Cyclescheme bicycle condition assessment

[2Loose]

I popped in to my lbs today and had a chat with them about it and predictably everything is going down as a D and this amounts to 5% (from them anyway). What they did say was the margin they take from the sale has not gone up.

Its a storm in a tea cup, in reality for most this will not affect the final value figure we pay but I do understand why the documentation has been firmed up etc. Cyclescheme.co.uk is not completely stupid they would go bust in a matter of months if the reality is we are paying near enough full market value for these bikes, and they know that.

+1

 

[puglord]

Category 2:
A cycle that has been ridden regularly but infrequently to and from work throughout the hire period. Predominantly used on the road or cycle paths for short distances.

I didn't think C2W scheme would allow this condition? i thought at least half its use had to be to and from work?

 

[summerdays]

[/b]
I didn't think C2W scheme would allow this condition? i thought at least half its use had to be to and from work?

Define half - half the distance, half the number of occasions etc... that part isn't completely clear as far as I remember from the wording.

 

[puglord]

Has anyone clarified whether it is self assessment or has to be done by the shop in which it was bought?

Not sure on self assessment but i do know that you can take it back to any shop thats part of the C2W cyclescheme.

 

[Norm]

[/b]
I didn't think C2W scheme would allow this condition? i thought at least half its use had to be to and from work?

Eh?

If it hasn't been used much, then half of that little-use could be for commuting purposes. It could be that it was never taken out other than once for commuting during the hire period, and that would be just fine.

 

[Downward]

It's all crap anyway , put your bike in catergory D when it's maybe A or B and if they say well it's immaculate then just say well now I am taking Ownership of it I paid the LBS to service it and give it a good clean.

My hybrid looks a mess but an hour or 2 of cleaning it'll be sparkling. The roadie however needs a bit of work to bring it back to pristine as it is used daily.

 

[DrSquirrel]

[/b]
I didn't think C2W scheme would allow this condition? i thought at least half its use had to be to and from work?

Then they should be paying a higher %+TAX

 

[dubman]

Just to let you all know the final outcome , the final price for my cat. D bike is £58.75 , im glad they never marked it A

 

[Jezston]

What was the original full value?

 

[Arfcollins]

I'm almost to the point of getting my voucher - employer hasn't paid the Cyclescheme invoice yet ans I've asked them to hold off for now as I wanted to discuss a possible 2 year lease period. FD has forwarded the e-mail below, and now I am wondering whether to go ahead with my current application or let it expire and do it after September.

Discuss.




From: cyclescheme-employernews-owner@cyclescheme.co.uk [mailto:cyclescheme-employernews-owner@cyclescheme.co.uk] On Behalf Of noreply@cyclescheme.co.uk
Sent: 17 August 2010 17:49
To: noreply@cyclescheme.co.uk
Subject: Cyclescheme Response to HMRC EIM Updates EIM 21667/21667a




Cyclescheme Response to HMRC EIM Updates EIM 21667/21667a

16 August 2010



First and foremost, don’t panic!

Contrary to initial reactions to the publication of the updates, Cyclecheme would like to reassure our clients that we have a process in place that ensures our schemes continue to be compliant, whilst retaining their attractiveness to employees and employers alike. (To view a copy of the updates please visit http://www.hmrc.gov.uk/manuals/eimanual/EIM21667a.htm).

• According to the updates, employers charging ‘disposal values’ lower than those described in the Valuation Table will be required to catalogue evidence of each bike’s condition and value at the time of offer of sale.

• Cyclescheme has developed a simplified 'Condition Assessment' (CA) process in response to the guidance that was published by HMRC in December 2009.

• The process provides the required evidence of the condition and value of the bike at the time of offer of sale.

• It is only in the absence of any evidence, employers need refer to HMRC’s Valuation Table for acceptable ‘disposal values’ as an ‘administrative easement’.

• Cyclescheme performs this free service for the majority of our clients whereby we handle the transfer of ownership of equipment to scheme participants at the end of the hire period.

• This service relieves employers of considerable administrative burden at the end of the hire period.

• As part of our service we contact all scheme participants near the end of their hire period and they report on the condition of the bike using our simple and comprehensive Bicycle Condition Guide.

• Scheme participants can complete this process online via the Cyclescheme Extranet.

• The condition categories have been established using our own extensive industry experience, consultation with our Independent Bicycle Dealer network, and a resultant ‘Store Survey’.

• The condition assessment is based on 4 condition categories, A, B, C & D.

• Once the condition has been ascertained Cyclescheme sends the participant an invoice for the market value.

• In accordance with HMRC guidance contained in EIM 21667a, Cyclescheme’s condition assessment process provides 'contemporaneous evidence of the amount for which that type of cycle in that sort of condition would have realised in a private sale'.

• In short, using our fully automated process negates the need to use HMRC's Valuation Table.

• Appreciating that the market value invoices may exceed current participant expectations and in order to maintain the scheme's economic attractiveness, participants may be given the option to extend the hire period with Cyclescheme.

• If the hire period is extended Cyclescheme will contact the employee and may offer ownership of the bicycle at the market value (MV). The market value cannot be stated prior to the end of this period but should be less than the valuation arrived at for bikes in categories A, B and C in the condition assessment.

• Cyclescheme will be phasing in the Condition Assessment process by applying it to all vouchers ‘requested’ after Thursday 30th September 2010.

• Vouchers ‘requested’ prior to this date will be subject to the existing Cyclescheme market value process.

To request further details of our new Condition Assessment process please email us on info@cyclescheme.co.uk with the subject line ‘HMRC EIM Updates’, and please include the employer name and the following information;




- How many employees does your organisation have?

- Are you currently running a Cycle to Work scheme?




Best regards,

The Cyclescheme Team

 

[smarttim24]

Got my assessment back today £44.59 on a bike and equipment of £760.personally do not think that is to bad and about what I thought I would be paying.After reading all the doom And gloom that has been posted had come to expect to be paying more.

 

[dubman]

What was the original full value?

£1000

 

[Bromptonaut]

@arfcollins,

Very interesting quote from cyclescheme. Will be equally interesting to see what happens if its tested by a 'difficult' inspector. As Chris KH helpfully explained in another thread the employer is at risk from HMRC penalties if employees gain an untaxed benefit in kind. I wonder if cyclescheme are confident enough to indemnify the employer in such circs.

My employer, a large central gov dept, is about to launch a new scheme in October. They had to re-tender after attempts to hang on the coat tails of another departments scheme faltered. The old scheme run through Cycle Solutions had not been all that well patronised, partly because of problems around final values.

As a member of the organisation's Bike User Group I'm invited to meet the new supplier in early September so anything that helps with asking the right questions is gratefully received.

 

[Jezston]

£1000

So the category D payment was about a months payment? That's good to hear - if I get the same categorisation my final payment will be about £20

 

[dubman]

So the category D payment was about a months payment? That's good to hear - if I get the same categorisation my final payment will be about £20

yes about a extra months payment , Just hope you get a understanding shop