Cycle to Work Scheme - Over £1,000

[addictfreak]

It will be interesting to see how bikes with a rrp over £1k are valued at the end of the scheme. My current c2w bike was £1200, but the supplier discounted it to £1k as my original choice was on a stupidly long leadtime.
Our scheme runs for 18months so value should be less than 25%
It's the 3rd time i've used it, the first scheme never asked for a final payment, so I guess that bike still belongs to my employer my second one was for just short of a grand with all my accs & the final purchase price was around £50(1 months payment), so hopefully this one will end the same.

I used the £1000 voucher and put in £500 of my own. My final payment was £20.

 

[Paul_L]

I used the £1000 voucher and put in £500 of my own. My final payment was £20.

I suspect that was before HMRC got tighter with their recommendations (which were always there). £1,500 bike would now have a final payment of 25% = £375.

You did well!

 

[Red Light]

<br /><br />
<br />
I suspect that was before HMRC got tighter with their recommendations (which were always there). £1,500 bike would now have a final payment of 25% = £375.<br />
<br />
You did well!<br />

<br /><br /><br />

There is no need to make a payment after one year provided you continue to be employed. The employer can continue to let you use it for no charge and then you settle up a few years later when the HMRC fair value has dropped. After four years it's down to 7% for a bike originally over £500

 

[fossyant]

I just finished my scheme as the changes came in - I was the initial 'test' case for my employer. I also went a little over the budget, in cash with the shop, but that's OTT considering this was a FIXED...

 

[GrumpyGregry]

As pointed out above, the bike belongs to the employer, any money you paid is irrelevant for legal purposes or for calculating the final value.

I know of one chap locally who paid £750 of his own money on top of the £1000 on the voucher unknown to his employer. He was subsequently dismissed for gross misconduct (unrelated) a few months in. His employer has retained ownership of the bike, in fact the MD can be seen riding it from time to time, and their general stance is 'sue us'.

what's your take....?

 

[fossyant]

I know of one chap locally who paid £750 of his own money on top of the £1000 on the voucher unknown to his employer. He was subsequently dismissed for gross misconduct (unrelated) a few months in. His employer has retained ownership of the bike, in fact the MD can be seen riding it from time to time, and their general stance is 'sue us'.

what's your take....?

That's his own fault.......

 

[Norm]

I'd have thought that the Final Market Value would be based on the certificate value though - how would C2W know otherwise, if your friendly LBS was happy to accept cash for the difference?

There is no such thing as "C2W" to know anything. The requirements and administration of every scheme will be different.

Because the make and model of the bike are recorded on the scheme.

On some schemes, maybe, but by no means on all of them.

I think that you are both mistaking the Cycle To Work regulations (under which employers can design their own schemes for their staff to save money when buying a new bike) with Cyclescheme (a profit-making private organisation).

 

[Norm]

I know of one chap locally who paid £750 of his own money on top of the £1000 on the voucher unknown to his employer. He was subsequently dismissed for gross misconduct (unrelated) a few months in. His employer has retained ownership of the bike, in fact the MD can be seen riding it from time to time, and their general stance is 'sue us'.

what's your take....?

That he should read up a little more diligently before giving £750 to his boss.

 

[addictfreak]

I suspect that was before HMRC got tighter with their recommendations (which were always there). £1,500 bike would now have a final payment of 25% = £375.

You did well!

Overall I saved about 300 quid on the bike.

I doubt very much if I would use c2w again. I can probably save more by shopping around, and taking interest free credit.

 

[Paul_L]

Overall I saved about 300 quid on the bike.

I doubt very much if I would use c2w again. I can probably save more by shopping around, and taking interest free credit.

yeah i've done 2 on cyclescheme. wouldn't do another. just bought a third bike on 0% from the LBS.

 

[suecsi]

There is no such thing as "C2W" to know anything. The requirements and administration of every scheme will be different.

On some schemes, maybe, but by no means on all of them.

I think that you are both mistaking the Cycle To Work regulations (under which employers can design their own schemes for their staff to save money when buying a new bike) with Cyclescheme (a profit-making private organisation).

Apologies, yes I do mean Cyclescheme, who we used (in hindsight, it would be just as easy to handle it all ourselves, which is what I would suggest if I moved to a new company and was asked to set it up). An employee last year wanted to get a Brompton, was suggested Cyclescheme by the LBS (Fudges) and the rest is history.

I think it depends on the LBS you have - if it is a chain, then they tend to suggest a scheme, Cyclescheme or their own (I tried a Brompton in Evans, which is very convenient for here, but they have their own scheme and the company didn't see the point of signing up to more than one).

Next time I would go for some sort of low/zero % payment plan so that the ownership hassle isn't there.

 

[GrumpyGregry]

That's his own fault.......

That he should read up a little more diligently before giving £750 to his boss.

Ah. So the (somewhat more diplomatically put) advice I gave him was right.

 

[Norm]

Let me gues... "RTFM"?