cyclescheme - top up payments

gonzalez gomez

I am aware the max voucher value on c/scheme is £1k however my lbs will let me make a top up of £200 for bike i want. the extra £200 will be outside the c/s. I know this not strictly within the rules, however all being well I don't expect to change jobs etc before the 12 months is up I don't think it will be a problem.

Has anyone experienced any issues by topping up like this??

zippypablo

If the bike shop is happy to do it then it's fine. Not strictly within the rules but who checks? I've known a few people who have done it without any issues.

Scrumple

just do it.

everyone does!!

springtide9

Scrumple wrote:

just do it.
everyone does!!

+1

amaferanga

The maximum voucher value with Cyclescheme isn't £1000. Its only £1000 for employers that don't have a consumer credit licence.

owenlars

There is nothing in the rules against topping up, I have done it, it is a matter for the person who owns the bike during the hire period. If you buy a £1200 bike yoiu can only fund £1000 through the scheme so your company owns 10/12 of the bike and you own 2/12 of the bike. If your company and you are happy with this position no problem. Some of the providers of schemes to companies may not allow this for administrative reasons.

paulbox

My understanding is that most bike shops will let you do it, however, your employer or the administration company own the whole bike, not 10/12's (in this case) of it.

However, as has been said above, loads of people do it, I bought my Anthem using a £1k voucher to pay half of it.

lucan

How can the company own the whole bike if they haven't bought it all?

springtide9

The company (not the user) buys the bike - but lease/hire it back to you for the bike scheme duration.

After the scheme duration, the company can sell you the bike - for an extra payment used to be common until the changed the rules.
Now, the company has the option to sell you the bike at the fair market value at the end of the hire duration - where guidelines are listed on the C2W website for cost (based on a % of the purchased price). Some companies allow you to use the 'bike free of charge' for an extended duration... until the bike devalues to the point it has negligible value - the idea being that you don't have to buy the bike at the end of the hire term (read, loophole)

The bottom line is that the rules are the rules and most if not all companies running the scheme have no interest in the bike whatsoever once the hire is setup. As long as they get their payments... they are happy. It pays for employers to take part as they save money on employer NI.
I can't see this changing unless the government make it a requirement for companies to do some kind of checking - which I guess is unlikely as most would then just drop the scheme (as it would cost them money to manage the scheme)

In terms of paying on top... I'm not aware of any requirement to fit replacement parts to the bike of the same value or spec. I don't think it's mentioned as no one is really interested or really wants to have this discussion (read - open a can of worms)

Bottom line is that it's a benefit to encourage people to cycle in order to reduce traffic and keep themselves healthy (hence reduce medical costs to the NHS).

IMO - the rules are mainly there to stop people buying a new bike in order to sell it for a nice profit. Basically to stop people taking the p***.

Wobblehead

Just spent £2300 on a scheme

£300 deposit
£1000 cash
£1000 voucher.

Got a good employer that knows also and is happy

Just need a lbs that will do it