Hlafords C2W facts please.

[cyberknight]

Has anyone started the new scheme and has definite figures for calculation of the final payment please?

I have heard various rumours ranging from 25 % of the value of the bike or 25% of the vat.

I did try ringing our HR but they were not very forthcoming and all i got was " please wait for the announcment of the scheme "

I have convinced SWMBO that as mini ck number 2 is on the way that if i do not get a new bike now it will be never ..... but if they are going to sting me for 25 % of the full bike value at the end it can effect what bike i can afford....

 

[suecsi]

Unfortunately Halfords own C2W website doesn't cover the Fair Market Value question - it is mentioned at the end of the hire period, but no calculations are shown, just "we'll help you out when we get to that bit".

Whilst it isn't the same provider, Cyclescheme have their FMV based on the official HMRC guidance, so one would hope Halfords would stick to a similar calculation.

Cyclescheme cover this off by contacting the employee directly at the end of the initial hire term (usually a year) and offering them an extended hire agreement, for which you pay a small deposit and at the end of 4 years, you get the bike (though the ownership issue is still a little fudged language wise).

There has been a lot of debate about the ownership issues and it is argued that getting a bike on some sort of 0% credit over 12 months deal might be a better idea, because at least you own it at the end of the term.

http://www.cyclesche...tes/hmrc-update

 

[SquareDaff]

We run the Halfords Scheme here. The Final Value is based on the purchase value of the bike. I believe it's 18% for bikes <=£400 and 25% for bikes >£400. At our particular company they only charge you your usual tax rate on the remaining value. I believe this is at the companies discretion but apparently it is a popular way of doing this with most companies. This months Cycling Plus have an article on the scheme's "ins and outs and tricks". Might be worth a read.

 

[cyberknight]

We run the Halfords Scheme here. The Final Value is based on the purchase value of the bike. I believe it's 18% for bikes <=£400 and 25% for bikes >£400. At our particular company they only charge you your usual tax rate on the remaining value. I believe this is at the companies discretion but apparently it is a popular way of doing this with most companies. This months Cycling Plus have an article on the scheme's "ins and outs and tricks". Might be worth a read.

I am hoping its the later as if its 25 % of 25 %? if thats you mean it means i get to go from a race at £650 to the comp at £799.

To this ..

 

[SquareDaff]

I am hoping its the later as if its 25 % of 25 %? if thats you mean it means i get to go from a race at £650 to the comp at £799.

I do mean 25% of 25% Final Market Value - as I say, check with your company as it's their choice to do that - but it seems to be common practice.

 

[wiggydiggy]

I finished my 12months for C2W with Halfords in Dec '10 and was quoted a fixed sum based on a range e.g. my total taken was £300 and I was asked for £20 or about 7%.

 

[cyberknight]

I finished my 12months for C2W with Halfords in Dec '10 and was quoted a fixed sum based on a range e.g. my total taken was £300 and I was asked for £20 or about 7%.

Thanks, the rules changed in april i believe, rather thna a token payment it can be a lot more,up to 25 % of the bike value dependent on how finickty you employer is...

 

[exbfb]

There are two ways to do this - I'm on cycle to work.


Either they charge you the Inland revenue decided value depending on whether or not you're above or below £500. 18% if below, 25% if above.

However, you employer can choose to give you the bike as a benefit in kind. At that point, you are due to pay tax on the benefit in kind. This is added to your tax code for year two.

18% of £500 is £90, so for my £500 Trek, they could charge me £90 to tranfer ownership to me.

Or option two, give me the bike as a benefit in kind and charge me tax on it, which is what they're choosing.
Basic rate tax on £90 is £18

I'm paid four weekly, so that means in year two I'll pay an extra £1.38 in tax every wage for receipt of that benefit in kind.

Regarding choice of bike.
Even on Halfords C2W, you can have lots of choice.
I got a Trek 1.1 from Alpine Bikes in Glasgow, all done through C2W.
A workmate got an Orbea.

I understand the Boardman bikes are very good, but you don't have to if you don't want to.