New "Cycle to work" esque scheme??

mcj78

Hi all, not sure where to post this really - here'll do

Just been speaking to a bike shop employee recently re. CTW & how the retailers are charged a 10% admin fee which (understandably) they sometimes pass onto the purchaser, which obviously reduces the amount of savings you end up with & sometimes barely makes the scheme worthwhile at all. He then mentioned a new scheme soon to be announced, in which the stores themselves administer the transactions resulting in less overheads & no 10% "administration fee" to pass on, anyone heard anything about this - sorry if it's already been covered somewhere else, not been on here much recently!

Cheers,
John

pdw

"Cycle to work" is the name of the government tax break that allows employers to make bikes available to employees without it being treated as a taxable benefit. There's nothing in it that requires retailers to pay an administration fee.

There are a number of commercial scheme operators, such as Cyclescheme, that implement a voucher-based system that supposedly makes it easier for employers to adopt the scheme, and charge an admin fee to the retailers for doing so.

It has always been possible for companies to administer the scheme internally, and avoid giving 10% to a third party, and allowing free choice of retailers.

I don't know if what you're referring to is some new collaboration of bike shops. Most of the big online retailers have been touting their own schemes for a while (e.g. http://www.wiggle.co.uk/h/option/cycletowork) , presumably because their margins don't allow them to pay 10% to the likes of Cyclescheme.

leodis75

Yeah pretty much the same as is now. I have been charged £68 by CS for admin fee to start the scheme, I wasnt aware of it and now pretty much if I buy at the 25% after 12 months will be £65 worse off by using the scheme or 7% at £63 to extend loan period and make a saving of £170 but not own the bike for 4 years, then again they will never know if I have sold it after 12 months and I will have nothing else to pay top take ownership of it except the 7% extension.

mcj78

pdw wrote:

It has always been possible for companies to administer the scheme internally, and avoid giving 10% to a third party, and allowing free choice of retailers.

Yep, problem being the smaller retailers who tend to offer good deals and/or good discounts on old stock rarely have the requisite spare time to deal with administering their own scheme - much easier for them to deal with cyclescheme & just bung 10% onto the cost, as i've seen dozens of times over the last couple of years when enquiring about cyclescheme in small independant retailers.

pdw wrote:

I don't know if what you're referring to is some new collaboration of bike shops. Most of the big online retailers have been touting their own schemes for a while (e.g. http://www.wiggle.co.uk/h/option/cycletowork) , presumably because their margins don't allow them to pay 10% to the likes of Cyclescheme.

From the sound of it, it might be - not heard anything else about it, but it does seem to be aimed at small independant retailers who're currently just passing the 10% charge onto the customer & possibly losing business through it - I know i've had to think again a few times when the £950 bike turns into £1095 with the 10% admin charge added.

I guess it'll come out sooner or or later :?

MarksMintness

When I went to Planet X in November they said they have to pass on the 10% charge as well. For that reason I don't think they really like to do it, because it doesn't work out as good value.
I have a Cyclescheme bike myself, and I've just entered the 30 month extended use period which cost me £57 one off fee.

pdw

mcj78 wrote:

pdw wrote:

It has always been possible for companies to administer the scheme internally, and avoid giving 10% to a third party, and allowing free choice of retailers.

Yep, problem being the smaller retailers who tend to offer good deals and/or good discounts on old stock rarely have the requisite spare time to deal with administering their own scheme - much easier for them to deal with cyclescheme & just bung 10% onto the cost, as i've seen dozens of times over the last couple of years when enquiring about cyclescheme in small independant retailers.

The problem is more with employers believing that C2W is difficult to administer and that they need to do it through some 3rd party. From the retailer's point of view, a self-administered C2W purchase is just a normal cash transaction.

Even if bike shops do set up their own scheme, you still need to persuade your employer to use it.

The Rookie

mcj78 wrote:

I know i've had to think again a few times when the £950 bike turns into £1095 with the 10% admin charge added.

That's about a 15% admin fee, unless you meant £1045!

Simon

mcj78

The Beginner wrote:

mcj78 wrote:

I know i've had to think again a few times when the £950 bike turns into £1095 with the 10% admin charge added.

That's about a 15% admin fee, unless you meant £1045!

Simon

Yep - my bad :oops:

TBH, with all the recent changes to cyclescheme making it less of a bargain & including the 10% some shops add on, i'm thinking it's less hassle to do a bit of looking around & picking up a mint 2nd hand bike - gonna wait until I find out more about this new scheme though, just in case it's any good!

j

The Rookie

You'll be stuck with whichever scheme your employer chooses!

Simon

mcj78

The Beginner wrote:

You'll be stuck with whichever scheme your employer chooses!

Simon

Yeah they're already doing Cyclescheme, used it before but with recent changes to final value fee etc. i'd only be saving around £50-£100 on a £1k bike... waiting to see how this new proposed scheme works out before I commit the £60 monthly payment to Shell V-Power instead & keep my road bike for dry weekends as i'm fed up with it getting wrecked with the shitty weather (joke - it gets used all year round but my drivetrain, brakes & wheels are becoming a disgrace and i'm fed-up replacing things!)

J

benpinnick

The new scheme is called workriders, and it launches in march. There's no 10% so you can buy any bike. You have to pay £25 upfront to get a bike, but that's deducted off the final fee, or converted to extend the hire agreement. Which ever you prefer.

mcj78

benpinnick wrote:

The new scheme is called workriders, and it launches in march. There's no 10% so you can buy any bike. You have to pay £25 upfront to get a bike, but that's deducted off the final fee, or converted to extend the hire agreement. Which ever you prefer.

Ahaaa! I wasn't making it up - do you have any other details on it, would employers have to sign up to this scheme or is it cleverer than that?

*edit - just found this http://www.workriders.co.uk/

Cheers!
J