Cyclescheme's new end of rental policy

[mcshroom]

I got an email at work today about the new process Cyclescheme have come up with for the end of the hire term on their own schemes.

What they are offering is a 36 month extended loan period for the bike, where the payment is a one off 7% (3% if the bike is less than £500). Then at the end of the scheme you own the bike.

This sounds like a good compromise, especially as the new extended loan period is not part of the C2W scheme so you aren't excluded from buying another bike

link

 

[dand_uk]

My question about this would be do you still have to keep to the original terms and conditions of the cycle to work scheme - i.e. use the bike for journeys to work at least 50% of the time, not take the bike out of the country.

Anyone know?

Also I am not allowed to claim cycle mileage when using the bike for work purposes as the company effectively owned the bike until 31 Dec 2010 - Can I claim cycle mileage now?

 

[subaqua]

My question about this would be do you still have to keep to the original terms and conditions of the cycle to work scheme - i.e. use the bike for journeys to work at least 50% of the time, not take the bike out of the country.

Anyone know?

Also I am not allowed to claim cycle mileage when using the bike for work purposes as the company effectively owned the bike until 31 Dec 2010 - Can I claim cycle mileage now?

yes if you are not using it to cycle to/from your permanent place of work.

eg my head office is in Woking , but i work on a site in London . I can claim from home to site , site to head office and vice versa but cannot claim for home to head office. If i am at site for more than 2 years that , in the eyes of HMRC ,becomes my permanent place of work.

25p per mile off my tax bill so a 20 mile cycle per day would be £25 a week off you tax bill thats approx £1200 ( take off 28 days holiday (5 weeks 3 days) ) per annum. which can then be spent on shiny stuff for your bike

 

[Bromptonaut]

I don't think my employer has a policy on taking C2W bikes out of the country. Must be the only risk they didn't think of but then again how would they know?

As regards mileage I suspect you shouldn't be claiming as, until the end of the extended lease the bike still belongs to the employer. You'd need a very clued up finance and authorisation process to get caught out though........

 

[bad boy]

I don't think my employer has a policy on taking C2W bikes out of the country. Must be the only risk they didn't think of but then again how would they know?

As regards mileage I suspect you shouldn't be claiming as, until the end of the extended lease the bike still belongs to the employer. You'd need a very clued up finance and
authorisation process to get caught out though.......

That's wrong the extended lease after the 12 months is with the scheme provider nothing to do with the employer that's why your free to do it again after twelve months. All your doing at that point is transferring ownshership to cyclescheme Leaving you free to apply once more of you wish for another voucher

 

[redjedi]

It's good they've finally clarified the final payment like that.

I worked it out for my flatmate by reading through all the fine print a couple of months ago, but it wasn't the easiest information to find.

 

[phaedrus]

You'd need a very clued up finance and authorisation process to get caught out though........

Some politicians made this mistake recently...

 

[Downward]

I'm confused on this final payment - They say 14% of the value of the bikes cost (Shouldn't it be 14% of what the bike is worth now 1 year on ?!).
So when the sums are done on 14% of Bike cost the savings are 15% from the 32% indicated on the website.

 

[lejogger]

I'm confused on this final payment - They say 14% of the value of the bikes cost (Shouldn't it be 14% of what the bike is worth now 1 year on ?!).
So when the sums are done on 14% of Bike cost the savings are 15% from the 32% indicated on the website.

They use a percentage of the original purchase price assuming a standard level of wear and tear over the hire period. e.g a 12 month old bike that originally cost £1k should have a resale value of £250 or 25% if used regularly for commuting over that period. I think this probably works the fairest, especially if you like to look after the equipment. If paying tax on the benefit in kind received, (if your scheme works like this) it is possible to appeal to HMRC to state why you think the fair market value doesn't apply to your bike, but you would need to submit evidence of its condition etc.

- if however you're buying the bike of Cyclescheme (or equivilent) then you have to pay what they say it's worth, as it belongs to them!

 

[boydj]

I got an email at work today about the new process Cyclescheme have come up with for the end of the hire term on their own schemes.

What they are offering is a 36 month extended loan period for the bike, where the payment is a one off 7% (3% if the bike is less than £500). Then at the end of the scheme you own the bike.

This sounds like a good compromise, especially as the new extended loan period is not part of the C2W scheme so you aren't excluded from buying another bike

link

That's still more than you would pay if the company simply handed the bike over to you and taxed you on the value of the bike at that point. The problem is that the company's contract with Cyclescheme means that they hand over ownership of the bike to Cyclescheme - which gives them money for nothing.