Foiled by employer on Cycle to Work

[Custom24]

My employer said that they would support the cycle to work scheme.
Then they changed their minds. It boils down to cash. They don't want to spend it.
Can anyone think of a way, legal hopefully, where I basically pay back my employer for the bike outright, but still get the tax benefit of the scheme?

 

[AndyRM]

Not sure about the scheme, but many bike shops will do you a 12 month interest free loan which I reckon is a similar, if not better deal for some people. Could be worth exploring as an option?

 

[EltonFrog]

http://www.cyclescheme.co.uk/employers

I thought the scheme was free to run for employers. It's sounds like your boss is being lazy.

 

[sazzaa]

Can you not see if they'll buy you a bike and charge you the vat-free price? I'm sure my old boss offered to do that for large purchases before.

 

[Profpointy]

I'd not be too put out to be honest. The current incarnation must be a big marginal even at 40% tax once you've paid a "realistic" final payment (old rules was token payment), and factored in any "corkage" / lack of discount, and perhaps not having exactly what you would have liked etc.

 

[vickster]

I'd look into 0% finance on a reduced model rather than C2W on full MRRP

 

[Custom24]

http://www.cyclescheme.co.uk/employers

I thought the scheme was free to run for employers. It's sounds like your boss is being lazy.

Free to run, yes, but they still have to stump up the cash for the bike.

 

[Custom24]

I'd not be too put out to be honest. The current incarnation must be a big marginal even at 40% tax once you've paid a "realistic" final payment (old rules was token payment), and factored in any "corkage" / lack of discount, and perhaps not having exactly what you would have liked etc.

It has changed again (or at least the 3rd party implementations of it have worked around the Fair Market Value kicker), and is now favourable again.

 

[Custom24]

I'd look into 0% finance on a reduced model rather than C2W on full MRRP

Problem is, I already have the bike. I got the green light from our accountant, and foolishly found a shop which sold me the bike and said we could sort out C2W retrospectively. Many, though not all, will do this. So I paid top whack for it. When I came in on Monday, the green light had turned to a red one. I would have bought a bike anyway, but maybe like you say not a 2014 model at top whack. At the very least, I shouldn't have mentioned C2W to the shop until the deal was done. They could still have said "if you do it retrospectively through C2W, we will need to adjust the price". Many shops do this too. But I was too excited to remember this.

So I'm a bit peeved, but hopefully this will be a lesson to someone else.

Actually, why doesn't the government just do something simpler and fairer, like abolish VAT on bikes? The current scheme is convoluted and socially unjust anyway...

 

[vickster]

Oh dear...I would just get out and enjoy the bike ... think of the savings on transport and the health and well being benefits

(and threaten to resign and screw your employer for a pay rise to compensate )

 

[MontyVeda]

One of my former employers signed up for C2W... and when he realised he had to put up the £900 for the bike i was after, it came to a sudden dead end too.

 

[Custom24]

Oh dear...I would just get out and enjoy the bike ... think of the savings on transport and the health and well being benefits

(and threaten to resign and screw your employer for a pay rise to compensate )

I certainly am enjoying the bike. I get the nod from roadies now and everything

 

[EltonFrog]

Free to run, yes, but they still have to stump up the cash for the bike.

Do'h! Of course, I didn't think of that, what a dope!

 

[EltonFrog]

One of my former employers signed up for C2W... and when he realised he had to put up the £900 for the bike i was after, it came to a sudden dead end too.

It's probably ony the large firms that can afford to do it, my wife has bought two bikes on the CTW scheme, but they are a multi million pound company.

 

[MontyVeda]

It's probably ony the large firms that can afford to do it, my wife has bought to bikes on the CTW scheme, but they are a multi million pound company.

that's it... 'family' run businesses can't really justify it.

on the upside... the fact i couldn't get a Brompton did give me leverage to be able keep my bike inside the building instead of chained up to a weak wooden fence.