Cycle to work scheme

BillScarab · 16 September 2009 at 9:04AM

They've just introduced it where I work. It's definately only a one year scheme not three years. Although we don't know yet what the final fee will be the chances of it being more than 5% are tiny.

It's a good scheme particularly for higher rate tax payers.

Remember it's not just bikes you can buy. When you buy your bike you can also buy accessories like helmets, clothing, tools, lights etc.

Yes you can buy much cheaper bikes outside of the scheme but they won't be good quality bikes and if you're going to ride it regularly you want a decent quality machine.

headcoat · 16 September 2009 at 9:32AM

Just get a good second hand one off ebay. I got a year old £400 bike for £200 including Cateye lights and crud catchers.

Gambit · 16 September 2009 at 10:36AM

We have a Halfords Cycle to work scheme at work but I was not happy going to Halfords as they didnt always have the best choice. Instead I found another store (Action Bikes) who accepted the vouchers and I managed to get the bike I wanted (Marin Larkspur) which worked out to be £400. But with our scheme it's a taxable benefit so it actually costs about £300 over the 18 months that our scheme runs for. What's more, its basically an interest free loan as instead of paying hundeds for a bike now, you get it taken from your pay bit by bit but still get the use of the bike from today.

Worth it in my opinion!

davetrousers · 16 September 2009 at 10:44AM

I used the Cycle2work scheme to get a bike.

There was no list of 'approved' suppliers, you just did your own research and said that one please.

Because the Company is buying the bike for 'work purposes' there is no VAT (iyswim), so the bike costs less in the first place. You then 'hire' the bike from your employer from your gross salary. Then at the end of the 'hire' period you buy the bike for a nominal sum.

This works out at almost a 50% discount. An interest free loan doesn't even come close.

I am not sure why a company would specify where you must get the bike from. The Cycle2work scheme certainly doesn't dictate where you should get it from!

MoveOver · 16 September 2009 at 10:57AM

Winter or summer a cyclist can get wet. I tried several cycle capes until I found one that would fit over handlebars and rucksack. Then used an old ramblers trick by placing spare battery packs on the four bottom corners folding them inside the cape and securing with a rubber band. The weight of the batteries keeps the cape from blowing up. Spare Batteries are then always available. I also use one of those climbers headset lamps so that I can see where I am looking at night.

cowbutt · 16 September 2009 at 11:03AM

Sponge wrote: »

My employer has just signed up to the scheme and I wondered if anybody had any experience of it?

I'm tempted, but put off by what happens at the end of the loan period.

If the 5% is accurate, then it'd be worth while buying a bike. But if it isn't, then I'd be better off just using my employer's other scheme, which is a simple 12 month interest free loan of up to £500,repaid monthly from my salary.

I used my employer's cycle to work scheme. Their wording was very similar to your employer's, and they automatically charged 5%+VAT to buy the bike on the 13th month.

cowbutt · 16 September 2009 at 11:06AM

headcoat wrote: »

Just get a good second hand one off ebay. I got a year old £400 bike for £200 including Cateye lights and crud catchers.

If you're eligible for a cycle to work scheme, you can get a new bike and accessories effectively discounted at the highest rate of tax you pay.

cowbutt · 16 September 2009 at 11:09AM

brigittejohn wrote: »

I cycle to work every day, and we have the "cycle to work" scheme.

I have not used it for the simple reason that I do not think it would save me any money at all.
Indeed, you can only buy the bicycle from set suppliers, such as Cycle Surgery, etc... This suppliers are not the best value ones at all.

That's down to your employer's implementation, rather than the scheme in general. My employer simply required an invoice for a bike and accessories. Try having a word with HR.

tourdefrancis · 16 September 2009 at 11:20AM

Why does the bike to work scheme expect me to buy it back off my employer at the end of the scheme when i have been paying for it out of my salary.....surely its my bike?

mvteng · 16 September 2009 at 11:39AM

No, until the end of the 12 month period the bike is owned by the employer. You then buy it from them for a nominal sum 5%, 10%, whatever.

I don't know why, but thats just the way it works.

Cycle to work scheme

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free