Cycle to Work - £1000 limit

thistle_
thistle_ Posts: 7,145
edited June 2017 in Commuting chat
Morning!

Is the £1000 limit on cycle to work scheme bikes at some companies (like ours) down to the employer not having the required consumer credit licence, or is it due to the scheme provider (e.g. Cyclescheme)?

We have people coming in to talk to answer questions about the cycle to work scheme (among other things) but it's only people from the company that administers our benefits programme, not anybody from our HR department so I was wondering if there's any point asking them if they can up the £1000 limit or if I need to be finding out who in our company I need to ask.

Comments

  • hopkinb
    hopkinb Posts: 7,129
    Section 9 of the bumf here should help. I think as a matter of policy, helping people who can afford to buy £5k bikes to do so tax-free would be a bit of a no-no. It does seem possible, but the guidance suggests this is appropriate in only a few specific circumstances, e.g. if a disabled person needs cycling equipment costing >£1000.

    https://www.gov.uk/government/uploads/s ... idance.pdf
  • thistle_
    thistle_ Posts: 7,145
    DfT wrote:
    If employers .... wish to offer packages in excess of £1000, they will need to obtain a
    standard consumer credit licence to cover that business.
    I guess that means that it's my employer that needs the CCL (or exemption from FCA rules as it now is) to offer bikes over £1000, not the scheme provider (e.g. cyclescheme).

    I was thinking more of a general case, rather than a exceptional circumstances, the guidance for that is pretty sensible.

    I think the limit on the group licence/exemption has been £1000 since the scheme started, with no increases for inflation etc.
  • fenix
    fenix Posts: 5,437
    £1000 still gets you a really nice bike.
  • tangled_metal
    tangled_metal Posts: 4,021
    It makes sense to me because it's a cycle to work scheme and do you really need a £1000+ commuter? Want one is different.

    Of course everyone buys for personal use too but officially you're supposed to use it mostly for commuting I always thought. However if true his is true and things were somehow checked up on then I wonder if the take up would be as high.

    As a lower tax rate employee it's not much of a saving. I can get more shopping around in the end of year clearances. Add in interest free deals on clearance/sale prices and up to 3 years in some shops. Why bother with the C2W scheme?
  • The Rookie
    The Rookie Posts: 27,812
    The £1K limit is due to the need for a consumer credit licence.

    There is an argument (untested either way) that 'topping up' is tax evasion (criminal offence) by circumventing the rules of the scheme but many retailers allow it.

    Or there is the person that buys a £100 BSO fitted with some £900 Zipp wheels which are then swapped to the good bike!

    The Tax break requires the majority of journeys (not distance) to be for commuting.
    Currently riding a Whyte T130C, X0 drivetrain, Magura Trail brakes converted to mixed wheel size (homebuilt wheels) with 140mm Fox 34 Rhythm and RP23 suspension. 12.2Kg.
  • redvee
    redvee Posts: 11,922
    The Rookie wrote:
    The Tax break requires the majority of journeys (not distance) to be for commuting.

    Only rode my C2W bike to work six times in the time I had it, kept to the other bike I was happy to use in all weathers but nobody checked which bike I rode.
    I did end up with a £1100 bike and guards and rack for my £1k voucher with no input from myself. Retailer suggested one bike but wasn't available for several weeks so offered me an alternative which was dearer and forgot to charge me for the rack and guards. :D
    I've added a signature to prove it is still possible.
  • UndercoverElephant
    UndercoverElephant Posts: 5,796
    Tangled Metal wrote:
    It makes sense to me because it's a cycle to work scheme and do you really need a £1000+ commuter? Want one is different.

    Oi! You! Off to Commuting General and think about what you just said.

    Tsk!
    Sun - Rain - Snow
  • dhope
    dhope Posts: 6,699
    UndercoverElephant wrote:
    Tangled Metal wrote:
    It makes sense to me because it's a cycle to work scheme and do you really need a £1000+ commuter? Want one is different.

    Oi! You! Off to Commuting General and think about what you just said.

    Tsk!

    Just to get things back on track, you can now blow the whole £1k on Rapha clothing
    http://pages.rapha.cc/cyclescheme
    :twisted: :lol:
    Rose Xeon CW Disc
    CAAD12 Disc
    Condor Tempo
  • UndercoverElephant
    UndercoverElephant Posts: 5,796
    dhope wrote:
    UndercoverElephant wrote:
    Tangled Metal wrote:
    It makes sense to me because it's a cycle to work scheme and do you really need a £1000+ commuter? Want one is different.

    Oi! You! Off to Commuting General and think about what you just said.

    Tsk!

    Just to get things back on track, you can now blow the whole £1k on Rapha clothing
    http://pages.rapha.cc/cyclescheme
    :twisted: :lol:

    Did that once - not on Rapha though. Did without a new bike and got a load of tools and reflective clothing instead. Castelli, Park Tools, etc. Lovely.

    Was slightly miffed I couldn't get parts, though.
    Sun - Rain - Snow
  • fenix
    fenix Posts: 5,437
    Grrrr - my employer is massive and still won't sign up to C2W. Annoying.
  • daniel_b
    daniel_b Posts: 11,578
    dhope wrote:
    UndercoverElephant wrote:
    Tangled Metal wrote:
    It makes sense to me because it's a cycle to work scheme and do you really need a £1000+ commuter? Want one is different.

    Oi! You! Off to Commuting General and think about what you just said.

    Tsk!

    Just to get things back on track, you can now blow the whole £1k on Rapha clothing
    http://pages.rapha.cc/cyclescheme
    :twisted: :lol:

    That is Hilarious!
    Felt F70 05 (Turbo)
    Marin Palisades Trail 91 and 06
    Scott CR1 SL 12
    Cannondale Synapse Adventure 15 & 16 Di2
    Scott Foil 18
  • chilling
    chilling Posts: 267
    I think it depends on the shop.

    I bought my last bike with C2W voucher through Evans. They were quite happy for me to top up the extra £250.

    Last year I used my C2W voucher to buy 'safety equipment and clothing' So a lot of Castelli and Oakleys :)

    They wouldn't cover a Garmin though as that's not safety related.
  • Initialised
    Initialised Posts: 3,047
    https://greencommuteinitiative.uk/employers/ has been set up for e-bikes but you don't have to buy an e-bike and there's no limit. I'm considering it for a new mountain bike
    I used to just ride my bike to work but now I find myself going out looking for bigger and bigger hills.

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