I like Skol
A Minging Manc...
- Location
- Sunny Ashton-under-Lyne
See, straight away, a huge misunderstanding. The employer owns the bike at the end of the 12 months unless you buy it from them!!!!
C2W advice required...
- Thread starter User
- Start date
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See, straight away, a huge misunderstanding. The employer owns the bike at the end of the 12 months unless you buy it from them!!!!
hopless500
Trundling along
- Location
- not-as-flat-as-you-think Norfolk
Not any more. I got mine like that, and so did my OH, but now the rules have changed. I administer the scheme at our place, and it's now got so convoluted, I'd rather buy a bike without the C2W.
JKility
Regular
- Location
- Halfords Bikehut, Bristol
Just so you all know, when I talk about the C2W scheme, im talking about the Halfords C2W and not any of scheme such as B2W.
I've got my Boardman on C2W, great for me as there would be no other way for me to get a new bike at that price (I cant afford to buy out right). Technically the company will always own it, whats supposed to happen is once you pay for the bike over the year, for it to be yours you have to pay a fee which is dis vised between you and the company. Problem is, if you dont pay, the company would have to take the bike from you and they'll have nothing to do with it except throw it in a bin so would rather you keep it once you pay the 12 months off, it all depends from company to company
I've got my Boardman on C2W, great for me as there would be no other way for me to get a new bike at that price (I cant afford to buy out right). Technically the company will always own it, whats supposed to happen is once you pay for the bike over the year, for it to be yours you have to pay a fee which is dis vised between you and the company. Problem is, if you dont pay, the company would have to take the bike from you and they'll have nothing to do with it except throw it in a bin so would rather you keep it once you pay the 12 months off, it all depends from company to company
JKility
Regular
- Location
- Halfords Bikehut, Bristol
In a weird way kind of, but it depends on company from company on if you pay them at the end or not, 95% of companies dont care
I'm a little confused that your HR dept would want to charge you the quoted amounts.
If they want to make a profit from the scheme then sure, as per the HMRC guidelines they're more than entitled to charge what they state.
However, if they just want to recoup their outlay but still remain au fair with the protocol then (assuming the hire repayments cover the cost of the voucher, but it still doesn't matter if they don't) all they need to do about the residual value is declare the £534 as a benefit in kind on a P11d and you will have to pay tax on that amount rather than pay the whole lot. It's the sensible way to do it, otherwise you're not getting any financial benefit from the scheme, and what are they going to do with £500? Buy part of a bike shelter?
If they want to make a profit from the scheme then sure, as per the HMRC guidelines they're more than entitled to charge what they state.
However, if they just want to recoup their outlay but still remain au fair with the protocol then (assuming the hire repayments cover the cost of the voucher, but it still doesn't matter if they don't) all they need to do about the residual value is declare the £534 as a benefit in kind on a P11d and you will have to pay tax on that amount rather than pay the whole lot. It's the sensible way to do it, otherwise you're not getting any financial benefit from the scheme, and what are they going to do with £500? Buy part of a bike shelter?
[QUOTE 2584118, member: 1314"]We have a new hr person in post who's still trying to get to grips with the thing - there's no other reason...I may have a quiet word with my boss, who can talk to Head of HR as wel to smoothing things through with a minimum of fuss.[/quote]
I've run our scheme for the last 4 years... It's not completely straight forward.
I'm pretty sure the reason ours works so well is because I used it for the first two years and had a vested interest in making sure it was (within the regulations) as fair as it could be to the employee as well as the employer.
If your company own the bikes and equipment rather than a third party scheme middle man (cyclescheme) or a finance company, then I'm certain you won't have to pay £500.
If, as it seems, your company want to remain the right side of HMRC guidelines, but aren't fussed about taking an additional payment from you if they don't have to, then the P11d route is perfectly acceptable/legal/auditable and you'll only have to pay 20% or 40% (tax bracket dependant) of that amount over 12 months.
I've written a paper to our board justifying this when HMRC changed the regulations and have links to various articles which can back this up. PM me if you need me to pass anything on.
I've run our scheme for the last 4 years... It's not completely straight forward.
I'm pretty sure the reason ours works so well is because I used it for the first two years and had a vested interest in making sure it was (within the regulations) as fair as it could be to the employee as well as the employer.
If your company own the bikes and equipment rather than a third party scheme middle man (cyclescheme) or a finance company, then I'm certain you won't have to pay £500.
If, as it seems, your company want to remain the right side of HMRC guidelines, but aren't fussed about taking an additional payment from you if they don't have to, then the P11d route is perfectly acceptable/legal/auditable and you'll only have to pay 20% or 40% (tax bracket dependant) of that amount over 12 months.
I've written a paper to our board justifying this when HMRC changed the regulations and have links to various articles which can back this up. PM me if you need me to pass anything on.
wiggydiggy
Guru
It entirely depends how you employer sets it up which confuses an already confusing scheme!
As for discount off RRP both my last C2W purchases were sale bikes but it is very dependent on the retailer....
As for discount off RRP both my last C2W purchases were sale bikes but it is very dependent on the retailer....
Wobblers
Euthermic
- Location
- Minkowski Space
[QUOTE 2633422, member: 1314"]What stuff?[/quote]
A bike with gears, if you're planning on going up hills?
Or how about stabilisers?
A bike with gears, if you're planning on going up hills?
Or how about stabilisers?
J.Primus
Senior Member
- Location
- Northerner living in London
My work C2W was really easy. Just 12 payments pre tax on my paycheque and then the bike is mine. No transfer fees or anything. Just made the last payment last month 
Soltydog
Legendary Member
- Location
- near Hornsea
Every scheme seems to be different & some folk think the way their employer runs it is the only way.
I've bought 3 bikes through the scheme, but dont think I'll buy another.
The first was 18 monthly payments & no final payment
, 2nd was 18 monthly payments + another 1 to buy the bike & last time, again over 18 months, but then had a final valuation figure based on my answers to 3 questions, a) how often do you use it, b) has it ever been serviced, c) what condition is it - Very good, good, average, poor or very poor 
I was worried I would have to pay a few hundred £ but in the end had to pay £85 on a £1200 bike, so wasnt too unhappy.
For higher rate tax payers its probably still a good scheme, but end of season sales & 0% hp/credit cards may be just as convenient
I've bought 3 bikes through the scheme, but dont think I'll buy another.
The first was 18 monthly payments & no final payment
, 2nd was 18 monthly payments + another 1 to buy the bike & last time, again over 18 months, but then had a final valuation figure based on my answers to 3 questions, a) how often do you use it, b) has it ever been serviced, c) what condition is it - Very good, good, average, poor or very poor I was worried I would have to pay a few hundred £ but in the end had to pay £85 on a £1200 bike, so wasnt too unhappy.For higher rate tax payers its probably still a good scheme, but end of season sales & 0% hp/credit cards may be just as convenient
ultraviolet
it can't rain all the time....
- Location
- Hythe, Kent, UK
Just finished my 5th cycle to work. I was lucky and opted for keeping the scheme going for a few years paying nothing and having the bike for nothing at the end of it.
The 'fair market value' as far as I'm aware is for the voucher, regardless if you brought accessories with part of the voucher value.
The 'fair market value' as far as I'm aware is for the voucher, regardless if you brought accessories with part of the voucher value.
[QUOTE 2698505, member: 1314"]Went to order and it expired on 4 October! It's a pro-forma invoice. Weird. Go and check out with HR tomorrow! I just assumed it would be valid for a few months. Oh well...[/quote]
I think it's 3 months for my scheme. Have they started taking the salary sacrifice yet? I'm sure you should be able to get them to extend or issue another.
I think it's 3 months for my scheme. Have they started taking the salary sacrifice yet? I'm sure you should be able to get them to extend or issue another.
