Cycle To Work Scheme

Discussion in 'Bulletin Board ARCHIVE' started by Conan Troutman, Jun 30, 2015.

  1. Con

    Conan Troutman Well-Known Member

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    Has anyone taken this offer up at all?

    I have a hybrid and I would like to get a road bike too. This seemed like a very economical way to do it. However, upon further reading you are only "hiring" the bike and not actually buying it. If the money is taken out of your gross salary, you are still paying for it in full but it is cheaper because of the tax allowance not because you are getting a discount on the purchase price. If I get a £600 bike, I should pay £50 out of my gross and about £34 out of my net, which seems like a good deal but is a total waste of money if you don't own the bike - and who would want to lease an item that costs £600 at the cost of £600 and have to give it back?
     
    Conan Troutman, Jun 30, 2015
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  2. Marc

    Marc Administrator Staff Member Admin

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    I have. For me personally, it's a complete giveaway. The way our company does it, is that the residual value at the end of the lease term, is charged through my tax code as a BIK. After which the bike is mine. It's a loophole, as obviously neither the company or the bike shop want it back.

    The only risk you have really, is if it gets nicked before the end of the lease term, i.e. you still have to pay for a bike you don't have.

    My company does it through Halfrauds, although loads more LBS are signed up now. I used Hal****s though, for several very good reasons -

    a) the Boardman Pro Hybrid is pretty much best in class (well, I reckon it is)
    b) i got it when there was a 15% sale on - so £850 was the amount I went for
    c) my work scheme offers 15% of the bike value in bike accessories, if you choose a Halfords bike
    d) i also got a 20% discount card, for all further bike accessories

    So basically i've got a £1000 bike plus £150 worth of stuff, for about £620. Plus all my other stuff I get 20% off. I've saved an absolute fortune..

    The only disadvantage is having to deal with the galactically stupid Halfords staff. They genuinely do not know a fcukin thing about bikes or cycling. Well, the ones on Harborough Hills don't anyway..
     
    Marc, Jun 30, 2015
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  3. LAI

    LAIKINART Well-Known Member

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    The key question is do you cycle to work? (on the cycle you bought on the scheme).
     
    LAIKINART, Jun 30, 2015
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  4. Marc

    Marc Administrator Staff Member Admin

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    no
     
    Marc, Jun 30, 2015
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  5. andytyke

    andytyke Administrator Staff Member Admin

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    Never done but lots at work do, some just get the bike and sell it
     
    andytyke, Jun 30, 2015
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  6. RichK

    RichK Well-Known Member

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    At our place they come up with a market value of the bike at the end of the term and offer you it at that price. The value takes into consideration degredation, age etc. It's never much to buy it.
     
    RichK, Jun 30, 2015
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  7. jedstar

    jedstar Well-Known Member

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    I've done it mate, you pay a final payment (with a debit/credit card) to own the bike, if I remember right my final payment was about £55 after spending about £750 on the bike and a few accessories.
     
    jedstar, Jun 30, 2015
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  8. Cun

    Cunning Stunt Well-Known Member

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    I got one 2-3yrs ago when working for Swinton Insurance from the place at Wombwell.

    Got the maximum £1000 I could under the scheme. Got a £1300 Scott in the sale at £1100 but got it for a grand coz the scheme is a gods send to retailers and many cycle one would be fooked without it(his words)

    So paid 10x£55 via my salary and a final £65ish to retain and own the bike(and a few £100s accessories thrown in)

    So to summerise, £1500ish of tackle for £600ish. No down payment, no lump sum deposit! No brainer for me. Oh and 2 x free services aswell.
     
    Cunning Stunt, Jun 30, 2015
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  9. Eaststand Lower

    Eaststand Lower Well-Known Member

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    I did it last year for a £600 Scott and £135 worth of extras (helmet lights lock etc) paid 10 installments of £40 at the end of the 10 months I could either carry on paying the rest in instalments or buy it outright for £55.

    No brainier really
     
    Eaststand Lower, Jun 30, 2015
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  10. Con

    Conan Troutman Well-Known Member

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    Thanks for the responses everyone.

    As all have said, it does sound like a no brainer - provided the final payment is reasonable. We have a meeting about it on Thursday so I will see if they can give any figures.
     
    Conan Troutman, Jun 30, 2015
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  11. RichK

    RichK Well-Known Member

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    RichK, Jun 30, 2015
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  12. Con

    Conan Troutman Well-Known Member

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    Thanks for this. Although 25% does seem a bit steep, it would still mean getting the bike for less than the rrp so it's still a good deal.
     
    Conan Troutman, Jun 30, 2015
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  13. RichK

    RichK Well-Known Member

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    Don't forget to take vat off before calculating. So if it's £1000 it's actually 25% of £834.
     
    RichK, Jun 30, 2015
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  14. Marc

    Marc Administrator Staff Member Admin

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    it's not 25% though, if they treat it as BIK. it's 40/20% of that, depending on your tax bracket..
     
    Marc, Jun 30, 2015
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  15. Con

    Conan Troutman Well-Known Member

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    Conan Troutman, Jun 30, 2015
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  16. Marc

    Marc Administrator Staff Member Admin

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    nice enough. sora is a bit $hitty though, in my experience. i'd consider pushing the boat out and maybe even maxing the cycle to work amount. i'd be looking at at least tiagra, and 105 if you push up to the £1000 limit
    http://www.bikeradar.com/road/gear/article/best-road-bikes-under-1000-29719/
     
    Marc, Jun 30, 2015
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  17. MarioKempes

    MarioKempes Well-Known Member

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    We run the scheme but seeing as my office is over the other side of the Pennines and my customers are all over the UK I can't participate.
     
    MarioKempes, Jun 30, 2015
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  18. Con

    Conan Troutman Well-Known Member

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    http://www.cyclesolutions.co.uk/p73589/cannondale-caad8-tiagra-6--2015-road-bike

    Or

    http://www.cyclesolutions.co.uk/p73606/cannondale-synapse-105-5-disc--2015-road-bike
     
    Conan Troutman, Jun 30, 2015
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