Cycle Scheme Stitch up!

[Zippee]

Our HR team originally stated a 5% fair value which is a primary reason I took up the scheme which is with Evans. They have stated to us that anyone who joined the scheme prior to the HMRC announcement will only pay the 5% originally stated and that the company will pick up the additional costs.

[sidaorb]

I've just had the information from Cyclescheme sent through, just rung them to get some clarification and it looks like this...

Bike cost £1000.00
18 months @ £32.00

After 18 months a continuation deposit is payable 3%-7% (for £1000 is 7%) = £70.

After further 25 months the final valuation fee for the bike is 7% ie £70, the continuation deposit you have paid is then ofset against this, so nothing further to pay.

[OneDs]

HMRC table below
<500 >500
1 year 18% 25%
18 months 16% 21%
2 years 13% 17%
3 years 8% 12%
4 years 3% 7%
5 years Negligible 2%

6 years & over Negligible Negligible

So your entering into a 4 year agreement (48 months) 18 + 25 = 43 so I'm not sure how they are cutting 5mths of it(Unless they are taking 1 month past 3.5 years to be 4 years).

Anyway so long as we don't have to transfer the bike to them I'll be fine with that.

Edited by OneDs on Thursday 7th October 11:06

[a boardman]

I was told in a local bike shop that the final payment is based on the bike cost and does not including any extra items that may be added. ie helmet lights etc.....

[sidaorb]

OneDs said:

So your entering into a 4 year agreement (48 months) 18 + 25 = 43 so I'm not sure how they are cutting 5mths of it(Unless they are taking 1 month past 3.5 years to be 4 years).

Cyclescheme said this morning as it's 1 month over the 3.5 it's rounded up. Doesn't seem a bad deal still.

[Session]

prand said:

I agree - I found our C2W scheme not as good as it looked on paper.

My charges were:

a) £1000 bike - no discount on purchase
b) 10% "admin" fee (£100)to the management company
c) 5% final purchase (£50)

You shouldn't have to pay an admin fee, that comes out of the bike shops payment.

[OneDs]

4 years seem about right to me for a reasonably good bike and reasonably serious commuter, about the time you'd be look to upgrade completely or replace some of the major drive train components, a bike every year is just farcical and probably what drove the HRMC to this point in the first place.

[a boardman]

Session said:

prand said:

I agree - I found our C2W scheme not as good as it looked on paper.

My charges were:

a) £1000 bike - no discount on purchase
b) 10% "admin" fee (£100)to the management company
c) 5% final purchase (£50)

You shouldn't have to pay an admin fee, that comes out of the bike shops payment.

some companies like ribble cycles will charge an admin fee.

http://www.ribblecycles.co.uk/publish.asp?what=cyc...

[sidaorb]

Session said:

prand said:

I agree - I found our C2W scheme not as good as it looked on paper.

My charges were:

a) £1000 bike - no discount on purchase
b) 10% "admin" fee (£100)to the management company
c) 5% final purchase (£50)

You shouldn't have to pay an admin fee, that comes out of the bike shops payment.

Appears to be a regular thing for the shop to charge the client for the 'charge' imposed by cyclescheme for using there service ie 10%, mine wanted £100, but negotiated it down to £50 and a few freebies thrown in.

[prand]

sidaorb said:

Session said:

prand said:

I agree - I found our C2W scheme not as good as it looked on paper.

My charges were:

a) £1000 bike - no discount on purchase
b) 10% "admin" fee (£100)to the management company
c) 5% final purchase (£50)

You shouldn't have to pay an admin fee, that comes out of the bike shops payment.

Appears to be a regular thing for the shop to charge the client for the 'charge' imposed by cyclescheme for using there service ie 10%, mine wanted £100, but negotiated it down to £50 and a few freebies thrown in.

We didn't have a purchase from shop option on this particular scheme. I work for a big company who likes to outsource these sort of things, so a management company took on the administration, and we all had to purchase the bikes from Halfords.

[thetrash]

a boardman said:

I was told in a local bike shop that the final payment is based on the bike cost and does not including any extra items that may be added. ie helmet lights etc.....

Happy days, have a recipt for a £150 cart horse and £850 worth of top end lights,helmet,jacket,etc. Could be the way to go!!

[russ_a]

thetrash said:

a boardman said:

I was told in a local bike shop that the final payment is based on the bike cost and does not including any extra items that may be added. ie helmet lights etc.....

Happy days, have a recipt for a £150 cart horse and £850 worth of top end lights,helmet,jacket,etc. Could be the way to go!!

Chap here has just been told that all accessories are included in the final payment.

[Theoldfm]

sjg said:

Indeed.

Of course, the answer is that it's a good way for the middle class to buy posh road or mountain bikes that will never be used for their commute, and doing it yearly (selling last years one second-hand for about what was paid for it) keeps them in shiny new bikes all the time.

I'm amazed the scheme still exists, tbh.

+1

It's a great scheme - I am on my 2nd shiny new bike now. OK so if I waited until the end of season sale then I could get the same deal elsewhere but all the same, shiny new bike, interest free, spread over 12 months, 15% off list price. What the heck!

Edited by Theoldfm on Thursday 28th October 21:31

Edited by Theoldfm on Thursday 28th October 21:34