The Bike to work scheme site http://www.cyclescheme.co.uk/ seems to suggest you pay 15%(market value??) of the original value of the bike at the end of the term, has anyone here actually paid that amount or do you leave the bike in the ownership of the company until they write it off? Or have you been asked to pay higher or lower than this amount?
Bike to work scheme - how much do you pay at the end?
- Thread starter The Ken
- Start date
Legacy555
Retro Guru
Rubbish Tax people
I was chating to my brother in law about this very topic, he's an accountant.... never mind, however he was saying that it is not 15% that you pay, you could end up splashing out 50% of the value of the bike, also the company is not under any obligation to sell you the bike, if they let it go for anything less than 15% the tax people can tax you for it as they see it as a gift from the company to you. some people may have been able to get the bike for 15% but the tax people are not happy with that percentage... Rubbish I know. We had a long chat, I nearly fell asleep twice.
Also if you leave your employment you still have to keep paying for the bike although the bike stays with your emlpoyer, you could end up paying more for the bike than just buying it yourself,
I was chating to my brother in law about this very topic, he's an accountant.... never mind, however he was saying that it is not 15% that you pay, you could end up splashing out 50% of the value of the bike, also the company is not under any obligation to sell you the bike, if they let it go for anything less than 15% the tax people can tax you for it as they see it as a gift from the company to you. some people may have been able to get the bike for 15% but the tax people are not happy with that percentage... Rubbish I know. We had a long chat, I nearly fell asleep twice.
Also if you leave your employment you still have to keep paying for the bike although the bike stays with your emlpoyer, you could end up paying more for the bike than just buying it yourself,
option added tallpaul 
Legacy555, that's what we thought at my work, a 1000 bike is going to be worth a lot more than £150 after 12 months, but as Tallpaul shows some companies let them go for nowt, does the taxman catch up with these eventually?
The way we see it if you have a fair payment at the end of the term you might actually be paying more for the bike.
I read of the cyclescheme site that employers can hand ownership of the bike to the scheme at the end and then they offer it to the employee, does anyone have experience of this method?
Legacy555, that's what we thought at my work, a 1000 bike is going to be worth a lot more than £150 after 12 months, but as Tallpaul shows some companies let them go for nowt, does the taxman catch up with these eventually?
The way we see it if you have a fair payment at the end of the term you might actually be paying more for the bike.
I read of the cyclescheme site that employers can hand ownership of the bike to the scheme at the end and then they offer it to the employee, does anyone have experience of this method?
The idea is to get people off Mcdonalds and onto bikes - the taxman is not really interested as far as I know. Who is going to check the value/condition of the bike. A long commute for a whole year in wind, rain, hail snow etc. Bike could be worthless.
I think it really depends on your company and how anal the accountant is.
Ours just gives you the bike when it's paid for.
I think it really depends on your company and how anal the accountant is.
Ours just gives you the bike when it's paid for.
Mine was sold to me at the same cost as one monthly payment.
Still not sure of the worth. £1000 worth of bike & stuff, 18months at £50 (before tax, so would normally have paid 20% tax on that amount. One last payment of £50. It's too complex for us mortals!
However, i've ended up with a good bike, lock, lights and waterproofs without really feeling the sting in my wage packet. It felt like about £10 a week missing bottom line.
The company has just started it again and i've just spent another £1000 so wage will stay the same. Not had / not missed? this is my third time on the scheme.
Just looked at the vote and it looks like i'm the only fool taker of the scheme and 6% was the final payment. There are a few ways to look at this, the first bike I got I sold and got back about 1/2 the original purchase price. The 2nd bike, a Brompton is a keeper because it suits my Leeds to York commute, what other situation would cause you to spend £700 on a folding bike? Because it came from salary sacrifice the scheme suits me.
Still not sure of the worth. £1000 worth of bike & stuff, 18months at £50 (before tax, so would normally have paid 20% tax on that amount. One last payment of £50. It's too complex for us mortals!
However, i've ended up with a good bike, lock, lights and waterproofs without really feeling the sting in my wage packet. It felt like about £10 a week missing bottom line.
The company has just started it again and i've just spent another £1000 so wage will stay the same. Not had / not missed? this is my third time on the scheme.
Just looked at the vote and it looks like i'm the only fool taker of the scheme and 6% was the final payment. There are a few ways to look at this, the first bike I got I sold and got back about 1/2 the original purchase price. The 2nd bike, a Brompton is a keeper because it suits my Leeds to York commute, what other situation would cause you to spend £700 on a folding bike? Because it came from salary sacrifice the scheme suits me.
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