Is cycle to work scheme still worth it?
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I was practically begging our company to run their own version of C2W for the last 5 years. Kept on getting turned down.
They have recently just introduced a scheme where they're offering an additional £200 per month for anyone willing to give up their allocated parking space. As I've not driven in since I started, I'm taking that now instead. I'll take an additional £2,400 per year instead of a £1,000 bike, works for me.
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The Northern Monkey wrote:So is the statement on the bikeradar article I posted earlier incorrect then?
No its correct. But it assumes a low tax rate and high FMV transfer cost. To find out what you would actually save its simple maths:
(Value of bike * (proportion of salary lost to tax NIC)) + final payment (or contract extension cost).
To figure out your proportion of salary lost to tax/NIC go to listentotaxman.com, input your gross salary per year into the gross salary box and hit calculate. Then do this equation:
The value that shows in the wage summary as 'Total Deductions' for a year / Gross Salary * 100.A Flock of Birds
+ some other bikes.0 -
Cyclescheme's calculator seems to be broken and cannot account for 50% tax rate. Its showing the same savings for £68K as for £168K, which cannot be right. You stand to make extra savings if you are in the £100-120K mark. I think I may therefore have under estimated my savings.0
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benpinnick wrote:GT_Dave wrote:I dont have the option of the cycle to work scheme as the Army havent adopted it although they do want to encourage soldiers to cycle to work rather than driving.
One massive bonus that I can see with this scheme is that you dont have to persuade the wife to let you spend a grand on what she sees as a "push bike" which is an experience that i have just had to go through!!! :roll:
Cycle to work scheme all the way!!!!!
The Army wont do it as they already pay you to ride to work... Probably a better deal if you actually do it!
How do you mean? :?:0 -
I believe the armed forces don't do cycle to work as they have a seperate mileage based allowance for cycling to the base.A Flock of Birds
+ some other bikes.0 -
C2w still very good where I work. The scheme for a bike that is £500+ is done over 6 years. Repayments made over 3 years with further 3 years loan of the bike payment free. At the end of the 6 years the bike is yours without any tax or VAT implications as HMRC believe the value of the bike at year 6 is negligible.
The down side is a new bike only every 6 years. You can take ownership of the bike at year 3 if you want to start a new C2W but you then have to pay tax and VAT on the residual market value of the bike at the time (12% of original value so max is tax and vat on £120)0 -
The cycle to work scheme just seems to get more and more complicated. Found this post the other day which lays it out quite simply - although it still says that every scheme varies!
http://www.ridein.co.uk/how-the-cycle-to-work-scheme-usually-works/
Think every case is different in terms of your company and your own tax circumstances. Don't know why the government couldn't have set it up more simple but hey ho.0 -
Also, in terms of a govt run scheme to encourage people to cycle, it seems a bit silly that the wealthiest get the biggest discount. AS diy says, no reason why the 50% tax payers (very wealthy compared to the vast majority of the UK) wouldn't want to take advantage of it, but it would be better to take VAT off bikes. Encouraging people to cycle for leisure is a good thing too, might not have the same 'cars off roads' effect as cycle commuting, but it still has the health benefits, which saves the govt money in the long run.0
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njee20 wrote:Hang on? You earn that sort of money, and live in Bracknell!? :-)
there are some quite nice bits of Bracknell and having really nice trails a 5 minute ride away also goes a way to improving it in my eyes.Whether you're a king or a little street sweeper, sooner or later you'll dance with the reaper.
Cube Curve 2009
Giant Anthem X4
FCN=60 -
If I was on >£150k I'd be living in a very nice house in they Surrey Hills or something, or at the very least Windlesham or somewhere, rather than Bracknell!You stand to make extra savings if you are in the £100-120K mark. I think I may therefore have under estimated my savings.
Why on earth do you ride a Boardman and a 5 year old Stumpy? Surely it should be a Di2 equipped wonder bike with Lightweights and a full XX equipped S-Works!
I worry about some folks priorities :-)0 -
My stumpy is really a bitsa the only stumpy bit is the frame. I built it and I can't be bothered to build a new one. My boardman was cheap so I bought it. Like I said earlier it doesn't matter how much money you make. Not wanting to waste money is in your dna. Also if you are on £40K per year then someone on £10k will think you are loaded just as some people can't understand how people can live on less than £100K. Its all about perspective.
lastly - not much point in living in surrey, if you work in Reading.njee20 wrote:If I was on >£150k I'd be living in a very nice house in they Surrey Hills or something
That might cost more than you think
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I'm trying to get my wife's employers to look at putting a C2W scheme in place but as a relatively small employer (<40 employees) I'm not expecting to get much response from them but I thought it was worth asking.
With that in mind, what's the next best alternative? The bikes we're looking at would be sub-£500 plus any associated kit - panniers, waterproofs, lighting, etc.
With C2W and the new changes to final value fee / voucher VAT, is it for the total value of the hire (i.e. including all the kit) or just the bike portion of the hire? I'm guessing it's the total value, but thought I'd ask
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Got my end of scheme letter through. Two options:
Free bike transfer for the tax on £250
or
pay £90 to have it collected.
No option to extend the scheme.
2012 scheme leaflet is saying its over 24 month period. Even as a additional rate tax payer (50%) I reckon I have saved not much more than £200 comparing peak season prices with sale prices (which is when I would typically buy).
My £1000 voucher cost me £469 + £120 = £5890 -
Not wanting to waste money is in your dna.
How is a nicer bike a waste? BURN THE HEATHEN!lastly - not much point in living in surrey, if you work in Reading.
I'd live somwhere like Windlesham!
Back OT... so it's been worth it for you by the sounds of it, for 'average earners' less so.0 -
Yep I would say timing is everything. You want your scheme to coincide with CY-end not tax year end0
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one of the lads at work got his final settlement figure last month and after adding up all that he has paid and including the fvp he has paid more than the rrp for his bike...he is not happy0
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appy wrote:one of the lads at work got his final settlement figure last month and after adding up all that he has paid and including the fvp he has paid more than the rrp for his bike...he is not happy
Not sure how its more he sure he worked it out right and calculated based on the tax/ni savings, but extend the lease on the scheme, then the value is a lot lower.0 -
appy I'm guessing he has not taken in to account that the deductions/sacrifice is off his GROSS earnings. By that measure my 1k voucher cost 1200 quid0
