Cycle to Work scheme

[johnmillie]

Hi on the cycle to work scheme do you get to keep the bike after the year, i was reading about it and it says you are just hiring the bike from your company

 

[vickster]

Yes indeed, you normally have to pay a final nominal fee. For my company (Halfords scheme) it's £20 IIRC

 

[johnmillie]

So after they year you pay halfords a further £20 my work also use halfords

 

[Soltydog]

The payment is made to the company, as it's them you are 'leasing' the bike from. I didn't have to make an additional payment to keep the bike with my employer
As a rule tho they say the final payment will not be more than 1 months payment

 

[johnmillie]

Ok thanks iv just got to sign up to it now

 

[lanternerouge]

Has anyone purchased a second bike using the scheme? I phoned Evans cycles (with whom we do the scheme) and they said there is absolutely nothing to stop me doing this. Our finance department are refusing though.

 

[Flying Dodo]

There's nothing in the Government's rules against it, but if your finance department won't let you, then there's not a lot you can do about it unfortunately.

 

[lanternerouge]

Voila. I don't see what objection they really can have. They said, "we can, but we don't know if we SHOULD." Cheers!

 

[Norm]

So much misinformation, so little time.

I didn't have to make an additional payment to keep the bike with my employer

And, if you don't declare that on your tax return, you are guilty of tax evasion and liable to significant fines and a period at her majesty's pleasure, together with the distinct possibility that you will never work again.

And you are a tax cheat.

So after they year you pay halfords a further £20 my work also use halfords

The purchase price cannot be set in advance and, if you pay anything less than market value, you will be liable to pay tax on the difference.

 

[johnmillie]

So what happens after the year is up

 

[Norm]

The bike is offered for sale. The owner usually makes the first offer to the rider but there must be no agreed sale price at the start of the rental contract. And, if the sales price is below the market value of the bike, then the difference between the sales price and the market value is a taxable benefit which should be declared.

 

[Soltydog]

And, if you don't declare that on your tax return, you are guilty of tax evasion and liable to significant fines and a period at her majesty's pleasure, together with the distinct possibility that you will never work again.

And you are a tax cheat.

I've never filled a tax return in during my working life, so i've told no lies to the taxman I doubt i'll ever spend time at 'her majesty's pleasure' for the offence, surely it's my employer's fault & i'm sure the union would have a field day with it
I wont lose no sleep over being a tax cheat, I pay more than enough tax anyway

 

[The Jogger]

I used the scheme two years in a row and am about to upgrade again, this is an excellent scheme were everyone is a winner!

 

[diabach]

royal mail cycle2work scheme

sorry yet another question on this subject,,

the limit at present is £500 at royal mail to purchase at halfords.

can i use the voucher at anywhere but halfords and can i exceed the £500 with an additional payment, if not, why not. i can"nt get my head around the fact that it"s your money but can"t buy where you want to,!

has anyone used the scheme in the telford area and used a l.b.s of their choice and purchased above £500 limit..

many thanks dia............

 

[Soltydog]

can i use the voucher at anywhere but halfords and can i exceed the £500 with an additional payment, if not, why not. i can"nt get my head around the fact that it"s your money but can"t buy where you want to,!

I had this last time i used the scheme. The bike I wanted was over a grand & I was willing to stump up the extra, but because the company owns the bike & you just lease it you cant have part ownership ie paying some cash yourself with the scheme I'm sure there will be some shops willing to bend the rules on this though
Technically it's not your money you are spending with the voucher, it's your employer's