Cyclescheme question

[Welshdan]

Good day all.

Is it normal for bike shops to restrict what bikes you can buy using Cyclescheme ?

I've finally recieved my Cyclescheme vouchers after a delay due to an administrive cock up. I found a bike that fits well, rides well and looks great. When I told the LBS that I wanted it and went to hand him the voucher, he told me I can't have that bike because its in the Sale at a reduced price. It was on sale for less than my voucher's worth. Is this normal?

 

[Kevin Alexander]

I could be wrong but I think its only valid on non-sale bikes as you are already receiving a discounted price due to the tax reduction. Could be wrong though. Best to contact your work.

 

[Booyaa]

Yes, they do not normally offer sale bikes on the scheme. This should have been pointed out to you before you got your voucher (assuming you got a quote etc. from them) as you normally identify the bike first to ensure stock etc...

 

[Welshdan]

Thanks for the replies

Our cyclescheme voucher is issued by our employer and then when issued we can go and look for a bike so unfortunately no heads up. I offered to pay the non sale price but he said no.

I will keep looking

 

[vickster]

I don't know why he won't take the non sale price, maybe the scheme rules don't allow? Normally, retailers have to pay a fee to the scheme administrators, hence only full price bikes

Go to a different store? Or get the non reduced 2014 model. What bike is it?

 

[Welshdan]

It was a Corratec Dolomiti 2011.

 

[vickster]

Are there no newer unreduced models?

Otherwise, get on interest free credit and forget cyclescheme

 

[BSRU]

My first cycle scheme bike was a sale bike, the lbs just added 10% onto the sale price to cover the cycle scheme fee.

 

[2Loose]

I had the same experience as BSRU once. The shop were happy to add a 10% admin fee to cover the scheme, but I have heard of some shops that can't use a calculator to add 10%, or won't for some reason.

 

[mynydd]

I got my bike last week on the scheme at a sale price. I was also told whilst my quote was being filled out that I didn't have to have the bike I was quoted for, that I could have whatever I wanted up to that amount when my voucher arrived. Bike and equipment

 

[Profpointy]

Although I benefitted under the "old" rules ( where the "balloon" payment was trivial) but not sure it's really worth the faff and limitations now, given 25% or whatever at the end, +"corkage", +no "sale" bikes etc. at base rate tax must be a very marginal deal - maybe even losing money compared with shopping around.

Sorry, not much help to the op, but Hopefully you can find someone prepared to sell you what you want albeit adding in corkage

 

[Welshdan]

I got my bike last week on the scheme at a sale price. I was also told whilst my quote was being filled out that I didn't have to have the bike I was quoted for, that I could have whatever I wanted up to that amount when my voucher arrived. Bike and equipment

Where was that to ? If you don't mind me asking

 

[Julia9054]

I got my bike last week on the scheme at a sale price. I was also told whilst my quote was being filled out that I didn't have to have the bike I was quoted for, that I could have whatever I wanted up to that amount when my voucher arrived. Bike and equipment

Me too, 6weeks ago. Evans Cycles - £1500 reduced to £999. Didn't even occur to me that it might have been a problem until I read it on here.

 

[bozmandb9]

Technically you can only apply the voucher on non sale stock.

Also, apparently the cycle shop lose 12% when you buy through cycle scheme, so even if they could, they wouldn't want to accept the voucher on sale stock.

 

[bpsmith]

Although I benefitted under the "old" rules ( where the "balloon" payment was trivial) but not sure it's really worth the faff and limitations now, given 25% or whatever at the end, +"corkage", +no "sale" bikes etc. at base rate tax must be a very marginal deal - maybe even losing money compared with shopping around.

Sorry, not much help to the op, but Hopefully you can find someone prepared to sell you what you want albeit adding in corkage

You can opt to accept the bike as a benefit in kind after 12 months and just pay the tax on it:

In the case of the 12 month old £1,000 bike this value would be £208.25 (25% of £1,000 less vat) the taxman will charge tax on the £208.25 which for a lower rate (20%) taxpayer, will be £ 41.65. Higher rate (40%) tax payers will pay £83.33. The BIK value is the value of the bike and not any safety equipment such as clothing etc.

Employees don't even have to find this sum because the P11d has the effect of adjusting their tax code up slightly for the following year. So the tax due will be recovered by HMRC over the course of the following year. This is about £3.47 per month for our lower rate example. The figures will vary slightly depending on the employer's VAT status and of course the original purchase price of the bike but this isn't so far from the original values.

Not as bad as you made it sound?

I just got a 2014 Defy 1, for equivalent of £721.65 (including final tax) with 12 months interest free. Can it be found cheaper anywhere?