Cyclescheme dilemma

[lawrence281]

Howdy, so I’ve started a job where there’s a cycle scheme, so the problem is, the scheme is cheapest at a 4 year deal but I intend to stay here 1 year or 2 years max.

Obviously I’d pay the discounted savings through my salary leading up to it but then have to pay the rest at the normal rate.
Any way to go about this or is there any sort of better scheme than the 4 years?

also maybe are dealers can be negotiated under the pretence of pay in full instead of using the scheme but acknowledge we could use as leverage to get it at the same discount with less hassle?

The bike id like to get is roughly 3k, I’d like to hear your thoughts x

 

[Deleted member 66701]

https://help.cyclescheme.co.uk/article/50-what-happens-if-i-leave-employment

As for 3k - is your employer signed up to the no limit? a lot of employers still have the old 1k limit.

As for negotiating a deal - I wouldn't bank on it, demand for bikes is still through the roof atm. Even finding the bike you want can be a chore.

 

[turbot1984]

Howdy, so I’ve started a job where there’s a cycle scheme, so the problem is, the scheme is cheapest at a 4 year deal but I intend to stay here 1 year or 2 years max.

Obviously I’d pay the discounted savings through my salary leading up to it but then have to pay the rest at the normal rate.
Any way to go about this or is there any sort of better scheme than the 4 years?

also maybe are dealers can be negotiated under the pretence of pay in full instead of using the scheme but acknowledge we could use as leverage to get it at the same discount with less hassle?

The bike id like to get is roughly 3k, I’d like to hear your thoughts x

Presumably your employer will clobber you for tax owed if you leave early, not sure they are that switched on though? Maybe ask HMRC about the rules?

 

[Robi_uk]

Howdy, so I’ve started a job where there’s a cycle scheme, so the problem is, the scheme is cheapest at a 4 year deal but I intend to stay here 1 year or 2 years max.

Obviously I’d pay the discounted savings through my salary leading up to it but then have to pay the rest at the normal rate.
Any way to go about this or is there any sort of better scheme than the 4 years?

also maybe are dealers can be negotiated under the pretence of pay in full instead of using the scheme but acknowledge we could use as leverage to get it at the same discount with less hassle?

The bike id like to get is roughly 3k, I’d like to hear your thoughts x

I think you actually pay for the cycle over 1 year, and then you have an agreement in place for remaining 3 years(don't pay anything) you just pay a small fee to take ownership. At least that's how Cyclescheme.co.uk works, I got a bike through them in Jan. After the first year the scheme will contact you, no more salary sacrifice and doesn't matter if you move jobs.


Here is a snip from site: https://www.cyclescheme.co.uk/employers/employer-updates/hmrc-update

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 accessories value*) and continue to use the Cyclescheme package for an extended period of up to 36 months.

At the end of this period, Cyclescheme will refund the deposit if the employee does not wish to keep the package. No further action or payment is required if they wish to keep the package.

* the lower figure is for packages of less than £500 and the higher is for packages of £500 or more. These figures include VAT.

 

[lawrence281]

I think you actually pay for the cycle over 1 year, and then you have an agreement in place for remaining 3 years(don't pay anything) you just pay a small fee to take ownership. At least that's how Cyclescheme.co.uk works, I got a bike through them in Jan. After the first year the scheme will contact you, no more salary sacrifice and doesn't matter if you move jobs.


Here is a snip from site: https://www.cyclescheme.co.uk/employers/employer-updates/hmrc-update

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 accessories value*) and continue to use the Cyclescheme package for an extended period of up to 36 months.

At the end of this period, Cyclescheme will refund the deposit if the employee does not wish to keep the package. No further action or payment is required if they wish to keep the package.

* the lower figure is for packages of less than £500 and the higher is for packages of £500 or more. These figures include VAT.

Brilliant, thanks, been in talk with my procurement officer and she’s going to contact them to raise the limit and go from there.

 

[lawrence281]

https://help.cyclescheme.co.uk/article/50-what-happens-if-i-leave-employment

As for 3k - is your employer signed up to the no limit? a lot of employers still have the old 1k limit.

As for negotiating a deal - I wouldn't bank on it, demand for bikes is still through the roof atm. Even finding the bike you want can be a chore.

We have the 1.5k limit but can have a consultation and raise it thankfully!