Cycle2work scheme question

[mikeyw]

I'm about to buy a road bike through the C2W scheme - If I purchase a bike that is £800 in a shop I realise I will pay around £400 over the 12month period. However if that same bike was reduced to £500 in a sale could I still buy it through the scheme and pay approx £250 over the 12month period instead ?

Effectively I want to understand what happen to discounted (sale) bikes purchased through the scheme ?

Thanks in advance,
Mike.

 

[nickb]

Effectively I want to understand what happen to discounted (sale) bikes purchased through the scheme ?

AFAIK you get a quote for the bike from a shop and submit it with your application. If it's been reduced to £500, that's the price. Makes no difference to the scheme.

I'm about to do the same. The limit of the scheme at my firm is £1000. I went to a local shop and asked for the best road bike they could put me on for a grand - happens to be £1500 rrp that they're willing to let go of for £1000.

 

[sternwood]

I think your discount figures are off-base?

 

[rootes]

the bike is purchased by your company.. not you, though you will often arrange it.

if the bike costs £500 at the time of purchase thatis the cost irrespective of it being a sale price..

your hire over the twelve month period will equal the purchase price that your company paid minus VAT, divided by twelve

that montly hire value will be sacrificed from your salary and thus as you are getting paid less you will pay less tax and NI which is where the other 'saving' comes from.

 

[sternwood]

My bike was discounted so, because I had vouchers, I used the difference to get lock, pump, computer and panniers.

 

[nickb]

I think your discount figures are off-base?

??

 

[mikeyw]

Hey if this is true it corrects the mis-information i've been given before !

Sounds promising.

 

[rootes]

Hey if this is true it corrects the mis-information i've been given before !

Sounds promising.

full details of the scheme is on

DFT Website

 

[GFamily]

I think your discount figures are off-base?

I think it depends on what the top rate of tax is being paid. For someone paying at the 40% rate with NI reduction as well, it could achieve a 50p/£ discount.

 

[Norm]

Ooo, zombie thread, nearly 2 years old.

 

[GFamily]

Ooo, zombie thread, nearly 2 years old.

Ooops- noob here, so didn't realise that the 'similar threads' box included oldies.

 

[Norm]

No worries, just wondering why there was a C2W thread that I hadn't responded to previously.