New cyclescheme offer - they rent you the bike for 4 years

craker

Apologies if I've missed a thread on this one...

I've been passed an email from Cyclescheme offering to rent you your cycle to work bike from the period you finish paying your employer for it for another four years. The cost of this to you is - I think - the 5 year valuation of your bike (7% of purchase for a £1000 bike).

http://emails.cyclescheme.co.uk/files/mvflowchart.pdf

Can anyone give me some feedback on their interpretation of this email?
* Does your employer have to sign up to this version of cyclescheme's process?
* Is there additional bureaucracy required for my employer?
* Is this service provided free by Cyclescheme?

Have I missed anything? My employer has initially said no because of the extra paperwork burden.

fossyant

This seems to be what's coming out since the Inland Revenue's ruling about the Market Value - i.e. Cyclescheme take over and let you have it rent free, until the Market Value is much less. This also takes it off the employer's hands.

Phate

Looks like good news and don't understand an employer saying no due to the extra admin! Surley the admin for transferring ownership is the same regardless of it being to an employee or to cyclescheme! In fact by transferring the ownership to cyclescheme then surley they will avoid the additional admin of the final payment, tax, NI and VAT calculations??

sophidog

My, i started to get excited with this one, but looking at the flowchart, your employer has to have been signed up to the Cycle to Work scheme. The Department for Work & Pensions isn't and has no intention of joining. That's us civil servants paying through the nose then. By the way, not all of us civil servs have large salaries.......... They do offer a 'loan' but the savings don't stand comparison with the proper scheme. Ironic really that a government initiative isn't available to those who serve the government.

neiltb

that'll teach you for getting involved with politicians.

Lancslad

neiltb wrote:

that'll teach you for getting involved with politicians.

+1

The Rookie

Still you have your much publicied 'gold plated' pension to fall back on!

Re a gov't department not adopting a C2W, why not talk to your MP?

Simon

Phate

Just off the phone to the guy setting up Cyclescheme for our work and they have decided not to offer us the option to transfer ownership to Cyclescheme what they have said though is the following with regards to calculating fair market value!

25% if it's in perfect mint condition, washed and dried after every ride...
20% if it's in good nick
15 % if it has good wear and tear (ridden through the elements, etc)
10 % If it's been through the paces(ridden proper, through winter all year long, in salt, etc...)

Just an extra incentive to get up and cycle on those wet winter mornings

Simon the Pieman

In the Guardian Money bit today there was an article on losing child benefit. They suggested that if you were near the threshold then do a salary sacrifice scheme. They referred to the cycle to work scheme and said you can do this if you do not even want to cycle as you could flog the bike.

I did not think you could flog it as how do you do the valuation thing or does the valuation thing not happen?

barrybarryr

Phate wrote:

Just off the phone to the guy setting up Cyclescheme for our work and they have decided not to offer us the option to transfer ownership to Cyclescheme what they have said though is the following with regards to calculating fair market value!

25% if it's in perfect mint condition, washed and dried after every ride...
20% if it's in good nick
15 % if it has good wear and tear (ridden through the elements, etc)
10 % If it's been through the paces(ridden proper, through winter all year long, in salt, etc...)

Just an extra incentive to get up and cycle on those wet winter mornings

My work don't ask what bike you buy. They just give you a voucher for an amount but take the condition of the bike into account.

I'm going to get a battered dented broken thing at the end of the year stick a bike company sticker on it and claim that was the bike I bought.

They'd never know!

Mr Pedersen

Mr Si -
Your employer doesn't have to sign up to this but the default is that Cyclescheme will take care of 'the final payment' unless told so otherwise by the employer.
Once the bike is signed over to Cyclescheme (done with none or very little work) there is no more bureaucracy for the employer.
This service is offered free by Cyclescheme.
If you want to take legal ownership of the cycle before the four years is up you can by contacting Cyclescheme but you may be charged an additional fee.

Hope this helps?