Cycle to Work Scheme - number of bikes....

[Andrew_Culture]

I have asked my employer and they said that it is too much work for them to join the scheme.

Ditto sadly


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[TonyEnjoyD]

[QUOTE 1947915, member: 76"]1st was a carbon Ribble
2nd was a Trek mtb
My employer has just reopened the scheme, and I am considering a cyclo-cross bike, but I am also trying to stay strong![/quote]
Don't do it Maggot...staying strong is for the weak.
Assuage your need, your conscience will feel much better on you new steed....go on, you know you want -no-NEED to do

 

[TonyEnjoyD]

Giant SCR 3.0 racer first, the Claude Butler Urban 200 hybrid followed by my Trek 6000 MTB fir a bit of off-road and winter ommute.

Methinks £1000 Cube Peloton is my next goal.
Mmmmmmmmm

 

[The Jogger]

Well, that's lovely.

When do you pay for me to get my bit back, since I can't afford to buy a new bike every year even with a tax break?

I don't really understand the point, I would like certain things and have done but couldn't afford to get them, maybe I can't really afford the bikes but still want to take advantage of the scheme.

 

[marinyork]

I don't really understand the point, I would like certain things and have done but couldn't afford to get them, maybe I can't really afford the bikes but still want to take advantage of the scheme.

The point is people on incredibly high paid and cushy jobs seem to be the ones complaining about c2w . Something I've always found odd.

 

[TheDoctor]

Quite.
Am I the only one who finds the idea of buying a bike on C2W just so as to bring your pay down below the £50k threshold for getting child benefit a bit distasteful?

 

[subaqua]

Well, that's lovely.

When do you pay for me to get my bit back, since I can't afford to buy a new bike every year even with a tax break?

thats socialism Noo Labour in action. do what i say not what i do

 

[Red Light]

Three. Got a Brommie to start with for taking in on the train and cycling round London. Then upgraded after two years to the Titanium Brommie when it came out and the original became a family Brommie. Then recently added to it with a Genesis Day One as a bullet proof commuter for cycling into work. So all three have been used in line with the spirit of the scheme and not as an n+1 abuse of the taxpayer.

 

[rvw]

I was part of the team at my place (big NHS hospital trust) who got the scheme going, initially funded by the charity arm (we've had to hand it over for the trust to do themselves due to changes to VAT treatments - bah). We also got problems from HMRC changing the rules on "fair value" for the final transfer of the bikes. It seems that the politicians set it up to be a real saving, and then the tax bods have done their best to reduce that as much as possible.

It's always seemed a bit of a shame to me that higher rate taxpayers save more on the scheme than those on basic rate - so the saving is bigger for those who need it less.

 

[Jimbo Xiii]

Hi Guys,

I'm looking at getting a Boardman Road Race via Cycle2Work but I'm a little confused. I work for Birmingham City Council and the scheme is run by Halfords. I've just got all the forms printed and the amount I'm getting deducted out of my wages is £54.17 x 12 months, coming to £650 (the total cost I applied for). I assume the savings are made by paying less tax and NI, but I just wanted to double check.

Also at the end of the hire agreement, what happens with the bike? I assume it is mine to keep and do whatever I like with, but in all the paper work it isn't explicit in stating this. Will I have a final payment at the end to make or anything like that? All of the wording just seems a little vague.

Thanks!

 

[rvw]

Hi Guys,

I'm looking at getting a Boardman Road Race via Cycle2Work but I'm a little confused. I work for Birmingham City Council and the scheme is run by Halfords. I've just got all the forms printed and the amount I'm getting deducted out of my wages is £54.17 x 12 months, coming to £650 (the total cost I applied for). I assume the savings are made by paying less tax and NI, but I just wanted to double check.

Also at the end of the hire agreement, what happens with the bike? I assume it is mine to keep and do whatever I like with, but in all the paper work it isn't explicit in stating this. Will I have a final payment at the end to make or anything like that? All of the wording just seems a little vague.

Thanks!

The saving is purely the tax and NI - you pay the full cost, but you pay it out of pre-tax salary.

The position on the end payment is worth checking with your employer, as HMRC changed their rules a little while ago. There has normally been a final payment - the 12 payments you make through salary count as hiring the bike, not hire-purchase - but the rules have changed about how this is calculated.

They now have a table of what they consider to be a "fair value" http://www.hmrc.gov.uk/manuals/eimanual/EIM21667a.htm which is far from generous - a bike over £500 is assumed to be still worth 25% of the original cost after a year, which pretty much wipes out the tax savings. Some employers extend the hire period for additional time at a nominal cost, some just charge a nominal amount and account for the rest as a benefit in kind (this is better, as you pay tax on the assumed value rather than actually paying the assumed value) but it all depends on the exact scheme.

And yes, the fact that you've already paid the full market price of the bike is utterly irrelevant in the eyes of HMRC.

 

[Jimbo Xiii]

I just spoke to a guy at Halfords C2W about the final payment. He is saying I would have to pay 20% of the 25% original value, so:
25% of 650 = £162.50
of which:
20% = £32.50

which would be the final payment you would have to make, according to him. I'm still slightly dubious though.
Thanks for the feedback though.

 

[BSRU]

After the year has finished the CycleScheme scheme, offers you the opportunity to hire the bike for another three years for a deposit of 7% of the original value of the bike. After that three years has passed, you can hand the bike back to receive your deposit back or you just become the owner with no further monies changing hands.

 

[rvw]

I just spoke to a guy at Halfords C2W about the final payment. He is saying I would have to pay 20% of the 25% original value, so:
25% of 650 = £162.50
of which:
20% = £32.50

which would be the final payment you would have to make, according to him. I'm still slightly dubious though.
Thanks for the feedback though.

That seems to assume that your employer will gift you the bike for £0 - you then get a benefit in kind (the bike) valued at the HMRC rate of 25% of original value (£162.50) on which you pay basic rate tax (20%, £32.50 - if you aren't a higher rate taxpayer). Even better, you pay this via your tax code in a future tax year, so you'll hardly notice it!

It's still worth checking that the first assumption is correct - not all employers do the same things.

(NB You will not get this in writing. It can't be set down in the original hire agreement, or it becomes a hire purchase agreement and stops qualifying under the C2W scheme. But someone should be able to tell you - informally - what the system is for you.)

 

[Drago]

Two. A Trance X4.

Then next year a Talon. No-one noticed that Talon was the ladies spec in pastel blue... (t'was for the missus)

Our lot have binned it now cos with the new valuation rules at the end of the period there's very little advantage, and the cost of having someone spend time administering it all was outweighing the benefits.