Cycle to Work Scheme ?

[lejogger]

I joined our work Cycle scheme, its good if you can get over not owning the bike for 4 years but saving a couple of hundred

All dependant on the individual scheme...

 

[adscrim]

There was VAT clarification last year emaning that VAT needs to be accounted for on payments taken from salary as of 1 January 2012. As such, I believe that scheme members no longer get the VAT discount.

 

[lejogger]

There are no hassles with staff leaving after the first 12 months AIUI. They just keep on paying nothing until the 31 months are up.

You're probably right if it's run by an external company like Cyclescheme... if it's an in-house job then they may decide to offload when they leave resulting in a higher residual value owed... But I'm speculating...

 

[Leodis]

I got £1000 Cyclescheme voucher and pay £70 a month and after 12 months have the below options:-

1 - Give the bike back + pay for postage
2 - extend the hire period for another 3 years at 7% of the bike (not voucher) value
3 - Pay 25% of the bikes value to take ownership

You could really pay the 7% and then sell the bike though you are not allowed to, but after the extended 3 year hire period its yours or there abouts.

 

[lejogger]

There was VAT clarification last year emaning that VAT needs to be accounted for on payments taken from salary as of 1 January 2012. As such, I believe that scheme members no longer get the VAT discount.

Yes... unless the scheme started pre- July '11 whereby it can continue to completion as per original contract.

I think Matt's issue was to do with his company not reclaiming the initial VAT on the cycle therefore not passing on these savings to him at a point when this was possible.

 

[lejogger]

I got £1000 Cyclescheme voucher and pay £70 a month and after 12 months have the below options:-

1 - Give the bike back + pay for postage
2 - extend the hire period for another 3 years at 7% of the bike (not voucher) value
3 - Pay 25% of the bikes value to take ownership

You could really pay the 7% and then sell the bike though you are not allowed to, but after the extended 3 year hire period its yours or there abouts.

This is my issue with Cyclescheme... you pay £70 a month when really the most you should pay for £1000 should be £83.33 minus 20% tax, minus 11-12% NI = £57.50. Half of the savings you should be making are going into their pockets for providing a service you can do yourself or get for nothing.
They don't offer a unique service - the halfords scheme operates at no cost to you or your employer, an inhouse scheme would do the same and not restrict you to Boardman or Halfords equipment.

 

[adscrim]

Yes... unless the scheme started pre- July '11 whereby it can continue to completion as per original contract.

I think Matt's issue was to do with his company not reclaiming the initial VAT on the cycle therefore not passing on these savings to him at a point when this was possible.

Yes, but the OP needs to take it into consideration.

 

[lejogger]

Yes, but the OP needs to take it into consideration.

Definitely. I did try to mention this in my original post and the figures were calculated taking this into account, but it's worth emphasising

 

[Leodis]

This is my issue with Cyclescheme... you pay £70 a month when really the most you should pay for £1000 should be £83.33 minus 20% tax, minus 11-12% NI = £57.50. Half of the savings you should be making are going into their pockets for providing a service you can do yourself or get for nothing.
They don't offer a unique service - the halfords scheme operates at no cost to you or your employer, an inhouse scheme would do the same and not restrict you to Boardman or Halfords equipment.

I agree, Cyclescheme now add an admin fee of £67 on top of the 10% they make from retailers. I wouldnt have minded the Halfords option, my work pulled out of it and went to Cyclescheme last year. I questioned the fee and payments with HR and they basically turned around and said "You have seven days to return the cert if you want too"... Poor poor poor.

I did the "how much can you save" test, it said my payments would be £57 and when I checked my first paycheck it was £70 and again questioned it and got the same response from HR.

 

[jamin100]

I've been looking into this very recently (there's a thread somewhere) and I've decided against the scheme. Here's why;

For me I knew the bike I wanted, the boardman cx retailing for £1000. My c2w scheme used halfords which was fine as that's where the boardman was from.

Anyway I've figured that buying the bike on the scheme over 4 years would cost me around £700 - £750ish and I would own the bike after the 4th year.

However, I have brought that bike for £730 outright from halfords. Here's how.

The bike currently has 10% knocked off bringing the price down to £899. Then use code nusfeb12 to get another 10% off bringing the cost down too £810.

Finally join British cycling and you can get halfords vouchers for 10% less than there face value.

So I brought £810 worth of vouchers for £729 I also could have another £30 being tracked through quidco which if it pays will bring the total cost down to £699 but that's not guaranteed.

If your looking for a bike from halfords then work the prices out first using the discount and it may work better & you'll own the bike straight away.

I've put my £730 on a 0% credit card and am paying £60 a month over 12 months to pay it off.

 

[Norm]

Definitely. I did try to mention this in my original post and the figures were calculated taking this into account, but it's worth emphasising

Yup, lejogger has it right... although the
VAT figures were wrong in your first reply.

 

[lejogger]

Yup, lejogger has it right... although the
VAT figures were wrong in your first reply.

Oops... Do the company not claim back std rate VAT at 20%?

 

[lejogger]

I've been looking into this very recently (there's a thread somewhere) and I've decided against the scheme. Here's why;

For me I knew the bike I wanted, the boardman cx retailing for £1000. My c2w scheme used halfords which was fine as that's where the boardman was from.

Anyway I've figured that buying the bike on the scheme over 4 years would cost me around £700 - £750ish and I would own the bike after the 4th year.

However, I have brought that bike for £730 outright from halfords. Here's how.

The bike currently has 10% knocked off bringing the price down to £899. Then use code nusfeb12 to get another 10% off bringing the cost down too £810.

Finally join British cycling and you can get halfords vouchers for 10% less than there face value.

So I brought £810 worth of vouchers for £729 I also could have another £30 being tracked through quidco which if it pays will bring the total cost down to £699 but that's not guaranteed.

If your looking for a bike from halfords then work the prices out first using the discount and it may work better & you'll own the bike straight away.

I've put my £730 on a 0% credit card and am paying £60 a month over 12 months to pay it off.

Sounds like you've done well... The scheme is good but of course there are ways it can be beaten if you're happy to invest the time. I got the CX as my second C2W bike last year btw and have been pleased on the whole.
We didn't opt for the extended 4 year scheme though as you can tell from my first post. Do you have the option of the BIK with your company or are you stuck with the extended contract?

 

[400bhp]

I've been looking into this very recently (there's a thread somewhere) and I've decided against the scheme. Here's why;

For me I knew the bike I wanted, the boardman cx retailing for £1000. My c2w scheme used halfords which was fine as that's where the boardman was from.

Anyway I've figured that buying the bike on the scheme over 4 years would cost me around £700 - £750ish and I would own the bike after the 4th year.

However, I have brought that bike for £730 outright from halfords. Here's how.

The bike currently has 10% knocked off bringing the price down to £899. Then use code nusfeb12 to get another 10% off bringing the cost down too £810.

Finally join British cycling and you can get halfords vouchers for 10% less than there face value.

So I brought £810 worth of vouchers for £729 I also could have another £30 being tracked through quidco which if it pays will bring the total cost down to £699 but that's not guaranteed.

If your looking for a bike from halfords then work the prices out first using the discount and it may work better & you'll own the bike straight away.

I've put my £730 on a 0% credit card and am paying £60 a month over 12 months to pay it off.

That promotion code doesn't work.

The British Cycling vouchers can only be used instore. The offer on the bike seems to be on internet purchases.

How did you get these offers?

 

[Norm]

Oops... Do the company not claim back std rate VAT at 20%?

Yes, but it's 20% of the net price, you did it at 20% of the gross.

If the price paid was £1000, that would be £833 net and £167 (which is 20% of £833) VAT.