Cycle to work scheme

dunclane

yathers wrote: »

Yeah, i did buy an accessory, a pump for £25 taking the total to 949.99. Like I say if you add my £53.13 x 18months up the repayment is more??? Only £6/7 but still more???

Its payed over 18 months, but not to make sure im on min wage, im a secondary school teacher on £30,000+ so I dont really understand it???

Anyone with ideas???????
Oh, its the onyourbike scheme im on with, cheers.

The £53.13 payment is before tax & NI.

For you to save enough to pay for your £949.99 bike & accessories you would actually have to earn (rough figures!!) £ 1325.00 if you are a 22% tax payer.

simbamk1

what happens if you go bankrupt whilst on the scheme me and my partner are currently on it ???

custardy

simbamk1 wrote: »

what happens if you go bankrupt whilst on the scheme me and my partner are currently on it ???

i doubt it would be affected since its a salary sacrifice
better asking on the BR board though

sickparrot

My employer is introducing this scheme at the beginning of July. I already cycle to work anyway but it would be nice to have a better bike.

Whether I go for it or not depends on how the actual figures pan out, we haven't had any details yet (the cyclescheme calculator suggests a saving of about £200 on a £500 bike).

Here's hoping it will be worth it.

I've had a look at the Boardman hybrid but didn't really like the look of it. I don't like black gloss, also the handlebars looked too spindly and it's got slick tyres, so I would have to spend another £40 to replace those with treads.

I like the look of the Scott's (at another shop), 600gm heavier but still a lot lighter than the one i'm riding now.

coffeedog

I want to try and persuade my employer to enter into this scheme. Does anyone know whether the employer has to pay for the bike upfront ( to cyclescheme or whoever). That's how i thought it worked but the guys in my local bike shop said that its all sorted out through the tax system and there is no initial outlay for the employer. I'm confused now but can't be if i want to propose it to my boss! Thanks

flea72

coffeedog wrote: »

I want to try and persuade my employer to enter into this scheme. Does anyone know whether the employer has to pay for the bike upfront ( to cyclescheme or whoever). That's how i thought it worked but the guys in my local bike shop said that its all sorted out through the tax system and there is no initial outlay for the employer. I'm confused now but can't be if i want to propose it to my boss! Thanks

yes, the bike has to be paid for upfront, but your monthly payments and savings in VAT/NI/TAX, means they recoup their initial upfront layout very quickly, if thats the route they want to go

however, alot of bike stores are offering to shoulder the initial outlay themselves, along the lines of a loan agreement with your employer. usually interest free terms, with the drop in salary/tax/ni more than covering the monthly payments

F

coffeedog

Thanks very much - I've now downloaded a guide for employers from Cyclescheme and that is what it says. So i'll give it a go this week with the boss. fingers:eek: crossed

sickparrot

I've applied for mine now, £550 for a Scott Sub 30, we'll see how long it takes to get approved.

I've read on another forum that the Inland Revenue are starting to ask employers to charge a proper market value for the bike at the end of the scheme, not just the usual 5%. If this is the case I won't bother again, it removes the money-saving incentive to it.

custardy

sickparrot wrote: »

I've applied for mine now, £550 for a Scott Sub 30, we'll see how long it takes to get approved.

I've read on another forum that the Inland Revenue are starting to ask employers to charge a proper market value for the bike at the end of the scheme, not just the usual 5%. If this is the case I won't bother again, it removes the money-saving incentive to it.

I think a lot would the same
the RM C2W is £500 max with a £35 payment at the end
if they charged more at the end it wouldnt make it viable vs the tax saving
I would just buy my own bike without the restrictions of choice in C2W

sickparrot

sickparrot wrote: »

I've applied for mine now, £550 for a Scott Sub 30, we'll see how long it takes to get approved.

Update - Approved!, now the wait for the voucher to turn up!