Cycle to work scheme

Veteransaver

kinger101 said:

I looked at it once previously a long time ago (as a basic rate taxpayer) and decided against using it.  I was told by the bike shop I had to pay list price for the bike.  At the time, it was much cheaper to buy the previous year's model at a discount.

So check carefully whether the savings are real.

That's always been the reason I've avoided them, you can often save 20-30% with older models etc, and as you say, schemes in the past would only sell at list price. New schemes using vouchers may be better. But you are still committing to a voucher from a a certain outlet (Evans in my case) with no guarantee of a discounted bike.
You need to often wait a few days/weeks for the voucher too, by which point the bike you might have been thinking of buying may have been sold out.

Emily_Joy

Our small local bikeshop, that appears to have the bike I like

(1) accepts Cyclesheme vouchers for discounted models as well, in particular the owner offered me an electric bike with 35% discount; 

(2) asks for £100 deposit to reserve the bike, so that it is not sold out by the time the voucher is processed;

(3) they are also able to order directly from manufacturer and their outlet.

Nasqueron

kinger101 said:

I looked at it once previously a long time ago (as a basic rate taxpayer) and decided against using it.  I was told by the bike shop I had to pay list price for the bike.  At the time, it was much cheaper to buy the previous year's model at a discount.

So check carefully whether the savings are real.

The savings are real, you're comparing apples and oranges - a new bike guaranteed in your size vs an older model reduced to clear which may be of limited stock. Also OP may find different offers in different places - when I got my second one Evans were doing a trade in for charity where I got rid of my really old heavy basic MTB - I got bike on Cyclescheme, plus £100 of accessories with the tax saving

Veteransaver said:

kinger101 said:

I looked at it once previously a long time ago (as a basic rate taxpayer) and decided against using it.  I was told by the bike shop I had to pay list price for the bike.  At the time, it was much cheaper to buy the previous year's model at a discount.

So check carefully whether the savings are real.

That's always been the reason I've avoided them, you can often save 20-30% with older models etc, and as you say, schemes in the past would only sell at list price. New schemes using vouchers may be better. But you are still committing to a voucher from a a certain outlet (Evans in my case) with no guarantee of a discounted bike.
You need to often wait a few days/weeks for the voucher too, by which point the bike you might have been thinking of buying may have been sold out.

Similar to above, old model with reduced availability is more likely to go and not be replaced than a new model where the shop can get more stock. Not all schemes are tied to one retailer, even with the Halfords one, some LBS can take the vouchers

kinger101

Nasqueron said:

kinger101 said:

I looked at it once previously a long time ago (as a basic rate taxpayer) and decided against using it.  I was told by the bike shop I had to pay list price for the bike.  At the time, it was much cheaper to buy the previous year's model at a discount.

So check carefully whether the savings are real.

The savings are real, you're comparing apples and oranges - a new bike guaranteed in your size vs an older model reduced to clear which may be of limited stock. Also OP may find different offers in different places - when I got my second one Evans were doing a trade in for charity where I got rid of my really old heavy basic MTB - I got bike on Cyclescheme, plus £100 of accessories with the tax saving

Veteransaver said:

kinger101 said:

I looked at it once previously a long time ago (as a basic rate taxpayer) and decided against using it.  I was told by the bike shop I had to pay list price for the bike.  At the time, it was much cheaper to buy the previous year's model at a discount.

So check carefully whether the savings are real.

That's always been the reason I've avoided them, you can often save 20-30% with older models etc, and as you say, schemes in the past would only sell at list price. New schemes using vouchers may be better. But you are still committing to a voucher from a a certain outlet (Evans in my case) with no guarantee of a discounted bike.
You need to often wait a few days/weeks for the voucher too, by which point the bike you might have been thinking of buying may have been sold out.

Similar to above, old model with reduced availability is more likely to go and not be replaced than a new model where the shop can get more stock. Not all schemes are tied to one retailer, even with the Halfords one, some LBS can take the vouchers

No, I'm comparing bikes with bikes.  I bought the size and bike I wanted at a good price outside of the cycle scheme.  I'm just saying at the time I purchased, I found a cheaper option that worked for me by weighing up all the options

Nasqueron

kinger101 said:

Nasqueron said:

kinger101 said:

I looked at it once previously a long time ago (as a basic rate taxpayer) and decided against using it.  I was told by the bike shop I had to pay list price for the bike.  At the time, it was much cheaper to buy the previous year's model at a discount.

So check carefully whether the savings are real.

The savings are real, you're comparing apples and oranges - a new bike guaranteed in your size vs an older model reduced to clear which may be of limited stock. Also OP may find different offers in different places - when I got my second one Evans were doing a trade in for charity where I got rid of my really old heavy basic MTB - I got bike on Cyclescheme, plus £100 of accessories with the tax saving

Veteransaver said:

kinger101 said:

I looked at it once previously a long time ago (as a basic rate taxpayer) and decided against using it.  I was told by the bike shop I had to pay list price for the bike.  At the time, it was much cheaper to buy the previous year's model at a discount.

So check carefully whether the savings are real.

That's always been the reason I've avoided them, you can often save 20-30% with older models etc, and as you say, schemes in the past would only sell at list price. New schemes using vouchers may be better. But you are still committing to a voucher from a a certain outlet (Evans in my case) with no guarantee of a discounted bike.
You need to often wait a few days/weeks for the voucher too, by which point the bike you might have been thinking of buying may have been sold out.

Similar to above, old model with reduced availability is more likely to go and not be replaced than a new model where the shop can get more stock. Not all schemes are tied to one retailer, even with the Halfords one, some LBS can take the vouchers

No, I'm comparing bikes with bikes.  I bought the size and bike I wanted at a good price outside of the cycle scheme.  I'm just saying at the time I purchased, I found a cheaper option that worked for me by weighing up all the options

As I said, comparing apples with oranges.

Buying a discounted price old bike with limited sizes, older spec etc on sale is categorically not the same as a brand new bike with the latest spec with the C2W scheme. IF you find a bike that suits your budget AND it's the right size, AND it's not on the C2W scheme, then it may be a better deal if it's greater than the circa 25% tax saving of C2W. Otherwise it's not, hence apples and oranges

Emily_Joy

Just popped in local Evans cycles, to help a friend of mine to choose a bike. Was surprised to hear it is not possible to try any of the bikes they have for sale outside! Is it a common policy nowadays? A shop assistant gave an excuse along the lines "what if you will be hit by a car passing by?"..

Nasqueron

I don't remember being able to test ride the bike though you could ask them to put it on a turbo or rollers to at least get an idea of it (if it's possible for the type).

wallofbeans

Hi All,

I'm looking into getting a new folding bike for my commute and can use cyclescheme.co.uk -- but I'm confused about how this works and if it's a good idea for me. 

I'm looking at a £2300 Brompton bike and it seems the total I would pay is closer to £1300 over 12 months - and so a very good deal for these expensive bikes. 

But I'm confused by this mention of not owning the bike for 3 years. The calculator says I pay a monthly amount from my salary and then, after 12 months, a one off small payment - and that's it.

But the site also talks about the details of the "own it later" option, saying "You pay a small refundable deposit (either 3% or 7% of your certificate value) and continue to use the equipment for 3 years. No other payments (whatsoever) are required during this time. At the end of the 'Own it later' period, no further action or payment is required if you wish to keep the equipment - we simply retain your deposit and transfer ownership to you. Cyclescheme refunds the deposit if you do not wish to keep the equipment."

What is this refundable deposit they mention? And why isn't it given on their calculator? And where does this 3 years come into it? Don't I own the bike after 12 months? 

I suspect I am missing something, and the 'cyclescheme' calculator isn't helping, and their FAQs just made me more confused. 

Nasqueron

wallofbeans said:

Hi All,

I'm looking into getting a new folding bike for my commute and can use cyclescheme.co.uk -- but I'm confused about how this works and if it's a good idea for me. 

I'm looking at a £2300 Brompton bike and it seems the total I would pay is closer to £1300 over 12 months - and so a very good deal for these expensive bikes. 

But I'm confused by this mention of not owning the bike for 3 years. The calculator says I pay a monthly amount from my salary and then, after 12 months, a one off small payment - and that's it.

But the site also talks about the details of the "own it later" option, saying "You pay a small refundable deposit (either 3% or 7% of your certificate value) and continue to use the equipment for 3 years. No other payments (whatsoever) are required during this time. At the end of the 'Own it later' period, no further action or payment is required if you wish to keep the equipment - we simply retain your deposit and transfer ownership to you. Cyclescheme refunds the deposit if you do not wish to keep the equipment."

What is this refundable deposit they mention? And why isn't it given on their calculator? And where does this 3 years come into it? Don't I own the bike after 12 months? 

I suspect I am missing something, and the 'cyclescheme' calculator isn't helping, and their FAQs just made me more confused. 

When you use cycle to work, you still pay the £2300 from your salary, it's just it comes out before tax which in turn reduces your tax so that is the saving element. 

The point of the cycle to work tax benefit is that you effectively rent the bike until it's written off in value. When it was first launched, people would take the p with them and say a brand new bike was worth nothing after a year so HMRC closed the loophole. Some schemes do it slightly differently but cycle scheme charge the 7% (based on bike value quoted) as an extended rental to cover their admin fees and at the end of the 4 years, you can either hand the bike back and get the 7% refunded to you or keep the bike.

The "ownership" element is the one I find most people seem to misunderstand, realistically the bike is yours from day 1, your firm doesn't want the bike and provided you pay the money over the 12 months, don't care. Cyclescheme don't want it either really though would probably look to sell it and make some profit. It's your bike, just technically it's a loan for the first year and a rent for the next three. If you want to see it any other way, that is fine

wallofbeans

Nasqueron said:

wallofbeans said:

Hi All,

I'm looking into getting a new folding bike for my commute and can use cyclescheme.co.uk -- but I'm confused about how this works and if it's a good idea for me. 

I'm looking at a £2300 Brompton bike and it seems the total I would pay is closer to £1300 over 12 months - and so a very good deal for these expensive bikes. 

But I'm confused by this mention of not owning the bike for 3 years. The calculator says I pay a monthly amount from my salary and then, after 12 months, a one off small payment - and that's it.

But the site also talks about the details of the "own it later" option, saying "You pay a small refundable deposit (either 3% or 7% of your certificate value) and continue to use the equipment for 3 years. No other payments (whatsoever) are required during this time. At the end of the 'Own it later' period, no further action or payment is required if you wish to keep the equipment - we simply retain your deposit and transfer ownership to you. Cyclescheme refunds the deposit if you do not wish to keep the equipment."

What is this refundable deposit they mention? And why isn't it given on their calculator? And where does this 3 years come into it? Don't I own the bike after 12 months? 

I suspect I am missing something, and the 'cyclescheme' calculator isn't helping, and their FAQs just made me more confused. 

When you use cycle to work, you still pay the £2300 from your salary, it's just it comes out before tax which in turn reduces your tax so that is the saving element. 

The point of the cycle to work tax benefit is that you effectively rent the bike until it's written off in value. When it was first launched, people would take the p with them and say a brand new bike was worth nothing after a year so HMRC closed the loophole. Some schemes do it slightly differently but cycle scheme charge the 7% (based on bike value quoted) as an extended rental to cover their admin fees and at the end of the 4 years, you can either hand the bike back and get the 7% refunded to you or keep the bike.

The "ownership" element is the one I find most people seem to misunderstand, realistically the bike is yours from day 1, your firm doesn't want the bike and provided you pay the money over the 12 months, don't care. Cyclescheme don't want it either really though would probably look to sell it and make some profit. It's your bike, just technically it's a loan for the first year and a rent for the next three. If you want to see it any other way, that is fine

Thanks for this. The bit that wasnt clear from the cycle scheme 'calculator' was that the bike didn't officially become mine until a further 36 months after the initial 12. Which is what worries me. What if I am no longer in the same job after 3 years? This is perfectly possible. Do they still not care? Do I still get to keep the bike?