Foiled by employer on Cycle to Work

[Nortones2]

You could ask for a company car instead....

 

[Brains]

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.

Considering they get back the £900 within a year, companies that are this close to the line on cash flow are about to be in for a very rude shock as the new pension scheme starts today for most of them.

 

[Custom24]

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.

Not sure about that. More employees mean more outlay.

 

[boydj]

You could point out that the company saves money - I believe that it's about 11% of the payments taken from the employee on which employer NI does not have to be paid. So if the employee pays back £1000 on a bike via salary deduction, the employer saves £110 on the NI payments due from the company on the employee's salary. This would more than cover the cost of any borrowing for the upfront payment for the bike.

 

[buggi]

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.

that's not the case anymore. Cyclescheme found a loophole, the final payment is minimal.

 

[gambatte]

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

If I remember correctly, MRRP doesn’t come into it, it’s down to whatever price the bike is. C2W scheme can be applied to one that’s been discounted multiple times.

 

[vickster]

Some shops won't sell a discounted bike for a c2w voucher, on your bike for example. But that's the shops policy not c2w per se if that makes sense

 

[fossyant]

I wouldn't bother with the scheme anymore !

 

[Cookie56]

Some shops won't sell a discounted bike for a c2w voucher, on your bike for example. But that's the shops policy not c2w per se if that makes sense

Most retailers reserve the right to adjust the price to cater for the scheme admin fee. Usually this is around 11% but shouldn't preclude sale bikes.

 

[EltonFrog]

Most retailers reserve the right to adjust the price to cater for the scheme admin fee. Usually this is around 11% but shouldn't preclude sale bikes.

My wife bought a sale bike last week on the CTW scheme. If she paid cash for it she may have got a £100 discount in cash or goods. As she is the highest tax band it makes more sense for her to to get it on the scheme, even taking into consideration the nominal payment at the end of the hire period.

 

[vickster]

But for some it does preclude sale bikes