What a total waste of time and money

[Red Light]

A scheme that has sadly lost its way. Do I feel sorry? Not really, it was abused to the hilt. People at work were buying new bikes every year, never using them for commuting and also buying bikes for their children and girlfriends etc.

I wouldn"t have a problem with that as presumably their children and girlfriends are now riding bikes they wouldn't have otherwise. Anything that gets more people riding or riders more committed to riding is fine by me.

 

[wiggydiggy]

Not the HMRC but your employers. There are plenty of ways that the savings can be just as good they were but many employers are too lazy or don't give a stuff or didn't want to do the scheme anyway and they are using the opportunity to blame HMRC when they pull out.

Hehe see I wanted to say this, but didn't want an argument with anyone!

I read up on the cyclescheme website and it doesn't seem that hard to implement? I'd agree with you though and despite the changes HMRC have made it is more down to lazy employers.

 

[Red Light]

Hehe see I wanted to say this, but didn't want an argument with anyone!

I read up on the cyclescheme website and it doesn't seem that hard to implement? I'd agree with you though and despite the changes HMRC have made it is more down to lazy employers.

Doesn't seem to be a lazy employer problem to me. HMRC put effort into making the changes but the net result is zero. You still pay the same amount monthly, you still pay the same end of 12 months payment. But they just caused a lot of work for themselves designing and implementing the changes and for employers to end up where they started.

 

[wiggydiggy]

Doesn't seem to be a lazy employer problem to me. HMRC put effort into making the changes but the net result is zero. You still pay the same amount monthly, you still pay the same end of 12 months payment. But they just caused a lot of work for themselves designing and implementing the changes and for employers to end up where they started.

I agree with you on HMRC overcompicating things and already said so

Its just annoying that employers (Jezston's and Dan_H's for example) have already backed away from the scheme because of a perceived overcomplicatedeness and or lazyness.

I suppose I have been lucky in my scheme is run by a 3rd party for us as part of a wider 'benefits' package, and we have Halfords as the supplier who despite their own shonky reputation for bikes are willing and able to source I'd say most of the other brands out there in the UK stores.

 

[dellzeqq]

Its good and bad think of oit as an interest free way to buy a bike and you will always pay below the retail value simply because of the tax savings. However its getting more tight and this year it will not be as lucrative company's must pass on the VAT to their employees which reduces the overall discount.

There are arguments for and against for example a participating bike store might have discounted a bike and you go along and try to buy the bike they may not offer the bike on cyclesheme so you can be restricted.

Lets look at it another way at the moment bike stores are begging for our money we are seeing heavily discounted £750 105 componetry carbon road bikes some complete bargains if you shop around. On the other hand a cyclscheme buyer would get a £1000.00 bike for roughly the same money and be tied into the extended hire period so really who is better offf? The guy with hard cash who shops aqround or the cyclesheme employee thinking he's getting a bargain?

Losing the VAT element has certainly taken the shine off the discount and one other minor point to take into consideration is that helmets do not have a VAT element yet they apparently do through cyclescheme but you would get the employee tax free element making it roughly the same'ish price

that's about it. And no 10% to middlemen. And the bike is yours, not your employers.

 

[wiggydiggy]

that's about it. And no 10% to middlemen. And the bike is yours, not your employers.

Of course this works if you have the £450 (current sale price of my bike) upfront, but I dont and I cant have/dont want credit from the sellers themselves. As an easy way to spread the cost of the bike it can't be beat.

Yes I could have put £40 a month away for a year, but I'd have been taxed/NI on that upfront, which brings us back to using C2W as a way to avoid that.

To be honest its always going to be 6 to one half dozen to the other on this, for some with employers that are willing this scheme is a godsend. For others its easier just to save and buy upfront.

Each to their own I guess?

 

[Norm]

Doesn't seem to be a lazy employer problem to me. HMRC put effort into making the changes but the net result is zero. You still pay the same amount monthly, you still pay the same end of 12 months payment. But they just caused a lot of work for themselves designing and implementing the changes and for employers to end up where they started.

Who do you think sets the amount you pay per month, the amount you pay over the rental period and the amount that you pay to transfer ownership at the end of the rental period?

 

[oldfatfool]

My biggest gripe is my employee set a £500 limit and stipulate the bike must be bought from Halfords

 

[BlackPanther]

So what has happened now? Well it seems you still hire the bike for 12 months as before out of pre-tax salary. But now because the final payment is so high, instead you now pay a one off "Continuation Deposit" and sign a "Modifying Agreement" to continue to hire the bike for a further 31 months. At the end of the 31 months you will have now hired the bike for 3yrs 7months which can be rounded up for tax purposed to four years. You then pay a final payment to own the bike at the four year hire rate of 3% or 7% (depending on the initial bike price) - instead of the one year rate of 18% or 25% - which is deducted from the Continuation Deposit (which I assume neatly matches). You don't even need to work for the same employer for the extra 31 months.

如此什麼現在發生了？ 很好它似乎您仍然聘用自行車12個月作為以前在付稅之前薪金外面。 但現在，因為最後支付很高，反而您現在支付那個「繼續儲蓄」并且簽署「修改協議」繼續聘用自行車另外31個月。 在31個月的結尾您現在聘用了自行車為可以為稅被環繞打算到四年的3yrs 7months。 您然後支付最後支付對自己自行車以4年的聘用率的3%或7% (根據最初的自行車價格) -而不是從繼續儲蓄(被扣除我整潔地假設比賽)的一年率的18%或25% -。 您甚而不需要為同一位雇主工作為額外31個月。

As you can see, it makes about as much sense in Chinese....if you don't speak Chinese.

 

[wiggydiggy]

My biggest gripe is my employee set a £500 limit and stipulate the bike must be bought from Halfords

I dont know why your employer has set that limit, but Halfords will source other bikes for you. I have selected a non Halfords brand from a LBS in my area, all I do is when my Letter of Collection arrives I call the Halfords helpline and they transfer the funds to the LBS I have chosen then I go in to that store (not Halfords) and get my bike.

Call their helpline tomorrow and ask them for a list of suppliers in your area they deal with, then pick a bike:

08450 77 88 50​

http://www.cycle2work.info/siteadvicecentrebrand#Store