Both at the same time? Wow. That is good going. The second argument on the extras is the same argument everyone uses about paying tax. I already pay plenty, why should I pay this other bit?
End of My First Cycle2Work Scheme
- Thread starter BSRU
- Start date
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Both at the same time? Wow. That is good going. The second argument on the extras is the same argument everyone uses about paying tax. I already pay plenty, why should I pay this other bit?
That is not what I wrote, I wrote I have spent lots on extras that I would not have bought if I did not have them plus I will be spending a considerable amount in the future to maintain or upgrade them, all with 20% tax payable.
I disagree with people using C2W to buy bikes not used for commuting as the purpose of the scheme is to encourage commuting by bicycle.
You still avoided paying tax on a luxury item, i.e. a second bicycle.
Yes. The purpose of the scheme is to encourage commuting by bicycle. Not to encourage the purchase of multiple bikes.
I'm going to stop arguing now, and enjoy the weather.
Hawk
Veteran
- Location
- Glasgow Southside
Because everything about cycling is ludicrously overpriced but cycling brings many benefits to society.
cloggsy
Boardmanist
- Location
- North Yorkshire
Last years Cycle2Work scheme has ended and they have given me three options.
1) 7% of original value, £70 to hire it for three more years then take ownership of it.
2) 25% of original value, £250 to take ownership now
3) Return it at my expense.
For me it is a no brainer, option 1.
Or Option 4, have the outstanding value taken off your Tax Code, where you will pay 40% of the £250 owed
You need HM Revenue and Customs form P11D
Was not offered that option, will have to look into it.Or Option 4, have the outstanding value taken off your Tax Code, where you will pay 40% of the £250 owed
You need HM Revenue and Customs form P11D
Only 40% if you're a higher rate tax payer. It could be 20%. This can only be used if your employer owns the bike though (and give it to you as a benefit in kind), not a 3rd party provider.Or Option 4, have the outstanding value taken off your Tax Code, where you will pay 40% of the £250 owed
You need HM Revenue and Customs form P11D
You won't be offered it either. It's the cheapest way around the change of ownership problem but only viable for companies who have bought the bikes outright and aren't using a 3rd party C2W scheme operator.
I assume you're with CycleScheme or similar? Yes they may have made a bit of profit from the bike sale or from the repayments but their main source is from asking for a change of ownership fee. Some people get round this if their employers own the bike and are only interested in breaking even on the scheme, but these 3rd party companies have to make their profit from somewhere, and they do it by taking away a chunk of the savings that you're entitled to. Unfortunately though, using these providers is the least hassle for employers so they don't look into other options that pass on more savings to the employee.
Yes, it is CycleScheme and they own the bike not the company I work for.
It's still a good deal. You are making savings, just not as much as if CycleScheme weren't taking their cut. Some companies don't have the time or resources to dedicate to running such a scheme themselves (although there's not a lot involved) so at least CycleScheme et al are providing a service which gets more people on bikes... I just have a minor gripe that they're profiting by taking legitimate tax savings out of our pockets.
Cannot complain about CycleScheme, they enabled me to buy bikes I would not otherwise have bought, so I'm happy
.Not really, They have to have primary use for commuting whilst they're within C2W?
Most of my cycling is commuting
I could have one road bike kitted out for summer and one for winter. Primary use is still commuting. There's also a couple of off road/ trail routes... MTB and a cyclocross?
Each enables me a different option of commute
smokeysmoo
Legendary Member
- Location
- Bolton, not very far from Nob End
I only wish my employer did C2W, but they won't entertain it 
My employers weren't quite this negative. They had discussed it and our HR department were supposed to be looking at options, but it just never materialised because it meant someone getting off their backsides and making a bit of effort... and if you're an averagely paid clerk in HR with enough other work to do and no interested in cycling then it's not going to happen.I only wish my employer did C2W, but they won't entertain it
It was only because I pushed, and pushed, and then offered to do all the leg work that it ever got anywhere.
Sometimes you just need to take the initiative and if you're getting something out of it (like access to the scheme) then it might be worth investing a little time and effort. Once your employer realises that for them breaking even is a minimum (most even make savings on employers NI contributions), and there's not a great deal of additional work then I doubt they'd be as closed to the possibility.
smokeysmoo
Legendary Member
- Location
- Bolton, not very far from Nob End
I did a fair bit of legwork TBH, we got a list of all interested parties to try and illustrate it would be worthwhile, but as soon as it was realised that the company had to pay out for the bikes it hit a brick wall.
It's a shame as we've got a few cyclists who'd be interested, and as the company we represent even sell their own range of bikes it seems even odder not to get behind it!
It's a shame as we've got a few cyclists who'd be interested, and as the company we represent even sell their own range of bikes it seems even odder not to get behind it!
These companies did a horrendous job at a sales pitch then! There are many companies who run the scheme using a finance option... obviously the interest costs are reflected in the employees hire payments but the whole point is that it ensures that your company wouldn't have to put any cash up front at all!
Even if they did, you're not talking a great deal of money to pay out... our company set a £30,000 cap for the first window... once that was reached on a first come first serve basis then if anyone missed out, they had to wait until the next window. With a 12 month repayment period, that all gets recovered within the same financial year so nothing gets reported in the accounts. If employees leave, the remainder gets taken out of their final pay packet so there's very little risk.
