Cycleplus ( cycle to work). A bit confused.

[vickster]

Your right vickster I probably get an 0% credit card and buy a bike outright, that's what I did on my road bike. It was just I thought doing c2w could save me some money. I think for me doing c2w is more of a pain.

If you are a small or large, cyclesurgery have the Whyte reduced, and 0% finance so no faffing getting a credit card

http://www.cyclesurgery.com/whyte 801 2016//bikes-components-bikewear/fcp-product/63481

http://www.cyclesurgery.com/finance-options/content/fcp-content

If you need a medium, leisure lakes have for a little more, do finance too

http://www.leisurelakesbikes.com/14...currency=GBP&gclid=CMSgsuuq3c4CFYYy0wod5nwB0g

 

[Lozz360]

You're describing one way the scheme works. Not all companies or organisations do it that way. Lots will do it directly through their HR teams (mine does for exam0le) or through other local agreements.

As an aside, I'm not aware of any scheme where the bike becomes the property of the C2W provider. As far as I am aware, it remains the property of your employer and the agreement is between you and your employer.

It was just that in my case it was the C2W provider that chased me for the final payment. I had to pay it to the C2W provider online using a card. The options I had were I could pay 3% of the original value to extend the loan for another three years, 18% to transfer ownership to me straight away or pay nothing and return bike to the C2W provider.

 

[Lozz360]

There you go. The following is a direct copy from the email CycleScheme sent me.

"During your Extended Use Agreement with us, the Cyclescheme Package will remain the property of Cyclescheme Ltd, but you are free to use it as if it were your own. This does mean, however, that you cannot sell or dispose of the equipment during this time. It also means you are responsible for keeping it safe and secure, and continuing to use it mainly for commuting to work.

At the end of the Extended Use Agreement, we will contact you again to transfer the ownership of the Package to you - remember, there is no additional cost associated with this."

 

[vickster]

The Op's company uses Cycleplus not cyclescheme, so the Ts & cs could be quite different

 

[Slick]

I've been searching a few different threads trying to find out more on this scheme. I've emailed our HR department and talked to the scheme providers, and it's still as clear as mud. My brother reckons he got a good deal last year just on the tax and ni side of the deal. I've looked and looked, but just can't see the benefit. Can anyone explain to me how this c2w scheme is even still a thing?

 

[vickster]

Because the payments are taken from gross salary before tax and ni as salary sacrifice. If you were to buy the bike from taxed income, you'd be paying more for it

The savings are thus greater if you are a higher rate taxpayer

It used to be a better scheme as now there is a final payment for most providers

Each scheme is different but hr shouks give you the details of payments and savings

The one downside is that it costs retailers to redeem the vouchers, around 10% afaik and thus may not take them on discounted bikes as their margin is further reduced. Again depends on shop

 

[Slick]

We have to make our choice on additional benefits by the end of November I think. I tried last year to understand it and to make it work, but couldn't sort it in time. I was going to give it one more try, but I'm starting to think it's a lot more hassle than it's worth.

 

[vickster]

What bike are you wanting to buy? Are you planning on staying with your employer for at least 12 months

What deal could you get if paying 'cash'

If you do the c2w, make sure the bike is fully insured for full replacement value should the worst happen while still paying

It's not that difficult, apply, get voucher, buy bike, insure bike, probably make some saving but only in terms of tax paid which you may or may not notice in terms of take home (which of course will be less but you'll have a new bike to commute on). Or you could use savings which will be making bugger all in interest, have a new bike and have approx the same money going into your account every month

 

[Slick]

Not sure which bike yet, I am planning on staying with the same employer and I always get a discount when paying cash.

I've always done my own thing, don't know why I thought this would be any different, thanks.

 

[vickster]

Not sure which bike yet, I am planning on staying with the same employer and I always get a discount when paying cash.

I've always done my own thing, don't know why I thought this would be any different, thanks.

You won't necessarily get any discount on cycle to work though. Or paying outright for a bike esp a 2017 one

I don't follow your last sentence?

 

[Slick]

My last sentence relates to the fact that I have never relied on any leg up scheme for anything before, so I shouldn't really expect this one to be of benefit to me now.

In my experience, cash is still king. If I don't get a discount on big ticket items, I don't buy it, so far it's worked out ok.

 

[vickster]

Well you benefit in that you would have a new bike from gross rather than net salary. Only you can decide if that's of benefit. The point of the scheme is nominally to enable people to save some tax to buy a bike for commuting. Don't see why you refer to it as a leg up. Your employer buys the bike, you hire it from them and pay every month from gross salary, after the term of the scheme it's yours

 

[Slick]

Okay, thanks for the clarification. I referred to it as a leg up as my employer would be buying something for my specific use and the tax man would give me additional tax relief on its value.

 

[vickster]

Okay, thanks for the clarification. I referred to it as a leg up as my employer would be buying something for my specific use and the tax man would give me additional tax relief on its value.

If you're using it to commute. Can't see the issue. If not, that's where the moral high ground may prevail

 

[dr snuggles]

Hi

Am thinking about getting another bike, but this time getting through Cycleplus. Are they really worth it? After reading some information say for example a £1000 bike, I would pay £56.67 over 12 months total £680. Yes that is a saving but then pay 25% to take ownership of the bike and that's another £250 making a total of £930 is not really a saving.

I phone cycleplus scheme this morning about this final payment, she asked me which company I worked for. I gave her the details and said we don't deal with final payment on behave of this company saying I need to contact my HR department. I phone headoffice spoke to the lady that deals with it. She said after 12 months we can transfer of ownership at 7%. Bit confused I said is that after 4 years? No she said is 12 months. Ok I thought it was 25%. I did say to her I have been reading some information and I read the chart to her (see below)
View attachment 141195
So am bit confused, can some one clarify this for me.

I do apologise as my English is not that good.

Thanks

That's exactly the same scenario at my current employer. My previous employer took no final payment though!
I've just bought one on the scheme but only because it's my second bike this year and it was the only way I could get it passed the wife. I also negotiated a £250 discount prior to purchase so with the extra from the scheme I reckon I've done ok.