# Bike to work scheme.



## paul (11 Nov 2007)

My employer has become part of the 'bike to work scheme'. seems like a good idea to take up and save money. I already cycle to work but could do with upgrading my bike. The offer is only open for a few weeks, local excellent bike shop taking part, stocking bikes that I'm interested in. Any pitfalls in the scheme? Anyone have any comments to make?


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## mickle (11 Nov 2007)

The usual pitfall is that the bikes are only available through Halfrauds. You appear to have neatly circumvented that particular one.


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## doyler78 (11 Nov 2007)

Your pension contributions may be affected as your taxable pay will be lower. You must use the bike for at least 50% of the time for work related business which can include commuting to/from work. If you are public sector employee you will not be able to get the benefits of VAT reclaimation. If you are on a low income and the taxable pay would fall below the minimum wage then you cannot use the scheme (strange one that given that it is precisely this type of person who would benefit most from the scheme). Often you will not be allowed to purchase discounted bikes through the scheme therefore that 20-30% discount in the bike shop for last years model probably will not be available to you. Wiggle I note do allow you to purchase discounted bikes through their scheme so long as your company doesn't pay by cheque.

So really not much worth worrying about in my opinion and would definitely use it if only my organisation would introduce it. Here's hoping.


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## ajc (12 Nov 2007)

I got one through my company "bike to work" scheme, I went through my LBS and they were great. I ended up telling them how much I wanted to spend and we got together to sort out the components/frame/wheels etc.

Most people at work were put off by the vagueness of the contract you have to sign. It basically says at the end of the scheme you don't have the right to own the bike and it doesn't say how much you should pay as a nominal fee to buy the bike off your company. 
However, I can't imagine my company saying to me after a year "Right, we want your bike to sell to someone else", I'm expecting a 5 -10% fee to buy the bike.
And up to now, nobody has checked to see if I use the bike to commute, I think they have bigger things to worry about


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## CarnageAX (12 Nov 2007)

ajc said:


> However, I can't imagine my company saying to me after a year "Right, we want your bike to sell to someone else", I'm expecting a 5 -10% fee to buy the bike.



My company runs this scheme and they have told us they will be charging £10 for each bike whatever the value. 5 - 10% could be as much as £100!

Just remember who is making the money from this scheme and don't pay over the odds for your bike at the end. You only have to buy it at the end to keep the paperwork in order and the tax man happy.


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## skinny man0903 (5 Jan 2008)

i work for a county council and I got a bike through bike to work scheme, and yes you have to use it i think it's 50% of the time I certainly use the bike 50% of the time more like 100% as I use the bike for work related errands. I don't pay as much tax whice is also a nice benifit.
I spoke to the lady that deals with the bike to work sceme, to see if they will run the scheme again in the future, and it seems that it is a ongoing scheme.


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## spandex (6 Jan 2008)

How will they check up on you to see if your using your bike 50% of the time?


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## doyler78 (6 Jan 2008)

spandex said:


> How will they check up on you to see if your using your bike 50% of the time?



All it takes is a pissed off colleague who hates cyclists who knows that bike which you have bought through the cycle to work scheme and are boasting to everyone how you got this cheap bike for weekend riding and you never or rarely take to work to call HMRC and report it.

If they decide to investigate then the onus of proof lies with accused and not the accusor ie you must prove your innocence when it comes to dealing with HMRC. The onus proof does not lie with them. Perverse as that may seem that is the reality.

How likely all is really is subjective however I always think everyone should know what they are walking into before the sign agreements.

As for me I will happily use the scheme when (hopefully) it is introduced.


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## rob_mcp (17 Jan 2008)

Got a brompton on the bike to work scheme. Strangely it is a better benefit for a 40% tax payer - plus my company sell it to me for £10. I do use it for work mainly but as far as I can see there are no checks. Not sure where this figure of 50% use came from. 
If you company uses halfords you still end up buying a brompton from your LBS - Halfords just send the voucher to brompton!


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## CopperBrompton (31 Mar 2008)

CarnageAX said:


> My company runs this scheme and they have told us they will be charging £10 for each bike whatever the value.


Make sure they haven't put that in writing. If they have, it becomes a hire-purchase scheme, and not eligible for the tax-break.

Ben


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