Cycle to work scheme?

[Trifid]

Hello.

I a trying to decide whether this is a good scheme or not?

If I were to, I'd probably get this bike: http://www.evanscycles.com/products/trek/15-triple-2010-road-bike-ec019720 but the savings after paying the 'keep' fee at the end seem to be 20% (I believe I still have to pay VAT on the bike with my employer). Which then leads to the problem of I may as well buy a second hand bike?

What are peoples thoughts?

Cheers.

 

[Trifid]

Most will get the bike VAT free and not included the cost of keeping the bike (10%).

 

[Trifid]

VAT free? I got a bike via one of these schemes a couple of years ago and it was a salary sacrifice setup, the cost of the bike (or vouchers to buy one with) is deducted from your annual gross salary, ie before tax and NI so it ends up costing you 30-40% less than the face value, also when I got mine I paid £26 on a £500 bike, just over 5%.

Sorry, I wasn't fully clear. The standard scheme appears to be VAT, Tax and NI free. You then pay for the bike over 12 months and to keep the bike you have to pay a ~10% 'disposal fee' to either keep the bike or for them to get rid of it.

The scheme my employer is offering (NHS) I still have to pay the VAT on the bike and the 10% charge at the end. It works out at about 23% off if my maths is correct.

 

[Trifid]

and should be vat free full stop.

http://www.bikeforall.net/content/cycle_to_work_scheme.php

2. His employer reclaims the VAT – reducing the cost to £383

Requires the employer to be able to reclaim VAT which the NHS can't reclaim it on everything. I believe this bike scheme is not exempt.

 

[Trifid]

It doesn't have to be Evans. I'm not sure if it is a option to get it from there either.

I don't think I'll make use of this scheme. It's not the best value and a high 'disposal' fee to keep the bike is not great either.