bike4work scheme

Hi folks, sorry for the ancient thread revival but...

I'm thinking of using the works bike4work scheme, anyone used it recently? Is it still the same as in this thread? Is it still beneficial Vs just going to a shop and buying one? Can you use the scheme on bikes that are discounted/on offer or does it have to be full price?
 
holy necromancer. I've never done it but I believe you get a voucher and I doubt that has restrictions on sale items. If you pay higher rate tax you'll see a greater benefit but even standard rate will give you a good saving.
 
Most bike shops will only let you use the voucher against full priced items - as the scheme provider (cyclescheme for example) only pass on a limited % of the voucher value to them - between 85 and 90% I think - so presumably this loss combined with discounted items would lead to them losing money in some cases.
 
You may want to check you can still get a voucher.

Funnily enough, i am also interested in getting a bike with a voucher. However it seems HMRC have removed the exemption about working from home for covid.

As we are all WFH and a bike needs to be used 50% of the time for work commuting for use of the voucher, you can't get one right now until clarified by HMRC.

That's the stance taken by my firm, hopefully yours hasn't done the same
 
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tlrBeta said:
You may want to check you can still get a voucher.

Funnily enough, i am also interested in getting a bike with a voucher. However it seems HMRC have removed the exemption about working from home for covid.

As we are all WFH and a bike needs to be used 50% of the time for work commuting for use of the voucher, you can't get one right now until clarified by HMRC.

That's the stance taken by my firm, hopefully yours hasn't done the same
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Seems it's on our yearly "work rewards" thing, it's 12 miles to work if they insist I'd do it as need to shift some weight and it'd certainly make me lol. I've heard it's a voucher thing but just it sure if I'll just go buy outright something that's on offer or even 0% interest of use the scheme because I don't know about other restrictions. E.g. I've heard if you leave the job within the year then you're liable for the full amount anyway
 
My works scheme seems a bit odd to the normal way. They will loan us £1000 towards a bike. So you buy a bike, give them the receipt then they give you back the money and the 'loan' comes out your salary each month for a year. I did it back in 2010 with a 28 mile commute but someone did the same thing recently.

P.S I lost so much weight from cycling in I stopped doing it 4 times a week and only did it once a week. Was getting far to close to 9 stone.
 
Dis86 said:
Careful with the bike4work scheme...really not as good as it used to be and it actually worked out cheaper for me to get my bike in a 10% sale.

The buyback charge at the end of the scheme has been increased massively.
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Not on the scheme I use, you just extend the 'loan' to 5 years and its free at the end.

@OP, best of luck finding any kind of half decent bike, prices have gone up and there is still a huge shortage. I ordered mine in June, it turned up in December and since then the prices have rocketed so I got lucky.
 
PapaLazaru said:
Not on the scheme I use, you just extend the 'loan' to 5 years and its free at the end.

@OP, best of luck finding any kind of half decent bike, prices have gone up and there is still a huge shortage. I ordered mine in June, it turned up in December and since then the prices have rocketed so I got lucky.
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How much do you pay over 5 years though? And what happens if you change employer in that period?
 
I've mentioned before on here, it didn't save me a lot of money and it was four years before it was my bike even though I paid it off in a year.
I then had to pay about £60 to keep it or send it back.
My second bike was cheaper just to look for good deals and get it on a zero interest loan.
On my 3rd bike which cost £800 RRP the shop were going to add £50 on for Cycle To Work but would charge me £700 if I just bought it on a zero interest loan.

I've just seen my post #23 and it ended up being the completely wrong bike for me, I ended up using it for 2 months and it's been in the shed ever since.
I gave that advice about what surface you ride on but then realised if only 10% of my commute is dodgy surface then a road bike is useless.
 
dLockers said:
How much do you pay over 5 years though? And what happens if you change employer in that period?
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I pay pre-tax over 12 months and that's it. The bike was £1750 and my net contribution is around £100 (cannot remember precisely), so well over £500 saving. The 'rental' agreement just gets extended to 5 years so there is no end payment. If I left within the 12 months, the outstanding would be taken from my final salary.

*edit* also told yesterday that I'm likely to be working from home permanently from now on so no cycling to work for me, though not sure I bought he right bike for a 15 mile road commute. :D

n3ovNx1.jpg
 
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PapaLazaru said:
I pay pre-tax over 12 months and that's it. The bike was £1750 and my net contribution is around £100 (cannot remember precisely), so well over £500 saving. The 'rental' agreement just gets extended to 5 years so there is no end payment. If I left within the 12 months, the outstanding would be taken from my final salary.

*edit* also told yesterday that I'm likely to be working from home permanently from now on so no cycling to work for me, though not sure I bought he right bike for a 15 mile road commute. :D

n3ovNx1.jpg
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Ah I see, so payment isn't extended over 5 years just the rental agreement is?

It does feel like an oddly constructed scheme! I guess skirting around the various tax and asset laws was tricky.
 
dLockers said:
Ah I see, so payment isn't extended over 5 years just the rental agreement is?

It does feel like an oddly constructed scheme! I guess skirting around the various tax and asset laws was tricky.
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Well exactly, but the government turn a blind eye as people are buying bikes which should in turn lead to healthier lifestyles.
 
I got my bike on Bike to Work scheme. 1k on the nose. Nice bike. Then I left my job a month later and they didn't charge me the full amount for it.

Free bike I guess.
 
Here is the details from my place, over 5 years:

20% payer:

1) Bike cost £500, actual cost (after NI saving) £289 - £8pm

2) Bike cost £2500, actual cost £1564 - £43pm



40% payer:

1) Bike cost £500, actual cost (after NI saving) £247 - £6pm

2) Bike cost £2500, actual cost £1334 - £37pm


Considerable savings.
 
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