Cyclescheme

Bastardbrain

Just applied for my contract and something doesnt add up to me
I`ve applied for a £1000 voucher.
But I pay back £56.53 a month for 18 months. The total then comes too £1010.34. Plus the final fee.
Am i missing something?

seajays

Seems slightly odd that it doesn't total a £1000 for your 18 repayments... maybe double check those figures.

Your repayments should pay back the total, but if paying by salary sacrifice this is paid out of your salary before tax and national insurance, which means that the cost to your "take home" pay is less - between 25%-42% depending on your current tax/national insurance payments.

So if you're on standard rate tax/nat insurance, you can usually expect to be saving about 30%. Therefore although £56 comes off your salary before tax, that only affects your take home pay by £39.

andy9964

There may be an admin fee, there was on mine. I didn't find out until I'd passed the point of no return (online application), and I payed £63 p/m x 12 months for a £700 voucher, plus £58 final fee
Monthly payments were pre tax of course, worked out about £43 worse off. Total cost was about £575, so not the 33% saving they touted. Won't be doing it again, I'd rather save up and buy a bike that is last years model

seajays

Shame about the admin fee! They don't do that at our place - but then we don't use cyclescheme, just partnerships with Halfords and Edinburgh Bicycle Cooperative, who have local Aberdeen shops in the Bike to Work scheme.

Can't you buy last year's model through the scheme there? You can buy anything you like up here (to £1000 max).