Any experience of cycle to work?

[Psycho Sonny]

What happens if things break or get replaced if your company owns the bike?

You are responsible for the upkeep and maintenance.

If it breaks you need to pay for it to get fixed.

I think the reason why they own the bike is because they paid for it and the you pay them back. It's essentially a loan. So if you were to take out the loan then quit work the following day. They can take the bike back.

That's how I see it.

The bike is yours once the full term is over. You only make payments for the first 12 or 18 months. After that you will make £0 payments for 5-6 years in total then its yours to do whatever.

Yes some employers will be LAX with the rules.

But there is official guidance.

https://www.gov.uk/government/publications/cycle-to-work-scheme-implementation-guidance

Those that don't follow the rules potentially could find them the subject of a tax assessment.

It's a possibility. The rules are pretty clear on this.

 

[nam]

just signed up today for a 1200 voucher through work on the cyclescheme.co.uk. I hope to get a brompton M2L unfortunately not many in stock and there is a 6-8 week delay if ordered through brompton store. Looking around now through cyclescheme retailers to see who has one avaliable to ship for the next few days. The only thing I wanted is the new swytch kit for the brompton but I can't see how I can get that using the cyclescheme voucher will probably buy it myself

https://www.swytchbike.com/universal-ebike-conversion-kit-pre-order/

 

[willhub]

I was going to use C2W, but it seemed too cagey for me.

Not to mention I wouldn't actually use the bike to cycle to work since it'd get nicked.

 

[kefkef]

I havent cycled to work on mine 2 yet, and it's been 3 years since i got the first one. My place were happy for me to use it to keep fit/healthy.

 

[AndyCr15]

I was going to use C2W, but it seemed too cagey for me.

Erm... what? How so?

 

[Psycho Sonny]

I havent cycled to work on mine 2 yet, and it's been 3 years since i got the first one. My place were happy for me to use it to keep fit/healthy.

you and your employer are both committing fraud then

"The following conditions must also be met: • An employee must not, at any point during the hire period, own the cycle; • At least 50% of the cycle’s use must be for ‘qualifying journeys’, i.e. commuting to work purposes; • The offer of the use of hired cycles must be made available across the whole workforce, with no groups of employees being excluded. This does not necessarily have to be through a salary sacrifice arrangement in each case."

https://assets.publishing.service.g...t_data/file/845725/cycle-to-work-guidance.pdf

Who do you work for?

 

[mattyfez]

There's no contractual obligation to prove that the bike is used for 50%+ qualifying journeys though, (even if there were, you would you reliably be able to demonstrate it?) so it's a moot point really.

 

[Jonny ///M]

Nobody in the history of the scheme has ever had to prove usage.

 

[helpimcrap]

Good to read this because I'm considering this.
£1000 bike - I owe £600. £44 a month then £70 at the end to own it.

Although if I choose to carry on a £0 lease for 4yrs I wouldn't have to pay the extra £70?

 

[Nazca]

And depending which scheme you don't have to buy a bike with the C2W scheme. Friend used it to purchase some new carbon wheels for his existing bike with his work's scheme.

 

[Jonny ///M]

Good to read this because I'm considering this.
£1000 bike - I owe £600. £44 a month then £70 at the end to own it.

Although if I choose to carry on a £0 lease for 4yrs I wouldn't have to pay the extra £70?

https://www.cyclescheme.co.uk/employers/employer-updates/hmrc-update

Following the guidelines for 12 month valuation according to cyclescheme.

£1000 - your tax+ni rate.

So £580 or £680 divided by 12 months. £48 or £56 per month.

At the end of 12 months HMRC value a £1000 bike at 25%. You take £1000 /1.2 to remove the vat. £833.33 x 25% so £208.33 would be your fee to own the bike.

Cyclescheme will take a 7% "deposit" so £70. After the 4 years you can hand the bike back and get the deposit back. Nobody does this. You pay 7% and keep the bike. Your wages are back to normal and can do another scheme after year one but you have a private agreement with cyclescheme for the following years.

 

[helpimcrap]

https://www.cyclescheme.co.uk/employers/employer-updates/hmrc-update

Following the guidelines for 12 month valuation according to cyclescheme.

£1000 - your tax+ni rate.

So £580 or £680 divided by 12 months. £48 or £56 per month.

At the end of 12 months HMRC value a £1000 bike at 25%. You take £1000 /1.2 to remove the vat. £833.33 x 25% so £208.33 would be your fee to own the bike.

Cyclescheme will take a 7% "deposit" so £70. After the 4 years you can hand the bike back and get the deposit back. Nobody does this. You pay 7% and keep the bike. Your wages are back to normal and can do another scheme after year one but you have a private agreement with cyclescheme for the following years.

It is slightly different on the scheme my hospital does it through.
£1000 bike.
£50 month 12 months. =£600ish
£100 to buy the bike.
Then I can't do cycle scheme for 2 years after I've finished paying (<£500 value =1 year, >£500=2years).

 

[Jonny ///M]

That at least seems easier to understand!

Halfords are slightly different and I've heard of a tax code change happening rather than a one off fee but that was for a halfords employee.

 

[helpimcrap]

My hospital does it through Viv up and I rang them to confirm as their T's and C's seemed vague. That's the gist. Forgot to ask them if the final payment includes VAT as it seemed to indicate it would be.

As the cycle scheme website said £44 for 12 months then £70 I rang and questioned it.

Ordered the bike anyway... Lol.

 

[GSXRMovistar]

Got a bike a few weeks back via CycleScheme, very straight forward, payback over 9 months and a 42% saving.

I did find a number of the bigger retailers wouldn't let me add additional funds to the voucher, I know this is part of T&Cs but finding bikes in stock at the moment is a challenge so had to look at more expensive bikes; I even asked if they could break the bike down so i could buy part with the voucher and the remainder separately, but no joy.

Anyway found a small independent dealer and they were happy for me to add funds so all good.

 

[MikeWild74]

Good to read this because I'm considering this.
£1000 bike - I owe £600. £44 a month then £70 at the end to own it.

Although if I choose to carry on a £0 lease for 4yrs I wouldn't have to pay the extra £70?

I signed the 4yr lease to own when my 2nd bike finished last year.

 

[SPG]

The entire system is a mockery of pointless rules and bureaucratic shenanigans to keep idiots in Jobs. It beggers belief how big goverment have wasted countless millions on setting up this over complicated scheme within schemes. It really should be simple.

 

[mattyfez]

It is really simple, it's a salary sacrifice tax free way to get you a bike.

More people on a bike means more happy people, and hopefully less heart attacks for the NHS to pay for.

 

[GSXRMovistar]

The entire system is a mockery of pointless rules and bureaucratic shenanigans to keep idiots in Jobs. It beggers belief how big goverment have wasted countless millions on setting up this over complicated scheme within schemes. It really should be simple.

From my own experience I can't think how they could have simplified it any more, not one bit of it was complicated.

 

[chroniclard]

So does your employer actually have to pay for the bikes upfront?

There are only 7 of us and its only likely me thats interested, unsure if my boss will go for it. (I want a 3.5k ebike so quite a substantial saving to be had)