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Basically there's what the tax man has told them (and everyone else), large companies have put all their rules on the system and pointed to it and said "look mr tax man, only things we specify can be bought with a voucher, no bikes above a thousand pounds or race specific parts", the guy in the shop charges the voucher to a thousand pound bike they sell loads of and does what ever you ask.
This may not be the case if the shop has been audited recently and the manager has got into shit.
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Can someone help me understand how the cycle to work scheme works?
I have a bike that cost £950 total on it and I'm paying £79 a month for it, which is correct using their calculator - http://www.cyclescheme.co.uk/calculator.Total cost of bike and accessories: £950
Net cost of bike and accessories, including finance and admin costs (if applicable): £950
Income tax saving over hire period: £190
Employee NI saving hire period: £114
Final cost of bike & accessories: £646
Total saving: £304Gross salary sacrifice, based on 12 month hire period (this should be the figure displayed on your hire agreement): £79.17
Net salary sacrifice, based on 12 month hire period: £53.83
Percentage saving over RRP: 32%£80 x 12 = £960 so I'm not sure how I'm saving that £300?
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FFS. Just found out that our crap Cycle-to-work scheme - Computershare Salary Extras - takes a "commission" from the cycle shop of 10% of the cost of the bike.
Planet X pass this cost on to the buyer (which I think is absolutely fair and I have no complaint about PX).
Pretty galling to be paying an extra £100 just to prop up Computershare, who appear to staffed by idiots. The £100 will apparently cover the cost of them taking two weeks to send me a letter. Good money if your only overhead is a callcentre full of numpties who aren't required to know anything about anything, and "I'm just going to put you on hold while I check that for you, mmmkay?"
EDIT: I'm relatively senior in the company I work for - wondering if I could do the paperwork to sort this out directly and cut the muppets out.
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It might be worth checking with your HR that they are indeed with Evans ride to work scheme, not Cycle to Work Scheme
With us for example, we are with Cycle to Work and we can choose to have a non shop specified voucher and if you don't ask, you get given a random 1 that might be with Cycle Surgery or Evans. If yours is with Evans', then forget what I said.
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I'm running our company c2w and as it was explained to me its a bit of a gray area if you spend more than the 1k. If your company top it at 1k and you pay evans the extra 700 quid for that must have shiny bike then in theory you could lose out. C2w is essentially leasing the bike from the company for the monthly amount and should something go wrong, you know like a flying uppercut to a managing director and you find yourself out of work. The bike belongs to them. Now in theory the company will almost always simply let to pay of the remainder and walk away with the bike. BUT if they want to be cunts they could keep the bike ( its their property you just lease it) and youre stuffed. If its a 1k bike its not the end of the world, you flip them off and they are stuck with both the remaining lease debt and a bike they'll have to find a new owner for. But if you top up then they get a 1.5k bike for 1k. Its not a likely scenario but worth thinking about. I also state right now that I might have got the wrong end of the stick when the nice woman explained it to me.
Officially the company can extend beyond 1k and you make huge saving on the full amount but this is at both the discretion of the company and whoever they use to run the scheme.
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FFS. Just found out that our crap Cycle-to-work scheme - Computershare Salary Extras - takes a "commission" from the cycle shop of 10% of the cost of the bike.
Pretty sure this is the norm.
It certainly was the case in the last shop I worked which used cycle to work and cyclescheme I think.
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Yeah, but companies can sign up for a scheme and do the admin themselves. It's very basic. Yet companies like Computershare say to companies, "We'll do it all for you without charging you a penny" while then going to the bike company and saying, "we're only gonna give you 90% of the voucher price." The bike company then has the choice to accept the hit, pass it on to the scheme user, or just refuse.
As I say, easy money for the muppets in Computershare.
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I've done the cycle to work scheme before and was issued with a generic company cheque equal to to the value of the bike after clearing it with HR.
Does anyone know the implications for the cycle to work scheme if I had purchased it on my own credit card and simply filed the cost in my expenses?
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Rumours George has got it in for all salary sacrifice schemes tomorrow
It's always felt like a bit of a badly implemented dodge (in tax terms as it's an obvious benefit in kind, which is why all of those hoops have to be jumped through to allow the bike to depreciate before it can be transferred to you).
Surely the simplest way to encourage cycling (if they want to do that, which they should do) is just make bikes and related accessories zero rated for VAT.
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If I were going to buy another bike now I'd seriously consider a new credit card with 0% on purchases for 24 months (the 0% usually only applies to purchases within the first 3 months), buy a bike on it, chop the card up and then make the minimum repayments (usually 2.5% of balance) and then pay the final chunk off before any interest kicks in.
Sure the cycle scheme saves you 25% (or 35% if higher rate tax payer) once you include the 7% end of hire fee (for a bike >£500) but it's a bunch of hassle and often limits you to non-sale bikes.
End of year sales can often give you more than 30% off (especially last year's models) so you've got a chance of saving more than you would with the cyclescheme and spread the repayment over a longer period. You then also don't have to worry about vouchers, end of hire fees, or even £1000 or £1500 limits. Also, you're free to change jobs and not have to buy your way out of the scheme.
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Has anybody tried the PROc2w to get a bike over £1,000 on a cycle to work type scheme?
I'm looking to get something over the £1,000 limit, and I'm trying to work out what options are available (if any).
So far, it appears the Halfords scheme will (sort of) allow multiple vouchers to be issued at the same time.
Can I take part in more than one scheme?
Technically, yes. You can apply again each time your employer runs a scheme. Your employer may decide though to prevent you from joining another scheme until your first Hire Term has lapsed.Following a phone call with the Halfords Cycle2work scheme, it appears the actual HMRC/FCA rules state that each voucher is limited to £1,000. However, it appears there isn't a limit to the amount of vouchers you can have running concurrently, as each is a separate agreement. The only 'rule' which would impact this is that the scheme will not allow the applicant to go below the national minimum wage.
The other option is the PROc2w, which doesn't particularly say how it achieves its results but seems to be advertised with a number of bike shops. The only downside, is that whilst they welcome talking to your employer, their website is utter shite, and I'm be embarrassed to show that to our Finance/HR department as I'm sure they'll think its a scam.
Any thoughts? Has anybody managed to get over the magic £1,000?
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paying off my Trek Stache 5, which was £1300
Does your place of work already have the Consumer Credit Licence, or did you top up the value of the £1,000 voucher? I don't suppose you have a link anywhere to the £1,500 for the Halfords one?
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About
Cycle to work scheme
Posted by
@BigFatAl
Evans are a bit strange. I couldn't buy Marathon plus tyres for a Brompton via their website as they weren't covered by the C2W voucher, but they ordered them in-store no problem.