Cycle to work scheme - Im new
Discussion
No one cares what you use it for. You could buy a MTB and use it exclusively at Bike park Wales and no one would question it.
Not sure what you mean about 0%. Price is agreed, you apply for a voucher, go pick it up and the amount is deducted from your gross pay over 12 months in a nut shell.
There's stuff in there about handing it back or paying a national fee at the end to own it but again I've never heard of anyone actually doing that, you just keep the bike and rinse and repeat if you want to.
Not sure what you mean about 0%. Price is agreed, you apply for a voucher, go pick it up and the amount is deducted from your gross pay over 12 months in a nut shell.
There's stuff in there about handing it back or paying a national fee at the end to own it but again I've never heard of anyone actually doing that, you just keep the bike and rinse and repeat if you want to.
It's been a while since I bought my first road bike this way. Never ever used it to commute. Nobody cares
At the end of year 1 I could pay a fee to own it. I think it was pitched as a 'fair value' to avoid tax implications. OR you can wait 3 more years (I think) and you get it for free as it's worth 'nothing'. I did the latter... but then again I sold it during that period anyway. Pretty much worked out that I had a free bike for 3 years
At the end of year 1 I could pay a fee to own it. I think it was pitched as a 'fair value' to avoid tax implications. OR you can wait 3 more years (I think) and you get it for free as it's worth 'nothing'. I did the latter... but then again I sold it during that period anyway. Pretty much worked out that I had a free bike for 3 years
The "exit" fee will be paying the balance if you leave the job, or, a notional "£1" to buy it off the company.
Some companies charge a 10% admin fee!?!?!
As for use. My office is about 7 metres from my front door. I checked. No one cares, or checks. (I have my own company so did it through my books as "plant and equipment" - so it depreciates and isn't taxed, plus got the vat back. Made a £6300 bike end up costing me aroud £4000
Some companies charge a 10% admin fee!?!?!
As for use. My office is about 7 metres from my front door. I checked. No one cares, or checks. (I have my own company so did it through my books as "plant and equipment" - so it depreciates and isn't taxed, plus got the vat back. Made a £6300 bike end up costing me aroud £4000
Gren said:
It's been a while since I bought my first road bike this way. Never ever used it to commute. Nobody cares
I think the wording has changed now anyway to something "promoting cycling as a way of staying healthy in the workplace". Something like that. I had a cursory glance because I was thinking of using it to replace my track bike which obviously is quite a hard sell when it comes to commuting...jrb43 said:
I think the wording has changed now anyway to something "promoting cycling as a way of staying healthy in the workplace". Something like that. I had a cursory glance because I was thinking of using it to replace my track bike which obviously is quite a hard sell when it comes to commuting...
Lot of single speed usage for commuting 
not so much fixed gear I've always found it to be the cheapest way to buy a bike. Be wary of shops adding a fee if you are buying anything on sale and walk away of the deal isn't right for you. Optional final payment is a bit hit and miss - many years I haven't had to pay it but some years I have. Either way I save big on a new bike or equipment.
jamm13dodger said:
I've always found it to be the cheapest way to buy a bike. Be wary of shops adding a fee if you are buying anything on sale and walk away of the deal isn't right for you. Optional final payment is a bit hit and miss - many years I haven't had to pay it but some years I have. Either way I save big on a new bike or equipment.
Yep, I wanted to use my Cycle2work voucher at a different shop other than Halfords but they said they'd add 10% to the advertised price so I didn't. WPA said:
anonymous said:
[redacted]
Sounds fair to me, all the cyclesheme providers charge retailers commission, why should they loose out even more so with how difficult things are in the industry.If they pulled the C2W scheme it would decimate what's left of the cycling industry.
johnpsanderson said:
I ve always had to pay the final fee but it still ends up worthwhile. I heard from my LBS that the schemes demand a cut from the retailer which leaves them with a tiny margin. This explains the small fee that some shops add on
It's not small, it's £500 on a mid range ebike for example. ChocolateFrog said:
johnpsanderson said:
I ve always had to pay the final fee but it still ends up worthwhile. I heard from my LBS that the schemes demand a cut from the retailer which leaves them with a tiny margin. This explains the small fee that some shops add on
It's not small, it's £500 on a mid range ebike for example. Some shops are already refusing to accept c2w or adding the commission on.
WPA said:
ChocolateFrog said:
johnpsanderson said:
I ve always had to pay the final fee but it still ends up worthwhile. I heard from my LBS that the schemes demand a cut from the retailer which leaves them with a tiny margin. This explains the small fee that some shops add on
It's not small, it's £500 on a mid range ebike for example. Some shops are already refusing to accept c2w or adding the commission on.
I got stung for an exit fee about 4 years ago. I unexpectedly left the job about 15 months after buying the bike (so I had “paid off” the full price from gross pay).
25% of £6,000 was a painful addition to the P11D statement for the year. This was Green Commute Initiative which advertise as no exit fee. My employer (Big 4) said they disagreed with GCI’s tax interpretation …
25% of £6,000 was a painful addition to the P11D statement for the year. This was Green Commute Initiative which advertise as no exit fee. My employer (Big 4) said they disagreed with GCI’s tax interpretation …
Im looking at using c2w for the first time, to replace my 4 yr old eBike, saving some money and reducing my tax. If I spend a voucher for say £5k, does that reduce my taxable pay by that amount for the year? Ive enjoyed my eSommet but I think a 150mm travel bike might be the sweet spot over 170mm
Some of this comes down to if the employer runs their own scheme or uses one of the supplier.
Using the suppliers is best for the employee generally as the rules are generally simpler. The scheme buys the bike then invoices the employer who claim back their money from the employee over the 12 months. The bike is owned by the scheme and you have a debt from your employer. Once the debt is repaid at the end of 12 months the scheme let you buy the bike, or pay a lower fee to rent for 4 more years then own it. Either way you never hear from the supplier again.
However your employer buys the bike then you are essentially leasing it from them and they can add different rules after the first 12 months when essentially the debt is repaid.
However most employers go through a scheme which makes it simpler for them admin wise and its a no brainer for the employee provided you intend to stay in your job for the next 12 months!
Using the suppliers is best for the employee generally as the rules are generally simpler. The scheme buys the bike then invoices the employer who claim back their money from the employee over the 12 months. The bike is owned by the scheme and you have a debt from your employer. Once the debt is repaid at the end of 12 months the scheme let you buy the bike, or pay a lower fee to rent for 4 more years then own it. Either way you never hear from the supplier again.
However your employer buys the bike then you are essentially leasing it from them and they can add different rules after the first 12 months when essentially the debt is repaid.
However most employers go through a scheme which makes it simpler for them admin wise and its a no brainer for the employee provided you intend to stay in your job for the next 12 months!
Gassing Station | Pedal Powered | Top of Page | What's New | My Stuff