Cycle2work scheme - accesories only

Garryboy

Interesting if true.


www.bikebiz.com/news/read/hmrc-clarifie ... ent/014432


Wonder if that includes a groupset or wheels? Not safe to cycle without either

passout

Interesting, might be tempted.

rolf_f

Garryboy wrote:

Interesting if true.


http://www.bikebiz.com/news/read/hmrc-c ... ent/014432


Wonder if that includes a groupset or wheels? Not safe to cycle without either

Good spot - and no! You can probably find a shop that will do you (dodgily) a groupset and wheels anyway but it won't be any more legit under the new rules.

As a guide, helmets, lights (including dynamos), mirrors, mudguards, cycle clips and dress guards, panniers, locks, bells, pumps, puncture repair kits, multi-tools, reflective clothing and spoke reflectors are all permitted.

Anyone going to go for £100 of spoke reflectors?

smidsy

Surely a ne £1000 set of wheels that let you accelerate away from trouble quicker or enable you to stop quicker to avoid hitting things ARE safety equiment :-)

rolf_f

smidsy wrote:

Surely a ne £1000 set of wheels that let you accelerate away from trouble quicker or enable you to stop quicker to avoid hitting things ARE safety equiment :-)

I'm surprised you haven't suggested reduced pawl engagement delay as a safety benefit

smidsy

Rolf F wrote:

smidsy wrote:

Surely a ne £1000 set of wheels that let you accelerate away from trouble quicker or enable you to stop quicker to avoid hitting things ARE safety equiment :-)

I'm surprised you haven't suggested reduced pawl engagement delay as a safety benefit

It's implicit in my 'accelerate away quicker' statement

goonz

Even if wheels and gruppos are not included then you could still net a mega expensive pair of cycling shoes, cleats and pedals which wouldnt be a bad thought...

bendertherobot

Given that the rationale appears to be to encourage previous users back into the scheme it's not at all hard to argue that a new groupset or wheels to replace the now worn out ones is about the best safety requirement one could wish for.

supermurph09

The cyclescheme normally asks you to pay a % of the market value at the end of the term. Something like 5% for bikes over £500. Will they do that with kit as well?

goonz

Supermurph09 wrote:

The cyclescheme normally asks you to pay a % of the market value at the end of the term. Something like 5% for bikes over £500. Will they do that with kit as well?

Its a transfer of ownership fee and its at the discretion of the company you work for I believe. It's also more than 5%! I think its more like 18%?

My company have finally scrapped it so won't have to pay any fee on mine once the payments finish next month!

rolf_f

goonz wrote:

Even if wheels and gruppos are not included then you could still net a mega expensive pair of cycling shoes, cleats and pedals which wouldnt be a bad thought...

Shoes aren't on the list but you might get aways with them. I might be tempted to try that!

goonz wrote:

Its a transfer of ownership fee and its at the discretion of the company you work for I believe. It's also more than 5%! I think its more like 18%?

It's not that simple. It's 5% if you transfer the 'rental' period to Cyclescheme for another 3 years. I suspect the percentages would be different (and lower) for the safety kit as the 5 and 20% figures are based on the resale value of the bike at 1 year and 4 years.

supermurph09

Just checked, I'll pay 7%. Problem is, I've been paying it for 6 months and will be made redundant next month meaning I have to pay the damn balance. Hardly seems fair!!!!

dashik

So I get the point of a final payment of around 7% but what do you pay in rental for the additional years you keep the bike for? Is it a one off payment of 7% each year? Or a continuation of the same payments you already made?

smidsy

In Basic terms -

Purchase price of items divided by 12 months, less your tax/NI (as it comes off your gross salary).

Optional final transfer payment of 7%.

goonz

smidsy wrote:

In Basic terms -

Purchase price of items divided by 12 months, less your tax/NI (as it comes off your gross salary).

Optional final transfer payment of 7%.

Purchase price less VAT unless thats what you meant then sorry!

dashik

Sorry, to clarify -

You buy a bike for £1000 and then make 12 payments of £1000/12 less your Tax and NI.

At the end of the 1st year do you just pay £70 (7%) and the bike is yours?

If you extend the deal into years 2 and 3 what rental payments do you make if any? Is it the same monthly payments or just a one off payment for each additional year and if so how much?

Cheers

supermurph09

I think I had around £620 from the scheme, so that divided by 12 (months) is £51. But my salary sacrifice is something like £38 per month. Multiply that by 12 = £456. I then pay the 7%, which from memory was basically equal to about £58. So I've paid £456 + £58 = £514. A saving of over £100. Its pretty close to that anyway.

goonz

I dont know about these schemes but after the first year the bike is mine outright.

andy9964

Our scheme at work, I will have to pay 5%+VAT of the bikes purchase price (maximum £85) for a further three years rental.
This, I was told by the guy in charge of it, is just a technicality for tax reasons as the value of a 4 year old bike is deemed to be £0.
They really don't care what I do with the bike after the first 12 months

beams87

I've just come to the end of m scheme, and my pay slip is for the first time in 12 months as it should be! That said, if the above is true I may need some carbon based safety equipment. All I need now is a LBS who are willing to play ball.

For info: My company have not informed me that I need to buy the cycle as my initial hire peroid is finished. I would be liable to 25% FMV if they pushed the button. A kick in the teeth would be preferable right now. So here's hoping for a 3 year extension or that they gift it to me.

I was one of the lucky ones, and claimed VAT back too, benefiting the maximin of 42% over the year.

For absolute clarity, see here: http://www.cyclingactive.com/news/cycle ... gs-to-know