Confused with cycle to work scheme

Associate
Joined
14 Apr 2011
Posts
8
:confused:
Hi people, I'm a bit confused by the cycle to work scheme by the government.

Our company doesn't do it yet, but apparently its been brought up a few times, so a few of us are trying to get a bit of info together to go back to the board of directors..... so.......

Went on www.cyclescheme.co.uk/ entered my details for a £500 bike plus £50 helmet & £50 accessories.

It came back with (well as far as I can see) work will pay £345.66 upfront (again showing the 40-50% saving which was quoted).
Then I would sacrificie £28.81 p/mth for 12 months our of my wages - which is £345.72 (so this in theory pays back work).

Is the bike mine then after the 12months?
Only it goes on about 3% deposits for a further 3 yrs but then after this you get your deposit back?

When would I actually own the bike? or would I never??

Any help on this would be greatly appreciated!
:confused: :confused: :confused:
 
Lol.
I'd read all the FAQ's.
But, I was still a tad confused.
I expected that simply after the 12months - I'd own it, end of.

Simple enough - then at the end of the hire period it'll be down to the company to either sell it me @ full market value, or it went back to cycle scheme and I paid a refundable deposit of 3% of value of bike (which say is about £15) for another 3 yrs and then cycle scheme may offer it to me then again at a knocked down price at the end of that 3 yrs??

Does that make any sense?
 
Not sure how you do quotes -
3. How can employees still make a saving?

At the end of the hire period, Cyclescheme will contact employees to discuss the options available.

The most attractive option for employees will be to pay a small, refundable deposit (3% or 7% of the equipment value*) and continue to use the bicycle for an extended period of up to 36 months.

At the end of this period, if the employee does not wish to keep the bicycle, then Cyclescheme will refund the deposit in full. Alternatively, Cyclescheme may at its discretion, offer ownership of the bicycle to the employee at this point, and no further action or payment will be required if they wish to keep the bicycle.
 
He and his buddies came in and amended all the rules.
Under labour, it was completely different.
Last year I got a £700 bike using a Cycle Scheme voucher, and expected it to end up costing me around £400. We know from the comments that hundreds of you have signed up to similar deals, riding away brand new bikes which you thought you were getting at up to a 50% discount.

Alas, Her Majesty's Revenue and Customs has decided to spoil the party by changing (or at least clarifying) the rules, which means the lovely £1,000 carbon road bike you signed up for might not be quite the bargain you anticipated. Doomsayers suggest this could be the end of the very popular scheme.

What HMRC has done is expanded its "fair market value" guidance for the worth of secondhand bicycles. This matters because although most people think the bikes they get on the Cycle to Work scheme are theirs to keep from the moment they wheel them from the shop, the small print says they are actually hiring them from their employers. At the end of the scheme (which usually lasts 12-18 months), employees are given the opportunity to buy back "their" bike for "the full market value". Many firms have been suggesting for years that the full market value would be 5% of the original price tag. On that basis I expected to owe the Guardian £35 in November, when my participation in the scheme ended.

Under the newly clarified rules, detailed here, I am going to have to pay quite a bit more. And so is anyone else partway through the scheme, as well as anyone who signs up in the future. That's because the killjoys in the tax office have decided that a bike worth more than £500 new will be worth 25% of its original value one year on. So my £700 bike will be worth £175 on its first birthday. Truth be told, it's probably a better reflection of its actual worth, but it's still a whopping £140 more than I was expecting.
 
Back
Top Bottom