Cycle to Work how much should I 'sell' the bikes for

[Lizban]

I run my works C2w scheme, time has come (and in fact passed) for teh users to either return or buy their bike. What price do you think is the lowest I can get away with selling these bikes to the users who want to keep them?

They rang from £450 - £850 bikes.

Thanks

 

[ianrauk]

isn't it usually at 5%?

 

[Grendel]

It's usually a nominal fee, if any at all. I think the small print says you may have to pay. I've had a few cycle to work deals and I've never had to pay anything.

 

[garrilla]

i've heard of some instances where they charge a 13th month as the final pay-off.

 

[Joseph]

I think I've heard 5% mentioned for a few of the schemes.

Legally speaking, you can't transfer the ownership for nothing - that would attract income tax at the value of the asset, so it has to be something you can defend to HMRC as a 'fair' value.

You can however let the cyclists continue to use the bikes at no charge, with the ownership staying with the company.

 

[iendicott]

It's 5% as I asked the same question to our finance team just yesterday.

 

[ACS]

With Edinburgh Bike Coop I understand it is just £1 (could be wrong I will find out in a couple of months)

 

[levad]

With Edinburgh Bike Coop I understand it is just £1 (could be wrong I will find out in a couple of months)

Is that because they only sell £20 bikes on the scheme

 

[tyllwyd]

I had a voucher for £700 and have just paid £40 for the bike and bits.

 

[Bristol Dave]

5% sounds about right. Mine cost £427 and I paid £20 for ownership.

BD

 

[jann71]

Not sure what percentage mine was - I had £550 bike and made a final payment of approx £23.

 

[Downward]

5% + VAT.

I'd get them all to bring in their bikes though to inspect that they have had a years worth of commuting !!!

 

[Brains]

A mates company charged £1 (big insurance company), another mates company charge 13th month, (a bank) I believe 5% is most common

 

[fossyant]

5% is the most common, thank goodness. My employers are sticking to that, phew.

 

[Bromptonaut]

Revenue requirement is "market value" and my employer, a major govt dept, will be asking for a valuation from a bike shop.