Cycle2Work: getting round the £1000.00 limit.

[middleagecyclist]

Planning on next N+1 and work has a cycle to work scheme up and running at last. The steed i want is around £1500.00 but the scheme provider has a limit of 1K. They suggested if i can get a quote from a cycle store for 1K or less, even if the bike costs more, that will be fine with them. Has anyone done this and how grey are the legalities?

Thanks for any help

 

[400bhp]

Evans let you do it.

 

[gaz]

You have to get a quote for the bike before you get the voucher?

Not how it happened for me, I got a voucher for a grand and took it to Evans and spent 500 over the top of it.

 

[Paul99]

Just say that you went to a bike shop that gives a free bike fit with a £1500 bike. And then just say that they will sell you that £1500 bike for £1000 if you pay £500 for a bike fit. That's where I would get my bike from.

 

[GrumpyGregry]

It is VERY gray.

Many suppliers do it. Evans, Condor are two I know for certain, as well as a few to remain nameless lbs'. The limits haven't been revised since the scheme started and how much bike you get ofr £1000 has eroded over time. And so long as you don't get sacked or made redundant during the hire period you would probably be fine. But if you do, and the bike belongs to your employer and is only hired to you, that's potentially the last you'll ever see of your top-up payment. Of course if HMRC ever find out they'll argue you've breached the rules the deals off and can we have the income tax and VAT we're owed.

 

[glasgowcyclist]

It was my understanding that the £1000 limit related only to employers who didn't possess a consumer credit licence. Those who do can allow their employees to buy bikes & kit above that.

Or have I got that wrong?


GC

 

[middleagecyclist]

Just say that you went to a bike shop that gives a free bike fit with a £1500 bike. And then just say that they will sell you that £1500 bike for £1000 if you pay £500 for a bike fit. That's where I would get my bike from.

The price does indeed include a bike fitting (one of the reasons i am going with this localish
bike shop). £500.00 for a fitting? Good idea!

 

[Jdratcliffe]

are there multiply "cycle to work" schemes or is just the one? looking to convince employer to sign up want to help him choose the "best one" code the one if there is that gets the most off the price for me.

 

[rvw]

are there multiply "cycle to work" schemes or is just the one? looking to convince employer to sign up want to help him choose the "best one" code the one if there is that gets the most off the price for me.

There is one set of tax rules - here if you feel strong - and you don't strictly need to go through a "scheme" which is already set up. However, the benefit of doing so is that you get paperwork which you know is compliant with the rules already, rather than having to draft a new agreement.

There are multiple providers and - as far as I can see - very little to choose between them in terms of the service they provide. If you have a local bike shop, see if they are part of a scheme so that you can try things first!

And glasgowcyclist is right - the £1000 limit exists because, below that, employers don't have to have a separate consumer credit licence. The HMRC rules don't rule out expensive bikes per se.

 

[gaz]

It was my understanding that the £1000 limit related only to employers who didn't possess a consumer credit licence. Those who do can allow their employees to buy bikes & kit above that.

Or have I got that wrong?


GC

You have it wrong. They can only supply a voucher at the total amount £1,000. That doesn't mean the purchaser can't add more on top.

 

[billy1561]

Pick any bike you like up to 10k and get the Lbs to value it at £1000. You pay the difference and everyone is happy. It's not really an issue but the only fly in the ointment is insuring the new bike and then you only have a value of £1000 regardless of the payment.

 

[amaferanga]

You have it wrong. They can only supply a voucher at the total amount £1,000. That doesn't mean the purchaser can't add more on top.

Perhaps it depends on whose scheme it is, but the £1000 limit was originally only for employers without a consumer credit licence. I've had more than one bike through Cyclescheme that cost >£1000 - my employer had a consumer credit licence and the limit was much higher (and set by my employer I think).

 

[glasgowcyclist]

You have it wrong. They can only supply a voucher at the total amount £1,000. That doesn't mean the purchaser can't add more on top.

Now that I've checked again it appears I'm not wrong.

"The Office of Fair Trading (OFT) has issued a group consumer credit licence to cover Employers implementing Cycle to Work Schemes that are limited at £1000 inc. VAT per Certificate.

Employers who have their own Consumer Credit Licence Category B (consumer hire) can allow employees to request Certificates of a higher value."

See http://www.cyclescheme.co.uk/employ...at-is-the-maximum-value-bicycle-and-safety-eq



GC

 

[Paul99]

Pick any bike you like up to 10k and get the Lbs to value it at £1000. You pay the difference and everyone is happy. It's not really an issue but the only fly in the ointment is insuring the new bike and then you only have a value of £1000 regardless of the payment.

That's not correct. As long as you insure it for the correct amount you will be covered. For example if you bought your house for twenty grand thirty years ago, you must insure it for it's current value not what you paid for it.

 

[Zakalwe]

The limit is £1000 because an employer without a credit license can't lend a higher amount than that, nothing to do with any scheme's limit. It's better or everyone involved if third party schemes are avoided completely and it's set up through the company accountant, cut out the middleman as it were. Should a doddle for a half competent accountant to implement, remind them that they'll be saving money in their NI contributions as well as you.