Cycle to work scheme... Final payment?

[Fab Foodie]

Hi

We're looking into the cycle to work scheme for our workplace. Been looking at Cyclescheme as possibly the organisation to go with (for starters). The question that will be on many peoples mind id the issue of the 'Fair Market Value' of the bike after the loan period.

Does anybody have any experience of how this is calculated or how their employer deals with this?

 

[TheDoctor]

5% is a fairly common figure, I believe.

 

[GrumpyGregry]

bear in mind the employers does not have to offer this at all. nuts not to but apparently some don't

 

[joggingbob]

My employer charged approximately 5% at the end of the scheme period, (18 months).

 

[grhm]

It was a concern for some at my work. My employer seem to be using a figure of 3% of initial value or £20 which ever is higher. As far as I'm aware, this policy has never been published, so they can alter it if req'd by HMRC or other.

They also don't seem to want the bikes back. Technically the bike belong to the company and if you don't take them up on their offer to buy the bike at the 'Fair Market Value' the company need to take it off you. A colleague was presented with two choices when his year was up, pay ~£20 to own the bike or pay a ~£60 (i think) admin fee to cover the cost of collection/courier.


It still strikes me as odd that the company buys the bike, throughout the year pay for the cost of the bike and at the end they still own it and you have to buy it (again).

 

[redjedi]

My company (not mine personally or I wouldn't need to use C2W) didn't ask me for a single penny.
They said legally the bike still belongs to them for the next year (now down to about 5 months) but then they would just write it off.

It does help though, when one of the MDs also got a bike on the C2W scheme (£5000)

 

[beancounter]

I've got 8 of our staff on the C2W scheme and I'll be charging them a fiver each at the end of the 12 month "lease" period.

bc