Cycle 2 Work Scheme

stoneb09

Hello there,

Just went into Halfords to buy a Carrera Virago (Insert Snobbery Comments Here) and they said you can buy a ride it membership and save £100. They also asked if my employer does a cycle to work scheme (I'm at uni so said no) but my mum works for the NHS and said she could get it for me.

I have had a look online and not entirely sure how to proceed. I understand you pay certain amount per month which reduces the amount of tax paid and thus the savings, meaning I can get the bike for £680 as a pose to £1000.

My question is - How do I proceed? Do I need her to check her trust does it? If so then what?

Regards, Brad

Twelly

Be careful - Cycle2Work is just that - a cycling to work scheme. If your mum starts using her employer to get you a bike which neither of you have any intention of cycling to her work on then you could be in trouble. Many people do take advantage of the scheme and get away with it but the more people do, the less likely the scheme is to continue in the future.

Officially, the employer buys the bike then hires it to you for a monthly deduction of your (your mums) salary for 12 months. It is then up to the employer whether they sell it to you at market value or let you keep it for no extra cost.

Google 'cycle to work'.

stoneb09

TwellySmat wrote:

Be careful - Cycle2Work is just that - a cycling to work scheme. If your mum starts using her employer to get you a bike which neither of you have any intention of cycling to her work on then you could be in trouble. Many people do take advantage of the scheme and get away with it but the more people do, the less likely the scheme is to continue in the future.

Officially, the employer buys the bike then hires it to you for a monthly deduction of your (your mums) salary for 12 months. It is then up to the employer whether they sell it to you at market value or let you keep it for no extra cost.

Google 'cycle to work'.

That's the bit I'm a bit weary about... If she works for the NHS, how much will they charge for her to keep it at the end? If its going to be say £50 a month, that's £600 and then if they charge 20% of the final market value, that would be £600 +£200 meaning the bike is still going to cost £800??

Twelly

It's completely up to the employer what they do at the end. I'm sure most will be reasonable and just say 'the bike is yours' at the end (as mine did). If they do say that, get it in writing.

But as I said, you are breaking rules getting your mum to get a bike on the scheme for you to use. It is a tax benefit, given by HMRC so if they do find out I'm sure they will have no problem with charging you for the full amount.

You can get discount at Halfords by joining British Cycling I think. The bikes are already very good value so with that discount, you are laughing. If you want C2W, get a job that offers it would be my advice.

stoneb09

Have just joined the British cycling and got a Ride membership. Save 10% on my bike anyway so not too bad!

snaphappyspen

I am on my second cycle to work scheme, and i have never done that! Mainly due to lack of bike storage facilities at work. The people i work with know i dont cycle to work and arent bothered. They dont check up on you or anything. My younger brother has one through my mums work and thats gone fine!