bike4work scheme

Most of it has been covered already here but cyclescheme do take ownership for a further two years to reduce the value of the bike and to do so take a smaller % final value fee as Rotty has said.

Most places will have a different price on cyclescheme as they take a 10% fee from the voucher. If you wanted a bike at £2000, your £1000 voucher is only really worth £900 to a shop so you would be paying £1100 + your £1000 voucher to get that bike.

If a bike retailed at £1000 but had 20% off making it £800 the shop couldn't take another 10% hit on the £800 as that would be the margin gone. In the end the shop want £800 for that bike if they sold it normally so a voucher of £888 would be required for the shop to be paid the £800 they always wanted for the bike.

Total cost of bike and accessories: £1000
Net cost of bike and accessories, including finance and admin costs (if applicable): £1000
Income tax saving over hire period: £400
Employee NI saving hire period: £20
Final cost of bike & accessories: £580
Total saving: £420
Gross salary sacrifice, based on 12 month hire period (this should be the figure displayed on your hire agreement): £83.33
Net salary sacrifice, based on 12 month hire period: £48.33
Percentage saving over RRP: 42%

£48.33 net x 12 months making it £580. Add to that the 7% fee as the bike is over £500 makes it £650 in total for a £1000 bike if you are a higher rate tax payer.
 
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My £850 certificate has just been accepted yesterday and I'll be having a Forme Longcliffe 3.0 road bike.
Don't do what my work colleague did and walk into a cheap bicycle centre and choose a heavy mountain bike with thick tyres for a 18 mile round trip.
Go to a proper specialised shop, tell them what you want it for and what surface you will be riding on and more than likely (unless you're riding over mountains) it will be a Hybrid or road bike.
If they suggest certain makes then by all means go back to the cycle discount centre and see if they have the same bike for cheaper.
My big problem now is whether to go Pannier or not, whether to go Cleat or not, whick bike lock, toolkit and pump to get and of course computer.
 
Our company did it 2 years running, i got a bike the first year, should have been about £470, i paid £250. At the end of the year i paid a nominal fee to 'own' the bike, it was £10.
I saved loads on this scheme. The 2nd year the discount was a bit less i think, but i didn't take part so didn't pay much attention to it.
Certainly a worthwhile scheme imho.
 
I have the same scheme but I also have access to FREE bikes as well. My company will 'lend' me one for as long as I wish to use it. I just give it back whenever and there is no charge. Not used it though as I am too far away.
 
The more tax you pay the cheaper it works out, although i don't believe the scheme is as good as it used to be. Also if you leave work for a new employeer you have to pay the remaining amount without any tax benefit.
From Sept onwards you will find some good sales to be had online (evans and cycles uk) as they try to shift old 2012 stock for the new 2013 stock.
I saved 30% by buying a bike in novemeber.

Also, you don't have to cycle to work, you can be expected to cycle, but in reality they can't check up on you and even if they do just say you have an injury.
Girl in work got her other half a £1k mtb, and no questions asked!
 
Jonny ///M said:
Most of it has been covered already here but cyclescheme do take ownership for a further two years to reduce the value of the bike and to do so take a smaller % final value fee as Rotty has said.

Most places will have a different price on cyclescheme as they take a 10% fee from the voucher. If you wanted a bike at £2000, your £1000 voucher is only really worth £900 to a shop so you would be paying £1100 + your £1000 voucher to get that bike.

If a bike retailed at £1000 but had 20% off making it £800 the shop couldn't take another 10% hit on the £800 as that would be the margin gone. In the end the shop want £800 for that bike if they sold it normally so a voucher of £888 would be required for the shop to be paid the £800 they always wanted for the bike.

Total cost of bike and accessories: £1000
Net cost of bike and accessories, including finance and admin costs (if applicable): £1000
Income tax saving over hire period: £400
Employee NI saving hire period: £20
Final cost of bike & accessories: £580
Total saving: £420
Gross salary sacrifice, based on 12 month hire period (this should be the figure displayed on your hire agreement): £83.33
Net salary sacrifice, based on 12 month hire period: £48.33
Percentage saving over RRP: 42%

£48.33 net x 12 months making it £580. Add to that the 7% fee as the bike is over £500 makes it £650 in total for a £1000 bike if you are a higher rate tax payer.
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ah, was working on 12% NI but as you say its 2% over the upper threshold :(
 
I've just done submitted my quote for this... opted for the Specialized Sirrus Sport hybrid bike. Works out pretty good and looking forward to a better road based bike to ride to work!
 
We've had the scheme were I work for a few years, I got myself a Cube Acid MTB from it in 2010, great bike never had any trouble with it. I live around 7.5 miles from work so a 15 mile round trip in a day. I'll cycle to work any day the weather is good enough, as it's the only source of exercise I get these days :)
 
Rotty said:
ah, was working on 12% NI but as you say its 2% over the upper threshold :(
Click to expand...

For a lower rate paying it would be £200 + £120 NI.

£1000 - £320 = £680
£680/12 = £56.66 Pm
+ £70 fee = £750 at the end making it a saving of £250 and paying it over the year.

One of the only time it's better to pay the higher rate of tax.
 
My work place just sent out the email about this too. I'm eagaly awaiting the spec me a bike threads :D
 
Will never use again. More of a benefit for your company than you.

Got stung with the changes to the final payment halfway through my plan. If they change it again in 6 months time the changes affect you, not just new joiners.
To keep it at the end theres another 5 year lease with the final payment and they can still claim the bike back ( unlikely but its a possibility ), worth bearing in mind if your after a decent bike.
 
Isn't it up to the company what they value the bike at the end of it and down to their discretion if they make you pay for it? I know loads of people that didn't have to make the final payment making it a very cheap way in to a bike.
 
I came across another bloke last night who is doing the same but has totally chosen the wrong bike for the job.
He lives 7 miles from where he works and it is all road and he's gone and bought a heavy framed MTB with nice chunky tyres for the journey.
Mountain bikes are for mountains and riding over rocks & mud etc and not made for the road.
Before I said anything to him he started to moan that cycling was harder than he thought it was going to be and he thought modern bikes would be easier to cycle.
It was then I pointed out his purchase error.
 
I've just moved house and last week I cycled to the station for a few days. It's 3 miles each way and cycle paths for the entire trip.

I really enjoyed the ride and on the way home it is a bit tough going up the hill, but I quite like the work out.

At the moment I have borrowed an old mountain bike and I'm split as to whether to get a hybrid through the cycle scheme. Is it worth it for such a short distance and for only cycle paths?
 
Em3bbs said:
I thought leftie union types hate any kind of tax avoidance. :eek:

Or is it fine when it's benefitting you?
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How about learning the difference between tax free and tax avoidance? Or do you think buying childrens clothing is also tax avoidance?

DanF said:
Isn't it up to the company what they value the bike at the end of it and down to their discretion if they make you pay for it? I know loads of people that didn't have to make the final payment making it a very cheap way in to a bike.
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The trouble is most companies (mine included) can't be bothered with the admin hassle (unsurprising as our HR is in Hungary and China!) so outsource it all to places like cyclescheme.co.uk who take a nice little commission slice and run the scheme themselves - the company really then have no say in how the scheme is run.
 
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