Cycleplus ( cycle to work). A bit confused.

[JtB]

In my case it worked out to be a very cost effective way of purchasing a couple of bikes. The term was 18 months, as a higher rate tax payer my savings were greater and there was no final payment. I could not have matched those terms negotiating with a LBS. Also, if your bike gets stolen it makes no difference whether you are buying the bike through C2W or not, you are responsible for insuring it.

 

[vickster]

What bike are you looking at? You might find a sale price, maybe on last year's model and 0% finance

As about definitely unsure if c2w or finance, on c2w check fine details with HR

 

[glasgowcyclist]

as a higher rate tax payer my savings were greater

I've always thought that was the wrong way round and that lower earning taxpayers should have the greater incentive.
Certainly, in your circumstances, you'd be unlikely to negotiate as beneficial a deal with your LBS.

GC

 

[kiwifruit]

Have any of your colleagues used the scheme before? At the end of my term the residual value or whatever was written off as gift in kind.

Well the company did the c2w scheme about 6 yes ago and that was the old system before HMRC change it. My colleague did that then and he didn't pay any final payment.

 

[kiwifruit]

Indeed , if i was in a position to get a new bike ( yeah right like mrs ck is letting that happen ) i would be looking at getting an interest free loan or use a 12 month no interest credit card .I think planet x or ribble might even work out cheaper with the interest as there pricing is so good.

Reality check though it would be cycle to work as a way for me though as its the only way i will get one , 2018 marks a age related benchmark so im going to push for one then

Your right I might just get a 0% credit csrd and buy a bike, that's what I did with my last bike. I just thought this might same me some money.

Indeed , if i was in a position to get a new bike ( yeah right like mrs ck is letting that happen ) i would be looking at getting an interest free loan or use a 12 month no interest credit card .I think planet x or ribble might even work out cheaper with the interest as there pricing is so good.

Reality check though it would be cycle to work as a way for me though as its the only way i will get one , 2018 marks a age related benchmark so im going to push for one then

 

[kiwifruit]

What bike are you looking at? You might find a sale price, maybe on last year's model and 0% finance

As about definitely unsure if c2w or finance, on c2w check fine details with HR

Thinking about getting a whyte 801 mountain bike. As got road bike already.

 

[vickster]

Your right I might just get a 0% credit csrd and buy a bike, that's what I did with my last bike. I just thought this might same me some money.

Potentially, especially not if buying a reduced bike and then it's yours and you're not hiring from your employer and be beholden to them! Oh and you don't actually have to commute on the MTB

 

[User16625]

Even at 25% you get the discount on the bike, but IIRC the monthly payment comes out of your wages BEFORE tax. So you get some savings in tax too.

It's also worth noting that it may not seem "worth it". As the scheme isn't designed to get you a cheap bike, it is designed to help encourage people to cycle to work, by assisting in the purchase of a bike to do it

It would help encourage people even more by allowing them to get a cheap bike. Scheme is way too complicated as is IMO. I presume this puts many people off using it.

 

[Lozz360]

Kiwifruit,
What your HR person means is that you can extend the hire period for another three years for 7%. So the bike doesn't become yours until the end of the four years from you acquiring it, but then there is nothing more to pay. You can pay 25% after one year to transfer ownership to yourself, which you should do if you were then going to sell it. Agree its complicated.

 

[kiwifruit]

Kiwifruit,
What your HR person means is that you can extend the hire period for another three years for 7%. So the bike doesn't become yours until the end of the four years from you acquiring it, but then there is nothing more to pay. You can pay 25% after one year to transfer ownership to yourself, which you should do if you were then going to sell it. Agree its complicated.

I did thought this might be the case. Hiring it for 4 years is definitely a no no, and paying 25% after 12 months is not really a good saving.

 

[vickster]

Just buy a reduced bike outright

Discount cycles direct have good savings often on older Whyte models

 

[Lozz360]

As Vickster says, you could probably get a better discount deal if you are comparing it to taking ownership after one year and paying the 25%. With a C2W scheme it's a salary sacrifice so you save on your NI contributions as well as your income tax. Won't make a huge difference but as you are comparing you ought to add it to the mix.

 

[Brains]

My experience is most companies don't bother with the final payment.

Therefore a £1,000 bike costs you between £550 and £650 depending on amount of tax you pay
(Oddly the higher the rate of tax, the cheaper the bike)

 

[Lozz360]

My experience is most companies don't bother with the final payment.

Therefore a £1,000 bike costs you between £550 and £650 depending on amount of tax you pay
(Oddly the higher the rate of tax, the cheaper the bike)

But doesn't the final payment go the C2W scheme, not your employer? My knowledge is only one of a C2W customer so I could be wrong. I understand the procedure to be thus.

You get a quote from your LBS or warehouse bike dealer that operates the C2W scheme. Your employer pays this amount (£1,000 max) to the C2W scheme. C2W issue you a voucher and you go and collect your bike package. Employer then deducts amount from your salary so you save on income tax and NI over a 12-month period. The bike technically belongs to your employer as they have paid for it. Then at the end of 12-months the bike becomes the ownership of the C2W scheme who contact you and say you can own bike outright for a one off payment of 25% (if value is £500 - £1,000) or you can pay 7% of bikes value and extend hire for another three years (bike is now technically property of C2W scheme's) and after that period bike is then yours with nothing more for you to pay.

 

[kiwifruit]

Just buy a reduced bike outright

Discount cycles direct have good savings often on older Whyte models

Your right vickster I probably get an 0% credit card and buy a bike outright, that's what I did on my road bike. It was just I thought doing c2w could save me some money. I think for me doing c2w is more of a pain.