http://www.cyclescheme.co.uk/
junglist_matty
Posts: 1,731
Got a bike and some cycle equipment on the cyclescheme in April last year:
Bike:
Trek Lexa C
Equipment:
Comfortable Saddle
Helmet
Bib shorts
Total "equipment" cost (including bike): £705
Cyclescheme costs:
Administration fee = £40
Monthly salary deductions (before tax) = £67 (which equates to £54 after 20% tax)
End of scheme options:
1. Under a separate agreement with Cyclescheme, you pay a small, one-off refundable deposit (3% or 7% including VAT of the equipment value*) and continue to use the bicycle for up to 3 years. The monthly payments are zero. At the end of this period, Cyclescheme refund the deposit if you do not wish to keep the equipment.? This option will cost you £46.83.
2. Take ownership of the equipment by paying Cyclescheme a much higher valuation (e.g., for a one year old bicycle this would be 18% or 25%* of the certificate value in accordance with HMRC requirements).? This option will cost you £167.25.
3. Return the bicycle to Cyclescheme, at your own cost.
Obviously, I chose option 1 and paid the £47
Therefore, the total price I've paid for £705 of equipment and bike is:
12months * £54 = £648
£40 admin fee
£47 extended hire period
TOTAL = £735 :!: :?: :evil:
NOTE: The shop I bought the bike from does a 12 month 0% finance option on all brand new bikes!!!!!!
In short, avoid this cyclesheme bo||ocks unless your on the 40% tax bracket, it doesn't save you a penny, it actually costs you a small fee for a whole bunch of hassle!
Bike:
Trek Lexa C
Equipment:
Comfortable Saddle
Helmet
Bib shorts
Total "equipment" cost (including bike): £705
Cyclescheme costs:
Administration fee = £40
Monthly salary deductions (before tax) = £67 (which equates to £54 after 20% tax)
End of scheme options:
1. Under a separate agreement with Cyclescheme, you pay a small, one-off refundable deposit (3% or 7% including VAT of the equipment value*) and continue to use the bicycle for up to 3 years. The monthly payments are zero. At the end of this period, Cyclescheme refund the deposit if you do not wish to keep the equipment.? This option will cost you £46.83.
2. Take ownership of the equipment by paying Cyclescheme a much higher valuation (e.g., for a one year old bicycle this would be 18% or 25%* of the certificate value in accordance with HMRC requirements).? This option will cost you £167.25.
3. Return the bicycle to Cyclescheme, at your own cost.
Obviously, I chose option 1 and paid the £47
Therefore, the total price I've paid for £705 of equipment and bike is:
12months * £54 = £648
£40 admin fee
£47 extended hire period
TOTAL = £735 :!: :?: :evil:
NOTE: The shop I bought the bike from does a 12 month 0% finance option on all brand new bikes!!!!!!
In short, avoid this cyclesheme bo||ocks unless your on the 40% tax bracket, it doesn't save you a penny, it actually costs you a small fee for a whole bunch of hassle!
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Comments
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LMFAO!!!
Cervelo S5 Ultegra Di2.0 -
Not to mention the 20-30% you could have saved had you bought last year's model0
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Haven't you got the tax bit the wrong way round?
If you'd bought it yourself on 0% (assuming discount) it would cost you something like £900 before tax.0 -
Why do the gross monthly salary deductions total £804? It's supposed to come to £705. Something isn't adding up here.
But the thing you always need to remember is that the Cycle to Work scheme is an agreement between the employer, employee and retailer that the HMRC allow you to do salary sacrifice on - cyclescheme.co.uk is a business that administers the whole process for you, in return for taking a cut.0 -
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bompington wrote:Why do the gross monthly salary deductions total £804? It's supposed to come to £705. Something isn't adding up here.
But the thing you always need to remember is that the Cycle to Work scheme is an agreement between the employer, employee and retailer that the HMRC allow you to do salary sacrifice on - cyclescheme.co.uk is a business that administers the whole process for you, in return for taking a cut.
Yep, its £804 rather than £705 because the scheme is not interest free (its 14% APR).... Great way to "save" money ey!0 -
The scheme IS interest free as far as I know. It certainly was for me, although that was a couple of years ago.0
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In which case they have indeed taken it right off into total rip-off territory.junglist_matty wrote:bompington wrote:Why do the gross monthly salary deductions total £804? It's supposed to come to £705. Something isn't adding up here.
But the thing you always need to remember is that the Cycle to Work scheme is an agreement between the employer, employee and retailer that the HMRC allow you to do salary sacrifice on - cyclescheme.co.uk is a business that administers the whole process for you, in return for taking a cut.
Yep, its £804 rather than £705 because the scheme is not interest free (its 14% APR).... Great way to "save" money ey!
I have been trying (for well over a year now) to persuade my employer that you can get a much better deal by paying cash at an LBS - who will happily give me a cash discount if we do. The only reason I can think of for their reluctance is that they think I'm trying to work some sort of scam. Instead, they would much rather go with cyclescheme.co.uk, despite my protestations that that's the real scam. Frustrating.0
