Cycle to work scheme

[A Biker]

Ok so what the quick run down on this.
Do I own the bike or is it lease ..??
Etc etc etc...

 

[cyberknight]

The place you work for officially own it until you make your final payment,if it gets nicked before then your still liable for the payments

 

[A Biker]

The place you work for officially own it until you make your final payment,if it gets nicked before then your still liable for the payments

AHH ok . Well if it get nicked from work it will be a staff member.
As they go in security area.
What sort of percentage is the final payment do you know?

 

[Slick]

Ok so what the quick run down on this.
Do I own the bike or is it lease ..??
Etc etc etc...

My supplier forgot to ask for the final payment for 2 bikes and eventually emailed me to say that they were now mine for no further payment.

You can still get a good deal if you have the cash, but this is worthwhile even if they do insist on the final payment.

 

[A Biker]

My supplier forgot to ask for the final payment for 2 bikes and eventually emailed me to say that they were now mine for no further payment.

You can still get a good deal if you have the cash, but this is worthwhile even if they do insist on the final payment.

I have sent the request for information to the HR department..

 

[annedonnelly]

With mine there was a percentage payment at the end of the period OR I could wait another three years and pay a much smaller percentage. I waited the extra time.

 

[Jenkins]

The first time I used it the bike was 'owned' by my employer for the first 12 months while I paid the salary sacrifice payments. Ater that for a small (or nil) one off fee the bike was then leased to me for a further three years, after which it becme my property free of charge.
The second time I don't know if it was a change of policy or just the different scheme supplier, but the same system applied for the first 12 months and then the bike ownership was automatically transferred to me with no further extended hire period or additional fee.

 

[bikingdad90]

Each scheme depends on the agreement with your employer. Couple of different options:

12 month hire or in my case 24 month initially through salary sacrifice followed by an extended hire period with the cycle to work company for 4 years but the latter only happens once my employer sells the bike to the cycle to work people.

It means there is no fair value payment to make as it’s a 5 year hire before I own it.

 

[bikingdad90]

Other ways are:

Initial hire period and then P11D value for fair value from employer

Initial hire period and then buy outright at fair value from cycle to work provider

Initial hire period and return the bike, like a lease.

Initial hire period and then extend the lease for up to 4 years paying a sliding scale of fair values.

Employer does it all with no commission payable but they do need to be FCA registered.

Value available is now uncapped and set by employer, most either use £1000 as this was the old option or another limit set by them.

 

[GeekDadZoid]

We use green commute initiative so the bike is never owned by the employer but by GCI, the employer pays them for the voucher upfront and then collects the amount as salary sacrifice.

GCI lease the bike to you for 12 months, then automatically extend if for another 4 years with no final payment.

For a smaller company they are fab as there is very little paperwork or input needed at the company level.

 

[A Biker]

Thanks
There are plenty of wombles in The Human Retard department so I'll see what they come up with.

 

[Kingfisher101]

How much discount off the price of the bike do you get please? is it 40% and what if you leave the employer do you then just give them a lump sum to cover the outstanding amount?
Loads of people get these them sell them straight away I see it all the time.

 

[vickster]

How much discount off the price of the bike do you get please? is it 40% and what if you leave the employer do you then just give them a lump sum to cover the outstanding amount?
Loads of people get these them sell them straight away I see it all the time.

You don’t get a discount on the bike but you pay for it pre tax so that’s where the saving comes from. Not paying for from taxed income.
It’s not allowed to sell before paid off as technically it belongs to the employer/scheme provider. Obviously plenty of people couldn’t care less about rules if there’s a quick buck to be made.
Someone on another forum was trying to sell two folders just bought on C2W. He was very quickly challenged by the moderators and withdrew the ad

 

[Dadam]

We use green commute initiative so the bike is never owned by the employer but by GCI, the employer pays them for the voucher upfront and then collects the amount as salary sacrifice.

GCI lease the bike to you for 12 months, then automatically extend if for another 4 years with no final payment.

For a smaller company they are fab as there is very little paperwork or input needed at the company level.

Same for us but we're on cyclescheme. Mine was over 3 years lease due to the cost, though we had the choice between 1, 2 and 3 years. AIUI the final lease payment isn't tax deductible so if you go for the 1 year option you don't get as much discount. A longer period means the bike's market value and hence final lease is lower. So more of the total cost you pay is on salary sacrifice.

How much discount off the price of the bike do you get please? is it 40% and what if you leave the employer do you then just give them a lump sum to cover the outstanding amount?
Loads of people get these them sell them straight away I see it all the time.

It's only 40% if you're a high rate taxpayer and your gross salary after the salary sacrifice reduction is still over the 40% threshold, and you choose a long lease period so the final lease is very low. Even so I don't think it would quite hit exactly 40% in the best scenario.

It's not necessarily the cheapest way to buy, especially now with a lot of discounts around and using e.g cashback credit cards.

Selling it is a bit daft. For a small profit you've broken the terms of a contract and you're still on the hook for the cost of the bike for years. If you leave the job you have to pay. It's also not really a financial win unless it's a desirable bike and you can get near full retail for it. People abusing it like this is likely to get the scheme canned or reduced.

 

[cyberknight]

If your a basic tax payer view it as an interest free loan assuming you pay the full final valuation fee your not saving much , as said above if you extend the period at the end then your basically saving that amount .
My place basically charges us £30 final fee then the rest is classed as a benefit in kind for tax purposes so 20 % of that final valuation fee is paid over a year .