Has Anyone Set Up and Run a Cycle-to-Work Scheme?

[threebikesmcginty]

I asked my lazy and incompentent head office last year about joining the cycle to work scheme - their reply was 'we thought about it but we're a bit busy at the moment, we'll get back to you'.........then nothing!

I was wondering about offering to set it up and run it myself. Countrywide we have just under 200 employees.

Has anyone done this? - is it easy to set up and do the admin?

This is of course purely for the good of the work force and not in anyway selfishly motivated by wanting a shiney new bike on the cheap.

Any advice would be gratefully received - TIA

 

[fudgedog]

I did it for my company we employ 15. I got my bike through it, that was the incentive and it was easy. Another member of staff is choosing a bike this weekend to put through the scheme.

 

[threebikesmcginty]

I did it for my company we employ 15. I got my bike through it, that was the incentive and it was easy. Another member of staff is choosing a bike this weekend to put through the scheme.

Thanks for your reply FD - is/was there much paperwork to trawl through?

 

[fudgedog]

No it ws really easy, but this was for small company, you'd have to get your accounts, payroll and finance director on board for your size. For me it was worth it I got £1000 bike and it will cost me about £580.

 

[therams]

I did it for my company, but there are only 5 of us, this made it very easy.

I think the hardest part is getting the approval from the correct people.

http://www.cyclechat.co.uk/forums/showthread.php?t=25386

 

[dubhghall]

Yes, it is dead easy to set-up. I set our company up through http://www.cyclescheme.co.uk/ about 18 months ago. I have had two bikes through it !
There is a bit of paperwork to read - as in effect it is an HP contract, but all the administration is internet based.

But as FD says, you would need to get approval from your Financial Director as the company has to pay for the bikes in full before the voucher is issued. Assuming they are VAT registered the VAT can then be reclaimed. However, the company don't get fully reimbursed for a further 12 months - so it could have a fairly major impact on cash flow.
It helps if whoever does the PAYE is a cyclist too as there is obviously a bit of work at the start and end of the contracts,

Good Luck - keep pushing them . . . .

 

[threebikesmcginty]

It helps if whoever does the PAYE is a cyclist too as there is obviously a bit of work at the start and end of the contracts

Our Co Sec is a keen cyclist so that may help. You know how these things go though, they just look for the obstacles rather than the benefits.

Meeting with the Big Nobs next week and intend to grind them into submission - they've dilly-dallied long enough!

Thanks all!

 

[DanPrice]

dubhghall, or anyone in the know - When you say the company has to pay the full cost before voucher is given, is this full cost of the bike after the savings of tax etc, or full cost of bike before any savings?

For example i used the employee calculator and it said for a £2000 bike id pay approximately £1200.

Would my employer have to pay £2000 for the bike, claim VAT back, then wait for the rest at the end of the 12 months?

The reason i ask is, i was going to try and talk him in to signing up to it, but as its a very small company of around 4-5 people, if he would have to pay £2000 then wait 12 months for the savings i dont think he'd do it .

Thanks

 

[therams]

The limit for the cost of the bike is £1000, so sorry your £2000 bike wont happen. Thats why there is so much competition in the sub £1000 bike market.

Also the company pay the full price up front, including VAT. They can then claim the VAT back in that quarter. They then get the rest of the money over 12 or (18) months, via NI savings and salary sacrifice. So it could cause cash flow problems. Overall they do save money though as they also save in the NI contributions.

 

[therams]

Just to add, for a small company its very very easy to administer, you don't need to involve a 3rd party. Make the point that its a cost effective employee benefit to offer.

 

[threebikesmcginty]

Overall they do save money though as they also save in the NI contributions.

Oooo - useful ammo thanks!

 

[therams]

Oooo - useful ammo thanks!

They can quote it in there annual reports as well, if they care about having a "Green" image.

 

[dubhghall]

Yes, I agree with therams, the company has to pay the full cost of the bike including VAT The VAT can then be claimed back at the appropriate time. The prime savings come to the employee as it becomes a VAT excempt bike - an immediate 15% saving. The employee then pays his employer back out of gross salary, as a sacrificail deduction, saving him both the income tax and NI - sorry this is maybe all obvious. Yes, the company, does save the NI contributions too. If you are paid a company pension, you should still get the employer contribution on your FULL salary - i.e. before the sacrificial deduction has been made. Worth checking!

Technically you can purchase a bike up to the value of £10,000 including VAT. However, for any hire purchase agreement over £1,000 the lender has to be licensed - unless you work for a bank or HP company etc this isn't likely. Hence the £1k limit. You can however pay anything over £1000 yourself, directly to the bike shop.

 

[therams]

Hence the £1k limit. You can however pay anything over £1000 yourself, directly to the bike shop.

Doh, probably better that I did not know this

 

[DanPrice]

therams- Thanks for enlightening me, much appreciated.

That doesn't seem too bad i suppose, im sure id be able to talk him in to it, even if i have to give him £1000 then let him reimburse me on the savings at the end of the year, im still saving.

I dont suppose you can pay extra, say £1000 on cycletowork scheme, then pay an additional £500 for an upgrade (obviously cycletowork wont cover this proportion)