use the scheme what its for people or run the risk of ruining it for everyone. You may scoff...

Most companies never check.
You were unlucky.
Blimey, your employers sound like twats.

sore_tint

Blimey, your employers sound like twats.

WHich I thought at first, too; but with time to think about it and see their point, I was taking the piss out them and the scheme. And its their right to check, so just beware if you're taking the piss also, is all I would say.

rmj555

thebikechain wrote:

You don't have to ride the bike to work.

Yes you do. The clue is here: (from Cyclescheme FAQ Page)

Employees should use the bike mainly for commuting to and, if relevant, between work places (at least 50% of the bike’s use should be for work purposes). However, the bike can also be used for non-work purposes and there is no need for employers to monitor individual usage or for employees to keep a mileage log. Please note that employees can not claim business mileage allowance with a bike obtained under the scheme as the bike belongs to the employer.

I didn't dispute the fact you can't ride it for leisure, in fact we encourage our customers to quite enthusiastically but the OP stated explicitly he was intending it for use as a DH bike NOT commuting.

Just to clarify.

And trust me... they do check.

do you work for the cycle to work scheme police?

i work for the local council and they dont check. got told that by a few people and the bike shop owners :roll:

fanatic278

As far as I'm aware, it's not up to your employer to audit your tax status. They pay your salary and remove tax at source, but it's up to the individual to comply with the law. Your employer shouldn't be doing the HMRC's policing for them. If they are, then they're overstepping the mark and being big fat jobsworths.

The HMRC and police have better things to do than check on people cycling to work. They can make start looking at our MPs!

metalmonkey

When I got my bike through the cycle to work scheme, I asked if they ever check and they were like no. My boss who counter signed the form as a manager has to sign it as well has never had any problems and there are loads of that do have bike through the scheme.

I took $1000 voucher out which works out to be that I pay about $600 for the bike, which is awesome. I try to cycle as much as possiable casue its really helping my fitness but thats my choice. Its a hire scheme so they can't give you an exact price of what the valaution fee will be but I was told its no more than 5%. Also its really dirty when you have done, then % you pay back is less Shouldn't be a problem really! Yopu can pay more over the top of voucher value, but I got the bike I wanted within the voucher but another guy I work with paid more. Just make sure the bike is insured as well.

When I was speaking to the person who manges the scheme I was like so you want sweaty shorts back then eh

Dude just get the bike, its worked out to be a sweet deal for me.

The only negative thing about the deal is that I pay slightly less student loan back a month, but I think I will get over that.

*my pound sign is broke hence $ (no I'm not American either)

Daz555

sore_tint wrote:

WHich I thought at first, too; but with time to think about it and see their point, I was taking the wee-wee out them and the scheme. .

You are not hurting your employer at all.

"Benefits To Employers

Running a Cycle2Work scheme incurs no direct costs for employers who also avoid the NI contribution of 12.8% on the value salary sacrificed and achieve the benefits of a green transport or environmental compliance plan. Both parties benefit from the employee being fitter and healthier, and the scheme contributes to a recruitment and retention programme and helps combat absenteeism."

Makes no odds to them if you ride your bike or not.

kris998

Got my Orange P7 and Giant Trance through the cycle to work scheme. Fantastic, saved me loads and NEVER been asked for proof of cycling to work. Infact the limit is being raised to £3000 (how many people are really going to cycle to work on a £3000 bike?)

The benefits for the company is that fact your out cycling (to work OR at weekends etc).

Think a few people who posted are overeacting slightly.....

jonnyc2420

where did you hear of the limit bieng raised to £3000? is that all c2w schemes?

Daz555

jonnyc2420 wrote:

where did you hear of the limit bieng raised to £3000? is that all c2w schemes?

Still a grand where I work.

jonnyc2420

probably same here too (somerset county council) - wont reach for the orange 5 brochures yet then.......

kris998

Ours raised in March, its now £3000. When requesting the voucher the new limits now on the website.

supersonic

I have heard of some checks being done, but not heard of anyone bing caught.

Also heard of people getting stung at the end when they buy it off the company.