# Cyclescheme - Final payment



## Downward (6 Aug 2009)

So when I 1st joined I was told by cyclescheme that they charged the 5% est + Vat fee to "purchase or scrap" the bike
I am not sure though this is the case. What happens is you apply for voucher for say £500. Cyclescheme invoice your company for £500 which your company pay.
When the voucher is redeemed at the LBS the LBS pay Cyclescheme 10% or in this case £50.

So Cyclesheme have their money so I assume your company will invoice you for the 5% est buy/scrap fee ?


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## lazyfatgit (6 Aug 2009)

I had a bike through cyclescheme, but left employment before scheme term was up. monies due for the remainder of the cost were paid out of final salary (lose out on tax benefits here unfortunately) and then cyclescheme invoiced me for the transfer of ownership (or arrange to have bike collected/sent back).


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## Downward (6 Aug 2009)

lazyfatgit said:


> I had a bike through cyclescheme, but left employment before scheme term was up. monies due for the remainder of the cost were paid out of final salary (lose out on tax benefits here unfortunately) and then cyclescheme invoiced me for the transfer of ownership (or arrange to have bike collected/sent back).



Ooo that's interesting.

I will have to keep an eye out on that. If thats the case Cyclescheme are charging 15% Total + Vat for using their scheme.

If it's your company charging fair enough as they "own" the bike.
I shall have to query if cyclescheme come a knocking.


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## I am Spartacus (6 Aug 2009)

Which Labour MP owns Cyclescheme then?


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## Downward (6 Aug 2009)

I am Spartacus said:


> Which Labour MP owns Cyclescheme then?




Hehe yeah I am not sure how they have "won" all this business.

I may have to have a nosy around and ask them how the the Tendering process was carried out. Bearing in mind the spend with them per annum is above the OJEU limit just for our company alone.

http://en.wikipedia.org/wiki/Official_Journal_of_the_European_Union


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## Downward (6 Aug 2009)

By jove excuse my cynicism it seems a competitive exercise was done.

http://www.cyclescheme.co.uk/pdf/opentender.pdf

Still it only went from April 09 so not sure how it sneaked through before.

http://www.nhstenders.net/modules.php?op=modload&name=News&file=article&sid=41656

Now thats interesting.

That will cover a fair few hospitals in Birmingham
Salary Sacrifice

Childcare Vouchers,
— Workplace Nursery,
— Staff Restaurant,
— Mobile Phones,
— Vehicle Leasing,
— Bus to Work,
— Cycle to Work,
— Park or Ride,
— Workplace Car Parking,
— Other.


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## Downward (20 Aug 2009)

Has anyone gone via cyclesheme and actually paid to transfer ownership ?
I don't know if I own the bike or not - My 12 months were up at the start of July


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## addictfreak (20 Aug 2009)

Downward said:


> Has anyone gone via cyclesheme and actually paid to transfer ownership ?
> I don't know if I own the bike or not - My 12 months were up at the start of July



My last monthly payment is due 1st Oct. Then there is one additional payment of £20 to tranfer owner ship of the bike to me. Should I not wish to keep the bike I can return it also for a charge of £20.

My employer sent me a letter detailing the above about 2 weeks ago. The value of my original voucher was £1000.

Hope that helps.


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## Downward (20 Aug 2009)

addictfreak said:


> My last monthly payment is due 1st Oct. Then there is one additional payment of £20 to tranfer owner ship of the bike to me. Should I not wish to keep the bike I can return it also for a charge of £20.
> 
> My employer sent me a letter detailing the above about 2 weeks ago. The value of my original voucher was £1000.
> 
> Hope that helps.




Knowing our employer and how they cocked up the childcare vouchers they will take X amount for the old bike and the payment for the new scheme without notice


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## iendicott (20 Aug 2009)

I'd be interested to see how this pans out as I am pushing for this scheme at the NHS trust I work for. Another trust I have spoken to does this already and at the end of the year the trust gives you the option to purchase the bike for £1 to cover paper work.


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## minemapper (21 Aug 2009)

Last payment came out of my June paycheck. Haven't heard a peep from HR yet about transferring ownership. Suspect I won't. Getting ready to do another one for the missus soon.


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## Maizie (21 Aug 2009)

Anyone here have cyclescheme but it runs for longer than a year?

Our company, we pay 12 monthly payments, but the hire period is THREE years, and it's only after the three years (i.e. 2 years after the last monthly payment) that you (a) make your final transfer of ownership payment and ( can buy another bike through the scheme.

Any idea why they'd do three years? We are allowed to go for up to £3000 if we want, does that affect it?

Don't know if I can be bothered, chance of me having a job here in 12 months - nevermind 36 months - seem pretty darn slim...


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## g00se (21 Aug 2009)

Just a guess - but maybe the 3 year hire agreement is to stop you buying a new bike annually - that is, you can only apply for a new cyclescheme bike every three years?


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## Maizie (21 Aug 2009)

I was thinking it couldn't be as simple as that, but then when I think of the size of the company and the potential uptake, yeah, they probably don't want to run the risk of us all wanting a new bike every year! (Besides, they let you spend up to £3000, and they probably expect a bike that cost that much has a chance of lasting three years...)


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## Theseus (21 Aug 2009)

These sorts of things are generally controlled by accountants. My guess would be that they have to depreciate it off the books before you can take it over. This may not be possible to do over 12 months, but quite acceptable over 36.


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## 2Loose (21 Aug 2009)

Maizie said:


> Any idea why they'd do three years? We are allowed to go for up to £3000 if we want, does that affect it?



I know that there are some financial regs which mean that it can normally only be upto £1000 per year...so doing it over 3 years would (I presume) allow them to offer upto 3k instead, without breaking those rules.


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## addictfreak (21 Aug 2009)

2Loose said:


> I know that there are some financial regs which mean that it can normally only be upto £1000 per year...so doing it over 3 years would (I presume) allow them to offer upto 3k instead, without breaking those rules.



I believe that if you want more than £1000, then your employer has to have a credit license, which costs around £750.


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## Downward (21 Aug 2009)

Really your employer could be real nasty about it all and keep the bikes and sell them theirselves for way more than the 5% they charge us. This is my worry.


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## addictfreak (21 Aug 2009)

Downward said:


> Really your employer could be real nasty about it all and keep the bikes and sell them theirselves for way more than the 5% they charge us. This is my worry.



Clearly I cant speak for all employers, and as you have seen there are quite a few variations between schemes/employers.
But I think on the whole its a good way to buy a bike and personally I have not hard of any problems.
If its available to you, go for it.


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## BilboSmeggins (21 Aug 2009)

I'm waiting my Cycle2Work to be finalised. Problem is - I work for Royal Mail who have set a ceiling of £500, and hamstrung us with having to go through Halfords!! There is one other outlet (LeisureLakes), who supply Halford's who we can apparently use. But they are absolutely adamant that I cannot go above £500, which is a little miffing as all the bikes I'm interested in start at the £550 mark.

Really peeved. The way it's going I can see myself coming away with a Raleigh Chipper!!


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## addictfreak (21 Aug 2009)

BilboSmeggins said:


> I'm waiting my Cycle2Work to be finalised. Problem is - *I work for Royal Mail* who have set a ceiling of £500, and hamstrung us with having to go through Halfords!! There is one other outlet (LeisureLakes), who supply Halford's who we can apparently use. But they are absolutely adamant that I cannot go above £500, which is a little miffing as all the bikes I'm interested in start at the £550 mark.
> 
> Really peeved. The way it's going I can see myself coming away with a Raleigh Chipper!!



Lets hope they dont deliver your bike, you might get it in time for christmas


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## BilboSmeggins (21 Aug 2009)

Oooh, below the belt 

But oh so true.............


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## Downward (21 Aug 2009)

Pay the extra £ It's what most of us do.


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## BilboSmeggins (21 Aug 2009)

Downward said:


> Pay the extra £ It's what most of us do.



They will not allow me to top up. Unless you are implying that I've got in excess of £500 lying around. In which case I refer you to the part where I said "I work for Royal Mail", not for Royal Mint.....


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## addictfreak (21 Aug 2009)

BilboSmeggins said:


> They will not allow me to top up. Unless you are implying that I've got in excess of £500 lying around. In which case I refer you to the part where I said "I work for Royal Mail", not for Royal Mint.....



Although not everyone agrees with topping up, it is possible and totally above board. You need to speak your LBS most (not all) will allow you to pay the extra up front. Not suggesting you throw in £500. But its a good way of getting a slightly better bike.


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## BilboSmeggins (21 Aug 2009)

No, as I said earlier, the only bike shop the scheme will allow me to use (outside of Halford's) have stated quite categorically that they will not allow any sort of "top-up".

It's all the more annoying that they run a "VIP" scheme ( http://www.leisurelakesbikes.com/VIPClub/ ) that would enable me to grab the bike I wanted at a price of less than £500, were I to subscribe to it. However, upon ringing them they said that the Cycle2Work cannot be used in conjunction with any of their offers, VIP scheme included...... Job's worth or what 

So, I've a voucher turning up next week that shall have to sit on the shelf until the january sales................


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## Paul_iow (21 Aug 2009)

When I received my cyclescheme voucher it said it had to be used within 60 days, not sure if it is the same as cycle 2 work, but just making you aware you may need to use it before the sales.


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## BilboSmeggins (22 Aug 2009)

Hi Paul

I did ring the C2W hotline, and they said that they will just re-issue the vouchers until I find a bike, or I die. Whichever comes first. With the current dearth of affordable bikes it shall probably be the later


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## Downward (24 Aug 2009)

Intresting Cyclescheme want the 5% + Vat. So they are making 15% + VAT from the scheme on the whole.
Nice little earner there.


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## abchandler (25 Aug 2009)

I bought a bike through cyclescheme. They don't have anything to do with the end of term payment, they are only involved in providing the voucher and receiving payment from your company for it. Anything that happens during the term or at the end is between you and your employer.


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## Downward (25 Aug 2009)

abchandler said:


> I bought a bike through cyclescheme. They don't have anything to do with the end of term payment, they are only involved in providing the voucher and receiving payment from your company for it. Anything that happens during the term or at the end is between you and your employer.



And my employer have handed over the bike to cyclescheme and now it belongs to them.


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## lazyfatgit (25 Aug 2009)

abchandler said:


> I bought a bike through cyclescheme. They don't have anything to do with the end of term payment, they are only involved in providing the voucher and receiving payment from your company for it. Anything that happens during the term or at the end is between you and your employer.



Don't agree. I got a letter stating I had to pay a fee for transfer of ownership, or arrange for the bike to be collected by them.

Was a bit peeved at this, as my employer had paid in full for the bike, so my understanding was it belongs to them. As I have moved jobs I just paid up for an easy life.


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## lazyfatgit (25 Aug 2009)

Downward said:


> And my employer have handed over the bike to cyclescheme and now it belongs to them.



That 's a bit poor. Is there no way of getting it back? Can you deal with them directly? Can't see a 2nd hand bike being much use to them.


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## abchandler (26 Aug 2009)

lazyfatgit said:


> Don't agree. I got a letter stating I had to pay a fee for transfer of ownership, or arrange for the bike to be collected by them.



The terms I signed up to meant the transfer of ownership was from my employer to me, not cyclescheme to me. The company must have 'given' the bike to cyclescheme??


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## Downward (26 Aug 2009)

Trust me - I have an Invoice from Cyclescheme for payment to buy my bike and I have just sent them a cheque in the post. I can't start claiming expenses for my bike until I own it.



The bike is in my hands always has been. Cyclesheme don't have the manpower or ability to go round collecting bikes so they will either charge you 5% + Vat to buy it or 5% + Vat disposal fee.


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## Typo (26 Aug 2009)

From the cyclescheme employee FAQ page:-



> The bike and goods remain the property of your employer until the hire period finishes, unless your employer uses finance; in this case the finance company will own the bikes during the hire period.



So maybe some employers have got finance from cyclescheme?


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## Downward (26 Aug 2009)

Ours is different. I shall get the exact wording at work where I have the PDF document saved.


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## Downward (27 Aug 2009)

*Ownership
7. Is the bike mine straight away?​*No, the bike and goods remain the property of the Trust until the hire period
finishes but you are responsible for the bike during the hire period.. At this
point you may be given the opportunity to buy the bike at a fair market value.​See Fair Market Value (FAQ no. 9) below for more details.

*9. What happens if I don’t want the bike at the end of the loan period?​*The Trust wii transfer ownership of the bike to Cyclesceme at the end of te
Hire period. It is the Trust’s/Cyclescheme’s choice whether they opt to sell
you the bike at the end of the hire period. If you choose to become the owner
of the goods, you may be offered the opportunity to pay the Fair Market Value
for them from your net salary. If you choose not to buy the bike you will be
charged the equivalent of the Fair Market Value to dispose of the goods,
probably to a charity.
The fair market value cannot be stated before or during the scheme as this
could be considered a benefit in kind as hire-purchase does not warrant any​tax-relief.


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