# Cyclescheme - can I spend more than the voucher



## danrees (31 Jan 2010)

First time post although have been lurking for some time.

I have just received a £1,000 voucher from Cyclescheme which is burning a whole in my pocket.

I was looking at getting the Ridgeback Panorama or a Dawes Galaxy to replace my 2 year old knackered Ridgeback hybrid, with a view to doing some touring in the summer as well as day to day commute (5 miles each way in London).

However two LBS I have contacted have both said I cannot spend more than the amount of the voucher. Is this true?

All of the info I have received from my employer says I can top up as much as I like.

Does anybody know of any Ridgeback or Dawes stockists in central/SE london who will allow you to spend more than the voucher?


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## Tollers (31 Jan 2010)

Technically no you're not allowed to, but some bike shops look the other way.


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## ttcycle (31 Jan 2010)

Yes it's possible, I got my original bike on C2W - Paid the rest from my own pocket. Though where I got my bike doesn't stock what you want and they have this overly complex ordering system which takes forever so not sure where to suggest.


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## danrees (31 Jan 2010)

Thanks Tollers - seems like a better option may be to order online to get under £1,000 threshold) e.g. have seen a 2009 Galaxy Plus for £930) even if I then need to pay a LBS to help me set-up/tune...


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## Tollers (31 Jan 2010)

danrees said:


> Thanks Tollers - seems like a better option may be to order online to get under £1,000 threshold) e.g. have seen a 2009 Galaxy Plus for £930) even if I then need to pay a LBS to help me set-up/tune...



Not neccesarily. As TT said, I also ordered online and went over the £1000 threshold. Best to get the bike you love, but got to LBS and ride as many as you can to make sure that anything you might order online has geometry that you'll like.

A good bike bought online at that price shouldn't need a tune and only need the seatpost put in and handlebar, stem adjusted which can all be done easily with a 4/5mm allen key.


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## hackbike 666 (31 Jan 2010)

*I was looking at getting the Ridgeback Panorama or a Dawes Galaxy to replace my 2 year old knackered Ridgeback hybrid, with a view to doing some touring in the summer as well as day to day commute (5 miles each way in London)*

This made me laugh...two years old.


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## Flying Dodo (31 Jan 2010)

HMRC guidelines on the Cycle to Work scheme confirm there's nothing stopping you topping up the amount if you want to.


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## GrumpyGregry (31 Jan 2010)

most employers don't seem to like you doing so; i guess if you leave it could get complicated....


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## addictfreak (31 Jan 2010)

My MTB was a CTW buy which cost me £1500. Just paid the £500 up front to the LBS, they were perfectly ok with it.


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## TheDoctor (31 Jan 2010)

I did the same when I got my Brommie. Evans just took the difference on a credit card.


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## Norm (31 Jan 2010)

GregCollins said:


> most employers don't seem to like you doing so; i guess if you leave it could get complicated....


That, IMO, is the issue. It's not about the LBS, they are just being soft-in-the-head and turning away business. 

The problem is that the Cycle To Work scheme is set up for you to "hire" the bike from your employers. As Greg says, what if you leave within the 12 month period. What if the employers cancel the hire agreement or you fail to negotiate a price at the end of the hire period. I think that, if you'd spent £1,500, then you'd be down the £500 with no redress.


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## addictfreak (31 Jan 2010)

Norm said:


> That, IMO, is the issue. It's not about the LBS, they are just being soft-in-the-head and turning away business.
> 
> The problem is that the Cycle To Work scheme is set up for you to "hire" the bike from your employers. As Greg says, what if you leave within the 12 month period. What if the employers cancel the hire agreement or you fail to negotiate a price at the end of the hire period. I think that, if you'd spent £1,500, then you'd be down the £500 with no redress.



All I can say to that, is many people have done this with no problems. If you enter into it make sure you know the pitfalls.

The price at the end of the period is usually an admin fee, in my case I was asked to pay £20 to keep the bike or £20 the return it. The fact is employers dont want piles of bikes.


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## Norm (31 Jan 2010)

addictfreak said:


> All I can say to that, is many people have done this with no problems. If you enter into it make sure you know the pitfalls.


Yes, indeed, many of those issues are issues whether you top up or not. If you leave before the end of the scheme, you could lose the bike *and* any payments you have already made anyway.

My post was just to alert Dan (and any other subsequent readers) of the _potential_ issues. Only an individual will know what the chances are of them leaving within the year, so I don't think that anyone can, or should, answer for someone else, just give the info for them to make their own choices.


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## addictfreak (31 Jan 2010)

Some FAQs for info:

http://www.cyclescheme.co.uk/employee,faqs.htm


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## bad boy (31 Jan 2010)

Norm said:


> That, IMO, is the issue. It's not about the LBS, they are just being soft-in-the-head and turning away business.
> 
> The problem is that the Cycle To Work scheme is set up for you to "hire" the bike from your employers. As Greg says, what if you leave within the 12 month period. What if the employers cancel the hire agreement or you fail to negotiate a price at the end of the hire period. I think that, if you'd spent £1,500, then you'd be down the £500 with no redress.



+1 spot on there Norm.

I think people forget that in essence its a hire agreement not just a tax break amounting to roughly a 40% discount entertained through a salary sacrifice scheme.

I see no problem with toping it up but don't see how the paper work could reflect the actual amount paid otherwise your employer may have reason for concern as this is clearly not permitted mainly due to the fact that most employers do not have a credit license if yours does then my understanding is its not a problem. I have used a CS voucher and the shop just filled in the paper work to amount to 1000 for the purposes of the voucher and I paid the rest and no one was none the wiser.


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## Tollers (31 Jan 2010)

This is a good point actually. I bought my bike for £1250 (£1000 cyclescheme and £250 cash) back in september. In a few months im transferring to our US office so no longer under the UK control at all. What will this mean for my finances?


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## fossyant (31 Jan 2010)

Tollers...you may have to pay for the remainder of the bike without the tax break.


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## ttcycle (1 Feb 2010)

Yep, If you leave the company or technically move abroad within the company - you have to pay the outstanding balance without the tax break benefit plus whatever fee they charge for you to have ownership of the bike.

Tollers - there may be room for negotiation around this but highly unlikely as the PAYE scheme and tax rates out in the US will be different.

Really give it some thought as to whether you will be in the organisation for the full term of the 'loan/hire' period as some are 18months as paying it off when you leave means the tax savings do not apply


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