cycle to work scheme.

[p90ade]

does anyone have a link or info on the cycle to work scheme aimed more at my boss because he seems very reluctant to sign up to it so i can get me a new bike.

 

[ianrauk]

The CycleScheme website has a page specifically for employers which puts things in plain and simple terms.
May be a good idea to order the free brochure if your employer doesn't want to read the web

 

[fudgedog]

Tell your boss it's very easy to set up, the form takes about 5mins to fill in and the admin of the schem is negligible. I run a small business (14 staff)and 5 of us have acquired bikes through C2W. Set him a challenge, the fastest bike we processed was 3 days from going to bike shop Monday filling in the forms, payment (direct to bank account far easier than waiting for cheques to clear) and receiving voucher and collecting bike on Wednesday

 

[Norm]

I can beat your three days by about 2 days and 23 hours, fudge.

Then again, I did set up the scheme and administer it myself, although there's only been one bike put through so far.

Which reminds me, my third and final payment went through the salary last week. Where's that link to the Specialized web site...

 

[Paul_Smith SRCC]

The CycleScheme website has a page specifically for employers which puts things in plain and simple terms.
May be a good idea to order the free brochure if your employer doesn't want to read the web

Those who work for a small business would also use Cycle to Work Scheme - Implementation guidance that is a link to the ‘DFT‘ site. Cyclescheme are generally used when employers have numerous employees, they simply use them to take over all the administration, where as a small business will often complete the administration themselves, which is infact far more simple and straight forward than many fear it to be, often no forms even need to be filled in, your employer simply needs to be able to show that the salary sacrifice relates to the bike purchase through the Cycle Work Scheme. Many employers already operate a salary sacrifice scheme for childcare, so they are already familiar with the procedure.

Don't forget your employer saves money as well; sadly it is not uncommon that many struggle to get this incentive.

Paul_Smith
www.corridori.co.uk

 

[p90ade]

How does the work save money? As I think that might help me sway the boss

 

[lazyfatgit]

I believe as the payments come from salary sacrifice, off your top line, they save on NI contributions. They also get a new, happier healthier employee.

 

[Norm]

Because your salary is effectively reduced, the employer's national insurance contributions are also reduced. They can also reclaim the VAT on the bike and, depending on the scheme, not pass that saving on to the employee.

From memory, those two together mean that the employers earns / saves approximately 35% of the amount your bike costs so, if you buy a £1k bike, they will save £350.

 

[p90ade]

Over what period do you repay the company? Can I not just pay the company in one go?

 

[Norm]

That is one of the things which you cannot do. The details depend on the company's scheme, read the guidance which Paul linked to above and download the PDF on that page. It had enough information for me to set the scheme up here.

 

[Norm]

The relevant details on the loan period is:

There is no fixed time period for which cycles and cyclists’ safety equipment must be loaned under a Cycle to Work scheme. Similarly, there is no fixed time period for which a salary sacrifice scheme must run where one is used to offset the cost of loaning the cycle and cyclists’ safety equipment.

Now, whilst it says there is no minimum, I took the above to mean that it cannot be paid in one lump, as that isn't a loan. My scheme's minimum period is 3 months, and maximum is 18 months. Given the number of these schemes which are running, and I don't know of any problems which have arisen from audits by the tax man, I think you can be fairly flexible.

 

[colinr]

It can be paid in one lump as long as your resulting page for the month isn't below minimum wage. Not sure if this is based on gross or net. However, 'unpaid sick leave' could bump up your hourly rate for the month

The one condition is that the 'fair market value' to buy the bike from your employer cannot be settled for at least 12 months.

This is what CycleScheme told me when I called them.

 

[sagefly]

I've just set our company up with Cyclescheme and it really is simple. the payroll office are familier with salary sacrifice schemes for childcare so the cycle scheme fits neatly into the proceses.

I'm didn't look at any short term payment options, the spread of payments over 12 months seems sensible. The monthly payments are minimal, the payment for buying the bike at the end of the hire period will be low enough to make it almost inconsequential or at least very affordable.

If you are looking at paying for the bike in a one off lump you need to make sure that your pay does not fall below the NMW of £5.80 per hour if you are 22 yo or above this is on the gross line of the payslip. There is real bother for the employer if they are found to have breached NMW a special unit from the old Inland Revenue has been contracted to BERR to go through records and to levy fines where applicable.

 

[Stephen-D]

I to have signed up with the Cycletowork scheme. my work have been doing it for some time but advertise it to much. i got £1000 for a sacrifice of £55 per month for 12 months. im happy at that! I just have to wait till March to get my voucher because apparently they only give out vouchers every quarter.

happy days though its a fantastic scheme and im actually going to ride it to work to

 

[Chrisc]

We're hoping, after months of badgering, to get the scheme set up at work. Looks promising now and ought to be in place in time for a new toy come spring!
The site says that an estimate of the final purchase price is around 5% of the original voucher so £50 on a £1k bike. Anybody who's been through it reckon this is what it roughly works out at?