Cycle to work salary sacrifice

vacheron

shaddzzuk wrote: »

...Now i understood that there would be interest on the bike which is why I expected it was £100 for 12 months this would mean they got £1200 for the period giving them a interest of £200.

Strange, The scheme shouldn't charge interest (especially of 20%) as you aren't technically borrowing the money, you are agreeing to a reduction in your salary for 12 months.

Did you perhaps buy a £1000 bike and £200 of accessories? Perhaps the final value of the bike (£200) was included in the loan so you would have nothing to pay at the end?

King_Nothing

You should have the cheaper option to extend the "rental" period for another couple of years, but not pay anything monthly, that's what I did with mine, didn't see the point in paying the higher fee to take ownership of the bike after the first year, when I would just "own it after couple more years.