"Cycle to Work" Govenment scheme

[jonny jeez]

Sorry if this is a regular question, but put simply.

"Does it work"?

Jonny

 

[summerdays]

Yes

 

[Downward]

Works ?
In what way ?

 

[fossyant]

Yup, you save some cash on a new bike !

 

[Panter]

It certainly does, saved a fortune on my Trek 6700

 

[HF2300]

Yes What Fossyant said. You save really quite a lot of cash (40% typically).

Do a search, there's quite a lot of information about the ins and outs on here.

 

[jonny jeez]

Thanks,

I used an online calc tool ( I think it was evans cycles one) and saw a £650 saving on a £1100 bike...that's a BIG chunk-a-cash to not have to find.

Does anyone know if you can you settle the residual in cash or do you have to take the govnt loan thing (directly from salary)

Look at me, I'm shopping already and haven't pedaled an inch yet!!!!

cheers

Jonny

 

[upandover]

It has to go through your salary. If you leave partway through, you pay off what's left, including the tax.

Cheers
Steve

 

[Cubist]

Yep, you have to do it by salary sacrifice, otherwise you can't enjoy the "before tax" benefit. Basically they take it off your gross salary before stoppages, so in effect you save the income tax you would have paid on the price. You can't guarantee that level of taxation, so it has to be done month by month.

 

[gaz]

So basically the saving you make depends on how much tax you pay.

 

[Cubist]

So basically the saving you make depends on how much tax you pay.

Yes, that's right. I know some guys whose wages were hovering just under the higher threshold, and went out and spent to the limit as they knew that there was a good chance that as they were in a job where they could earn virtually unlimited overtime, they would make a huge saving. Only trouble was their department overspent and had its budget cut. No overtime meant they only saved 20%.

 

[g00se]

Works really well - watch out for the small print though. If you leave before its all paid off, you will have to pay the remainder back in one go AFTER tax. Similarly, if it's stolen, you have to pay the remainder back too - so make sure it's properly insured.

Most seem to have you pay it off over 12 months - but the bike is being leased to you over 36 months. Once the 36 months is over you pay a nominal fee to purchase the bike off of your employer - after three years, that's about 5-10% of the purchase price. However, if you have to buy it off of them early (see above) then that final value might be a lot higher.

So make sure you're planning to stay at your company, otherwise you could end up loosing most of the savings.

BUT one good thing is you can add accessories to the price too - so don't forget to add pumps, helmets, lights etc - and get the same savings on those too.

 

[summerdays]

Most seem to have you pay it off over 12 months - but the bike is being leased to you over 36 months. Once the 36 months is over you pay a nominal fee to purchase the bike off of your employer - after three years,

I've not seen anything about 36 months - Mr Summerdays paid off his bike at the end of the 12 month period so I assume its his now.

 

[gb155]

Works really well - watch out for the small print though. If you leave before its all paid off, you will have to pay the remainder back in one go AFTER tax. Similarly, if it's stolen, you have to pay the remainder back too - so make sure it's properly insured.

Most seem to have you pay it off over 12 months - but the bike is being leased to you over 36 months. Once the 36 months is over you pay a nominal fee to purchase the bike off of your employer - after three years, that's about 5-10% of the purchase price. However, if you have to buy it off of them early (see above) then that final value might be a lot higher.

So make sure you're planning to stay at your company, otherwise you could end up loosing most of the savings.

BUT one good thing is you can add accessories to the price too - so don't forget to add pumps, helmets, lights etc - and get the same savings on those too.

Eh ? Thats a new one on me !

 

[Helly79]

I am using the bike to work scheme it confused me a bit at first, but I got my head around it and now a have a lovely bike which I wouldn`t have been able to afford otherwise.