Cyclescheme

tom_g92

We have been told there is a chance of us being
Made redundant in about 5-6 month. Is there any point me applying to cyclescheme?

Kerguelen

Not really. If you left your employer (for any reason) the remaining balance would become payable immediately.

tom_g92

But still that would be cheaper than paying for a £950 bike outright ?

Wirral_paul

You could always ask about buying via the scheme on a short term basis - ie 6 months. You'll benefit by the tax breaks over that term but may be forced to purchase the bike via its final value fee.

Personally i'd suggest if you have the cash, look for a bargain online with a 2011 bike etc unless you're a 40% tax payer. The savings arent very good for a 20% tax payer anymore (I work in Finance and have a £2k Moda Stretto on the Cycle to Work scheme - expect to save around £350 - £400 overall)

tom_g92

I'm a full time uni student and have a Part time contract hours job, I don't pay much tax at all as I don't earn enough, would you say the scheme
Isn't worth it for me?

t5nel

tom_g92 wrote:

I'm a full time uni student and have a Part time contract hours job, I don't pay much tax at all as I don't earn enough, would you say the scheme
Isn't worth it for me?

I'm not an accountant but...I would be really suprised if it is worth it for you!!!

The way it works is that the money is taken from your gross salary. So if there are very few deductions (tax NI etc) and these are a low percent of what you earn then I am almost certain you will get a better deal from the sales of 2011 bikes.

Don't forget there is a final value payment as well and getting a discount for use with cyclescheme is very difficult as retailers do not get given the full value of the voucher.

You would be better of getting a 0% credit card, buying a 2011 sale bike on this (then cutting up the card!!) and paying it off over the 6 months year or whatever.

Tim

tom_g92

Thanks for the advice!

anto164

tom_g92 wrote:

I'm a full time uni student and have a Part time contract hours job, I don't pay much tax at all as I don't earn enough, would you say the scheme
Isn't worth it for me?

If the payments push your wage under the national average wage (and with the kind of job you're describing, then that's entirely possible) then it's a definate NO.

hulla the hulla

Plus most retailers who participate in the scheme do not discount anywhere near as much, if at all so you pay top dollar for the bike in the first place ! And its no where near as tax efficient as it used to be.

Well done UK government for back tracking and screwing up another potentially valuable (in both health and environmental terms) scheme yet again. Anyone would think they are trying to force us into our cars.

Wait.... cars use fuel....there's tax on fuel....... :roll: