What do I need to know about the cycle to work scheme?
Discussion
Finally, after much cajoling and brow beating from me and others, my employer has agreed to introduce a cycle to work scheme. They've sent out some info today, but it doesn't go into a lot of detail, so I'm going to need to make a call to find out more, but before I do, I wanted to find out what questions I need to ask them.
The main question I have at the moment is what rate they will be using to calculate the buy back amount at the end of the 12 month period. The literature they sent says that we'll be offered to buy the bike at a "reasonable market rate", but it doesn't state what that rate will be.
Is there anything else I need to ask them? Also, how do these schemes work with regard to where you can buy the bike? Can you buy from any participating bike shop or can your employer stipulate a supplier?
The main question I have at the moment is what rate they will be using to calculate the buy back amount at the end of the 12 month period. The literature they sent says that we'll be offered to buy the bike at a "reasonable market rate", but it doesn't state what that rate will be.
Is there anything else I need to ask them? Also, how do these schemes work with regard to where you can buy the bike? Can you buy from any participating bike shop or can your employer stipulate a supplier?
I'm sure there was a thread in here just the other day where the final payment amount was discussed.
There appears to be a reason why you can't know this until your employer asks for it. I wouldn't worry though, from what I've gathered it won't be any more than a monthly payment and some employers just want a few pounds.
Hopefully someone will be along shortly who has done it so that they can give you a bit more info than I can!
There appears to be a reason why you can't know this until your employer asks for it. I wouldn't worry though, from what I've gathered it won't be any more than a monthly payment and some employers just want a few pounds.
Hopefully someone will be along shortly who has done it so that they can give you a bit more info than I can!
TheGreatSoprendo said:
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The main question I have at the moment is what rate they will be using to calculate the buy back amount at the end of the 12 month period. The literature they sent says that we'll be offered to buy the bike at a "reasonable market rate", but it doesn't state what that rate will be.
Due to HMRC's funny tax laws your employer is unable to specify in advance what the final payment will be in order to maintain tax exempt status. It's usually something in the order of 5% of the amount you have paid.The main question I have at the moment is what rate they will be using to calculate the buy back amount at the end of the 12 month period. The literature they sent says that we'll be offered to buy the bike at a "reasonable market rate", but it doesn't state what that rate will be.
i.e. Amount you end up paying is something like 60% + 5% of the new value of the bike over 13 months.
I have heard rumours of people, not at my company mind, who got priced up for 1 x £1,000 bike. Then when they went into the bike shop to collect they ended up with 1 x £700 road bike and 1 x £300 commuter bike.
I can't rememeber who, outside of my company, mentioned this, or indeed if it was a friend of a friend of a friend style urban myth.
Maybe you shouldn't sneakily ask your Local Bike Shop about it, and should forget I posted this.
I can't rememeber who, outside of my company, mentioned this, or indeed if it was a friend of a friend of a friend style urban myth.
Maybe you shouldn't sneakily ask your Local Bike Shop about it, and should forget I posted this.
TheGreatSoprendo said:
Is there anything else I need to ask them? Also, how do these schemes work with regard to where you can buy the bike? Can you buy from any participating bike shop or can your employer stipulate a supplier?
From what you've written I am 99% sure you work for the same company I do.They've stated that we are joining the Cycle2Work scheme. As far as I know this is the Halfords only scheme so you'll be limited to their stock. I've also been told that Halfords can get any brand for you but it can take months. For that reason I've mainly been looking at Boardman roadbikes.
Agent L said:
From what you've written I am 99% sure you work for the same company I do.
They've stated that we are joining the Cycle2Work scheme. As far as I know this is the Halfords only scheme so you'll be limited to their stock. I've also been told that Halfords can get any brand for you but it can take months. For that reason I've mainly been looking at Boardman roadbikes.
Ah bugger, that reduces my (quite lengthy) shortlist to one then. They've stated that we are joining the Cycle2Work scheme. As far as I know this is the Halfords only scheme so you'll be limited to their stock. I've also been told that Halfords can get any brand for you but it can take months. For that reason I've mainly been looking at Boardman roadbikes.
Thanks for the update though. If anyone has any suggestions on how to get a wider choice of bikes in a reasonable timeframe through this scheme, I'm sure Agent L and I will be all ears!
ETA: Apparently Halfords have the UK's largest range of bikes, so that's OK then.
http://www.cycle2work.info/siteadvicecentrebrand
Edited by TheGreatSoprendo on Thursday 13th May 15:49
Little bump here.
Do you work in a Brighton office Soprendo? I see from your profile you live nearby.
Anyway, I want to let you know (if you didn't already) that Freedom Bikes on George St. have joined the scheme so now you will be able to add Trek, Gary Fisher, Cotic and Brompton to your choices.
Please let all your colleagues know.
Cheers
Do you work in a Brighton office Soprendo? I see from your profile you live nearby.
Anyway, I want to let you know (if you didn't already) that Freedom Bikes on George St. have joined the scheme so now you will be able to add Trek, Gary Fisher, Cotic and Brompton to your choices.
Please let all your colleagues know.
Cheers
Edited by Agent L on Wednesday 26th May 11:44
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