Cycle to Work Scheme Question

[bpsmith]

It depends on the duration of the lease on your scheme. Ours is for 12 months only, which results in 18% for bikes less than £500 and 25% for those over £500. There’s no actual purchase charge involved, just a choice of:

1. Handing bike back.
2. Paying the % of the purchase cost.
3. Paying the tax on the % of the purchase cost.

Nobody ever chooses 1 or 2.

Option 3 comes out monthly over the following 12 months.

 

[Supersuperleeds]

It depends on the duration of the lease on your scheme. Ours is for 12 months only, which results in 18% for bikes less than £500 and 25% for those over £500. There’s no actual purchase charge involved, just a choice of:

1. Handing bike back.
2. Paying the % of the purchase cost.
3. Paying the tax on the % of the purchase cost.

Nobody ever chooses 1 or 2.

Option 3 comes out monthly over the following 12 months.

We have this plus a fourth option of extending the lease for another 3 years. Involves a one off payment of 3% of the bike price if it was under £500 or 7% if over £500. (You can do it for 4 and reduce the % to zero (under £500) or 2% (over £500))

At the end of that time the bike is yours and there is no benefit in kind.

 

[bpsmith]

We have this plus a fourth option of extending the lease for another 3 years. Involves a one off payment of 3% of the bike price if it was under £500 or 7% if over £500. (You can do it for 4 and reduce the % to zero (under £500) or 2% (over £500))

At the end of that time the bike is yours and there is no benefit in kind.

Probably the better option for those who like the bike that they have. Downside being that it may not suit those who want a new one very year. Nice to have options though.

 

[Supersuperleeds]

Probably the better option for those who like the bike that they have. Downside being that it may not suit those who want a new one very year. Nice to have options though.

The secondary lease falls outside of cycle to work so there is no stopping you getting another bike

 

[bpsmith]

The secondary lease falls outside of cycle to work so there is no stopping you getting another bike

Pretty cool deal all round then.