Cyclescheme still worth doing?

[Monsieur]

Like a new Dawes touring bike for circa £800 - is the cycle to work scheme still worth doing?

 

[Soltydog]

It probably depends on who's running your scheme & maybe on your earnings? If you are a higher tax rate payer then you'll save more on your monthly payments. The final value figure seems to be nearer to a true value of the bike, rather than another months payment, so the scheme isnt as attractive as it used to be. If you look at it like an interest free loan, its not too bad.
my employer is running a new scheme in the new year & i'm considering it n+1 & all that

 

[Monsieur]

Not in higher tax bracket (though scaringly close to it).
My employers scheme is called cyclescheme rather than bike2work.
Employer-wise, I work for a local authority (school)

 

[Herr-B]

May total payout including the cheapest buy-off (pay a one-time fee and keep for a year) is £750 for my £900 bike. It's not the feted reduction that caught my eye but perfect for me as I have bad credit (bankrupt 2008 ) and would've been written off using any other method other than cash up front.

 

[Norm]

I would never use a scheme which was contracted out to Cyclescheme.

 

[boydj]

I would never use a scheme which was contracted out to Cyclescheme.

Agreed. Unless you are a high rate taxpayer or your work can reclaim the vat.

This time of year you're likely to get a really good deal on 2012 models which will give you savings just about as good as you can make with Cyclescheme, and the bike is yours from day one. If your work uses another scheme, then you'll have to work out the benefits for yourself. While the basics of the scheme are set, the way it is implemented can make significant differences in the overall cost.

 

[MrsDangermouse]

Cyclescheme doesn't appear to have a great reputation but certainly for me it makes sense - probably because I just nudge the higher tax rate. According to my calculations if I take the extended use option I'm going save about 40% off the £650 price of my 2013 Sirrus Elite (unfortunately nowhere seems to have any 2012s left in XL size) so I think that's a pretty good deal overall. It doesn't bother me the company technically owns the bike - I'm prepared to put up with that in return for the £260 saving. I think the only way to tell if its actually worth it is to do the sums and see how much you'll save and then decide.

 

[boydj]

It's more than the 40% because you might also be saving on NI payments as well if your repayments pull your salary below the NI threshold. Have you factored in the further 7% of the value that you'll pay to Cyclescheme at the end of the first year to rent the bike from them for a further 3 years?

 

[MrsDangermouse]

Its actually just over 40% saving including NI and the extended hire payment. I'm happy enough with it and have a much better bike than I could have afforded without the scheme.

 

[Monsieur]

Still slightly unsure - I missed the 25% off bikes offer with evans last week
The scheme reckons I'd make a saving of 42% on my possible purchase of a Dawes Kakoram (sic).
Still pondering...

 

[Lee_M]

I keep having second thoughts too

A £1000 bike will save me about £200 tops and I'll have to keep it for 3 years and if I leave my employer earlier I'll save less

It is a saving but if I then decide to add say £100 to the purchase myself that makes it even worse