Which cycle to work scheme?
kn0bby
Posts: 78
Hi Guys,
Sorry if this has been covered before but I did some seaches and nothing came up.
Basically I'm advising my company on which scheme to sign up for and I'm after some other peoples advice.
I see there are the following along with a few others.
http://www.cyclescheme.co.uk/
http://www.bike2workscheme.co.uk
Do we even have to use one of these schemes or can our company run it off our own backs?
Thanks
Knobby.
Sorry if this has been covered before but I did some seaches and nothing came up.
Basically I'm advising my company on which scheme to sign up for and I'm after some other peoples advice.
I see there are the following along with a few others.
http://www.cyclescheme.co.uk/
http://www.bike2workscheme.co.uk
Do we even have to use one of these schemes or can our company run it off our own backs?
Thanks
Knobby.
0
Comments
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You can do it in-house, and it is much better for the company to do their own scheme. Cyclescheme charge the bike shops 10% so you can't get a discount price, you tend to have to pay RRP, or at many you have to pay an extra fee to the shop (£50, £100, 12% etc).
Cyclescheme try to scare the employer to GIVE them the bikes at the end of the scheme, by exaggerating the issues with HMRC (which are really quite straightforward).
Cyclescheme then ask the employee for £250 (on a £1k bike) to take ownership, or a £70 "deposit" so Cyclescheme retain the bike for 31 more months.
The company just needs to pay the shop for the employees bike, do a salary sacrifice for the employee to cover rental payments, at the end, GIVE the bike to the employee, and declare a "benefit in kind" of £250 (on a 1 year old £1k bike) so they are taxed at 20%, 40% or 50% (£50, £100 or £125) appropriate to their tax bracket.
Cyclescheme and the like don't organise the salary sacrifice, the employer does this and this is the main admin required. Other than that download some agreement forms (from the likes of Evans or Wiggle) and use them as a template for your in-house forms.
If your company does it themselves then employees will get the cheapest deal and the greatest choice of bikes and shops.0 -
Perfect, just what I wanted to hear. We are looking at doing it internally now. It's just a case of whether the company want to outlay the purchase price of the bike.
Thanks.0 -
kn0bby wrote:Perfect, just what I wanted to hear. We are looking at doing it internally now. It's just a case of whether the company want to outlay the purchase price of the bike.
Thanks.
See http://www.dft.gov.uk/pgr/sustainable/c ... df/518054/0 -
My company handles it themselves, it works out much better and we have negotiated a 20% reduction with a local bike shop on RRP for most makes. It is really straightforward, we have used some of the extra savings to insure the bikes on the company insurance scheme, bikes will be stolen so this is important.0
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El Vino wrote:My company handles it themselves, it works out much better and we have negotiated a 20% reduction with a local bike shop on RRP for most makes. It is really straightforward, we have used some of the extra savings to insure the bikes on the company insurance scheme, bikes will be stolen so this is important.0