C2W

[BrianD]

Hi, first post!

Looking for a bit of advice, trying to decide if I can afford to do the cycle to work scheme.

I'm a normal 20% tax payer, anyone know how much I'm likely to pay per month if I take the full £1000

Cheers

 

[Norm]

There are a lot of variables.

If we assume a basic scenario, 12 month rental period, 20% tax, 12% NI and your earnings at a level that no thresholds are breached, your payroll deduction for the loan of the bike will be £83.33 per month and your take-home pay will drop by £56.67 per month or £680 over the 12 months.

 

[BrianD]

Yeah it should be a straight forward scenario, that figure would certainly be encouraging! Thanks for a swift reply, don't suppose you have any tips for persuading my better half? Ha

 

[Norm]

Sorry, you are on your own with that one.

 

[defy-one]

Yeah it should be a straight forward scenario, that figure would certainly be encouraging! Thanks for a swift reply, don't suppose you have any tips for persuading my better half? Ha

Man up! Lol

I persuaded it was better than paying for a gym membership i would never use. Losing over a stone in weight has proved getting a bike was a smart move. We also save a lot on diesel now!!

 

[billy1561]

Umming and aahing over the next bike and whether to get it on the cycle scheme. The 25% final payment is very discouraging!

 

[okeydokey79]

our cycle to work scheme for £1000 is £52. a month for 13 payments then 3 options 1=giv bike back(dont think so) 2= pay a final payment of 25%(18% if £500 or below) or 3= defer payment for 1 yr wait till tax code change then just pay the tax on the bike which i have been told would be £54 so 13x52 = £676 plus final payment £54 = £730 for a £1000 bike option 3 it is then

 

[biggs682]

my workplace are just starting to roll c2w out and first lot of figures i have seen do not encourage me at all

 

[rodgy-dodge]

have any tips for persuading my better half? Ha

Just show her a picture of Chris Hoy

 

[cyberknight]

Check your companies stance on C2W final payment, my company only charges us the standard tax rate on the 25% value so my £800 bike cost me
12x42 net=504
admin fee=30
final fee = 40
Total=574

 

[BrianD]

haha, that might very well sway her!

 

[cyberknight]

haha, that might very well sway her!

trouble is if you get serious you could end up like this ....

Or if you buy the gear and stick in in the shed ......

 

[BrianD]

trouble is if you get serious you could end up like this ....

Or if you buy the gear and stick in in the shed ......

Haha class! Already the second picture

 

[billy1561]

Does anyone know where the fair market value is paid to at completion? Does it go to the taxman or your company? If it were to go to your company would that then mean they make a profit out of the scheme?

 

[Norm]

Does anyone know where the fair market value is paid to at completion? Does it go to the taxman or your company? If it were to go to your company would that then mean they make a profit out of the scheme?

That would depend on your scheme. It wouldn't go direct to HMRC if you were paying FMV, but it might go to a third party such as CycleScheme, possibly. If it went to your employers, that could be a profit, depending on the details of your company's scheme and the level of monthly payments, for instance.

Your employers should already be making a profit, though, of the NI savings at the very least.