Cycle to work scheme

[hatler]

If you're a 40% tax payer and were willing to continue the hire scheme after the first year, then there were some pretty good savings to be made. I saved around £300 on my commuting bike for example.

Sorry, I should have qualified that. My company only runs the scheme on a year's pay back, therefore savings are marginal. Where pay back periods are longer, savings are greater.

 

[martint235]

Sorry, I should have qualified that. My company only runs the scheme on a year's pay back, therefore savings are marginal. Where pay back periods are longer, savings are greater.

Ah. IIRC the one year buy back is about 25% isn't it? That would wipe out all the savings pretty much for a lower rate taxpayer and could possibly actually leave you out of pocket when you add in Planet X's administration fee.

 

[raleighnut]

I think it's a shame that you cannot simply buy a new bike in order to cycle to work and send the receipt (or a copy) to the income tax office who then adjust your tax code accordingly. Admittedly it could be open to abuse but if there was a limit to how often you could claim for a new bike (3yrs?) and a similar limit on expense it should work equally 'well' for everyone and not just those who are lucky enough to work for a company that supports this scheme.
After all the current system is taken advantage of by people who just want N+1 already.

 

[w00hoo_kent]

For the less financially savvy amongst us, I think it was just a good incentive to buy a bike that wasn't going to be more hassle than it was worth and put us off of riding for good.

I doubt I made much of a saving on mine (but being less financially savvy I've never actually bothered to try and work it out) but it was relatively hassle free and being a financial doofus because the money just disappeared each month before I saw it, it barely felt like I was paying for it. If I'd had to do the graft myself, I might just not have bothered (although I was pushing myself on the 'get fit' thing as well so that might have been motivation enough, we'll never know.)

 

[Pale Rider]

Seems to me 'savings' on the scheme are too dependent on how the employer operates it.

If all the - far too complicated - rules are followed, their can be little benefit to the employee.

As has been observed, getting a discount on the bike and an interest free loan via a zero per cent deal on a credit card is often just as cheap, if not cheaper.

So the scheme should be scrapped.

But I hope it's replaced by a simple one which offers the greatest benefit to those on lower incomes.

 

[jowwy]

I saved bucket loads on our c2w scheme - evans allow sale bikes in the scheme, so my bike was reduced from 1250 to 950, less the 32% c2w saving and after 12mths the bike was gifted in kind via p11d......win win

 

[hatler]

Ah. IIRC the one year buy back is about 25% isn't it? That would wipe out all the savings pretty much for a lower rate taxpayer and could possibly actually leave you out of pocket when you add in Planet X's administration fee.

Yes, 25%. My calculation showed that there was an approx. £100 saving on a £1k bike, once the Cyclescheme 10% and the scheme administrator's £135 had been taken out.

 

[barachus]

I dont understand all the doom and gloom posts about minimal savings and 'admin costs', what admin costs?
you can also shop around for a reduced bike and then buy it with scheme to save even more
I saved over 40% on my road bike, with such a great saving that i am going put in for another scheme today to get a commuter bike just in case they really scrap it

 

[hatler]

I dont understand all the doom and gloom posts about minimal savings and 'admin costs', what admin costs?
you can also shop around for a reduced bike and then buy it with scheme to save even more
I saved over 40% on my road bike, with such a great saving that i am going put in for another scheme today to get a commuter bike just in case they really scrap it

It's not doom and gloom. It's just the facts. My company don't administer the scheme. They sub it out to a 'benefits administrator'. They charge (not unreasonably) for that service. £135. Cyclescheme hand over a £1000 voucher to the applicant. Applicant hands over voucher to shop and walks out with a £1000 bike. Retailer passes voucher to Cyclescheme. Cyclescheme hand £900 to the retailer.

That's £235 gone missing straight away.

 

[barachus]

The road bike wasn't a commuter bike then?

No

It's not doom and gloom. It's just the facts. My company don't administer the scheme. They sub it out to a 'benefits administrator'. They charge (not unreasonably) for that service. £135. Cyclescheme hand over a £1000 voucher to the applicant. Applicant hands over voucher to shop and walks out with a £1000 bike. Retailer passes voucher to Cyclescheme. Cyclescheme hand £900 to the retailer.

That's £235 gone missing straight away.

ok my apologies, i wasnt aware different companies just apply it in so many different ways, so you are liable to pay an admin fee of £135?
but the retailer takes the hit on the £100 and not you? you still get a bike priced at the sticker price, you dont have to make up the difference?
from my experience, I paid no admin fee and and whether the retailer took a hit or not, i wasnt invovled in that or had to make up the difference

 

[mythste]

I dont thinkg I can see it being scrapped. Too much money going into a lot of LBS'.

It would lead to a lot of store closures, I'm sure. The shop I got mine from said that almost 50% of their £500-£1000 bikes are being sold through the scheme.

 

[Pale Rider]

No


ok my apologies, i wasnt aware different companies just apply it in so many different ways, so you are liable to pay an admin fee of £135?
but the retailer takes the hit on the £100 and not you? you still get a bike priced at the sticker price, you dont have to make up the difference?
from my experience, I paid no admin fee and and whether the retailer took a hit or not, i wasnt invovled in that or had to make up the difference

My local bike shop will only do cycle to work bikes at full price.

They would usually offer about 10 per cent cash discount on a bike.

So on a £1,000 cycle to work bike, the customer is 'paying' the £100 admin fee.

A clearance bike on cycle to work - as obtained by @jowwy above - is a better bet.

 

[Berk on a Bike]

It seems to me C2W is just a way of scratching the N+1 itch.

 

[hatler]

ok my apologies, i wasnt aware different companies just apply it in so many different ways, so you are liable to pay an admin fee of £135?
but the retailer takes the hit on the £100 and not you? you still get a bike priced at the sticker price, you dont have to make up the difference?
from my experience, I paid no admin fee and and whether the retailer took a hit or not, i wasnt invovled in that or had to make up the difference

The admin fee is sucked out of the monthly payments you have to make.

I end up with a bike with a sticker price of £1000 (which I could actually have bought for £900 cash) and my 12 monthly payments total about £800.

 

[barachus]

So just a simple bit of fraud then?

lol yep, i knew you were just dying to reach this point