Cycle to work scheme

Nasqueron

newsgroupmonkey_ said:

Matt_22 said:

I'm about to start a new job that offers this scheme
 Has anyone used it recently?
 Seems you can get about 30% off a bike 

Yes, but there are caveats.
If you're after a top-end £3000 Marin or something, probably not.

If on the other hand, you're OK with a Boardman bike from Halfords or similar and prepared to play games, then you can!

Halfords are unfortunately the PC World of bike shops. There are times when you have to use them.
However, they also have sales in a 6 (I think?) week cycle.

I managed to pick up a Boardman CXR which was the previous year's model. They had some deal on all Boardman bikes, plus it was already discounted. Ultimately, it was something just over £600 and then got the 30% off from the cycle to work.

I've still got it. Great bike tbf. The beauty of the CXR is that it looks like a road bike, but is setup for being able to use slightly off-road. Obviously, not mountain bike material, but I do a lot of grass / rough paths on the canals.

The bike shop I got my premium bike from has a regular customer who has a firm that operates this, he gets himself a bike annually (talking rare custom made type bike, 10k+) because he can use the tax advantages!

Ballard

Nasqueron said:

Ballard said:

My company offer a bike to work scheme over 12 months and on the face of it, it is appealing. The problem with the scheme that was available to me was that I had the option of Halfords, which didn’t have the level of bike I was after, or an online company (who’s name escapes me). The online company wanted something like £700 at the end of the year for a c£2,500 bike. I don’t recall the figures exactly but it would have left me something like £100 better off.

Had I had a better option of supplier I may well have gone this route but I got it through a bricks and mortar shop outside of this scheme. £100 isn’t to be sniffed at but I was happy to pay a bit more and get to see the bike in person. 

£700 at the end doesn't sound like a valid amount for the scheme - the extended rental is usually under 10% of the value of the bike, it can even be lower

That was (roughly) the amount I was quoted. It was on a phone call and I had to double check the amount with him, which he confirmed. It made very little sense for me to go through with it. 

Nasqueron

Ballard said:

Nasqueron said:

Ballard said:

My company offer a bike to work scheme over 12 months and on the face of it, it is appealing. The problem with the scheme that was available to me was that I had the option of Halfords, which didn’t have the level of bike I was after, or an online company (who’s name escapes me). The online company wanted something like £700 at the end of the year for a c£2,500 bike. I don’t recall the figures exactly but it would have left me something like £100 better off.

Had I had a better option of supplier I may well have gone this route but I got it through a bricks and mortar shop outside of this scheme. £100 isn’t to be sniffed at but I was happy to pay a bit more and get to see the bike in person. 

£700 at the end doesn't sound like a valid amount for the scheme - the extended rental is usually under 10% of the value of the bike, it can even be lower

That was (roughly) the amount I was quoted. It was on a phone call and I had to double check the amount with him, which he confirmed. It made very little sense for me to go through with it. 

Odd, which scheme was it? CycleScheme I last used in 2016 but their rules on 3/7% were fairly normal and I've never seen a 28% charge unless that was the option to take ownership rather than the extended lease?

Ballard

I think that my firm still offer it so I will try to find out on Monday. From memory I could use either Halfords or a Welsh, mostly online, bike shop.

edit: it was here. https://www.tredz.co.uk/help-advice/customer-service/shopping-services/cycle-to-work/employee

I’d have needed to pay 25% after the year. I spoke to them and they didn’t explain the option to extend the lease so I’m not sure whether that was available when I was looking. 

Matt_22

Ballard said:

I think that my firm still offer it so I will try to find out on Monday. From memory I could use either Halfords or a Welsh, mostly online, bike shop.

edit: it was here. https://www.tredz.co.uk/help-advice/customer-service/shopping-services/cycle-to-work/employee

I’d have needed to pay 25% after the year. I spoke to them and they didn’t explain the option to extend the lease so I’m not sure whether that was available when I was looking. 

Thanks was it HR you spoke too?

WYSPECIAL

I’ve had a couple of bikes using the scheme but not for a few years,
Last one I got retailed at about £600. I think VAT then got deducted from this and I paid over 12 months via salary sacrifice. So saved 32%. I then was allowed to keep it for a further three years rent free before buying it for £18. I was no longer working for the same company by this stage and it didn’t cause any issue s with HMRC or anyone’s else.
I keep thinking I should get a new one but one I have is still in great condition despite doing a fair few miles.

FFHillbilly

I have quite a few friends who all use the cycle to work scheme, some of them every year. there is a £3000 limit on most places, but I have heard of some loopholes that shops allow for the buyer to be able to pay off the rest in cash if they want, but the total voucher is always £3000 max
people can apply for a voucher, and then spend that voucher on whatever they like from a bike shop, doesn't have to be a bike it can be accessories or clothes
the part about having to cycle to work 50% of the time is not checked
I know people who cycle to work most of the time on one of their 5 bikes, and when the scheme opens for the year they will just get a voucher, and buy a £3000 summer road bike that will never get ridden to work, or a mountain bike that will never get ridden to work.
these people I know are all higher rate tax payers so they tell me they are saving 40%, but I don't know exactly how it's calculated and how much they actually save as I've never seen the payslips
I don't think it's always the best way to buy a bike though. In the last year I have just bought 2 bikes in the sales and I saved 40% and 50% on them, and these were above the value of the scheme so would not be available to people using the scheme. 
loads of the heavily discount bikes are not allowed to be bought in the scheme, shops have have own rules about this. and theres a few bike shops that charge an admin fee of about £100  too

Ballard

Matt_22 said:

Ballard said:

I think that my firm still offer it so I will try to find out on Monday. From memory I could use either Halfords or a Welsh, mostly online, bike shop.

edit: it was here. https://www.tredz.co.uk/help-advice/customer-service/shopping-services/cycle-to-work/employee

I’d have needed to pay 25% after the year. I spoke to them and they didn’t explain the option to extend the lease so I’m not sure whether that was available when I was looking. 

Thanks was it HR you spoke too?

No. I phoned the company. 

Emily_Joy

I haven't realised there is a restriction on the retailer. Somehow I was under illusion you can go to any retailer nationwide. Is this imposed by the employer or by the scheme?

Nasqueron

Emily_Joy said:

I haven't realised there is a restriction on the retailer. Somehow I was under illusion you can go to any retailer nationwide. Is this imposed by the employer or by the scheme?

Schemes agree deals with retailers e.g. Cyclescheme I got mine from Evans with a choice of any brands they sell. The Halfords one can be used at some other shops too. Paul's Cycles (think the name is correct!) was an online retailer who accepted them too but charged you an admin fee as well due to their costs