Cycle Scheme

[NickMiller]

Does anyone know a lot about this?

I am about to put it forward to my employer but want to check who actually owns the bike. I want to buy a bike but i'm not keen on paying my employer £30 a month if i don't actually own the bike at the end of 12 months.

Also - are firms obliged to do this if you ask. I work for a large firm so would have thought they would offer. Any tips on pitching it to your employer?

 

[RedBike]

I'm afraid the bike belongs to your employer until you buy it off them at the end of 12 months.

This website explains it quite well
http://www.bikeforall.net/content/cycle_to_work_scheme.php

Here’s an example of how Cycle to Work helped 'John':
1. Under his employer’s scheme, John chooses to have the loan of a bike retailing at £450
2. His employer reclaims the VAT – reducing the cost to £383

3. This net amount is met by John agreeing to a salary sacrifice whereby his gross pay is reduced by £21.28 per month over 18 months

4. The monthly net cost to John will be £14.26 because he doesn’tpay tax or national insurance on the gross pay (£21.28) that he has sacrificed

5. At the end of the 18 month period John’s employer offers the ex-loan bike for sale at a fair market price

e.g. £50 (To establish the fair market price, employers should obtain quotes from local bike shops as the value of the bike will partly depend on the level of use)

6. The cost to John is:

• Net salary given up £14.26 x 18 months = £256.68
• Cost to buy the bike at end of the period = £50
• Total cost to John (68% of retail price) = £306.68