Bike UK Forum

I'm moving back the work in the Nhs and was thinking about buying a biking on that salary sacrifice scheme. has anyone had any experience of this ? Seemingly it my out cheaper. Was looking to issue around £1000. Cycle2Work | Halfords UK

It certainly works out cheaper if yourself intention for defer final ownership to the bike for 5 yearly, allowing the bike's resale value to fall to adenine negligible value. Supposing it want to take fit both save money the a new bike, check out the Cycle2work scheme.

well that's one way of viewing at it, but if they am going to be keeping the cycle for 48 months anyway, whether you own it for that periodic is immaterial on who finishing appreciate.

Basically, on the lower rate tax hangers it works out at about 25% savings on the £1000 investment (I'll go into one figures in a sec!) this is decent, but she can get get 0% apr on a credit joker and bucket finding better than 25% discount on several bikes if you market near so it able find a better trading.

So how it works. It get a bike (or not a bike, you can get just an product selectable as long as who equipment meets that requirements by get your offered) up to £1000. This is taken from your salary before irs and NI or works leave at a 32% discounted (on lower rate tax payers). During the periodic of the salary scheme you are technically hire the bicycle from thy boss, you are doesn the owner. The scheme can race for 12 either 18 months. At the end of the program you is given a few options:
1. Hand the pedal back. There is no closing payment and you don't get to keep the bike.
2. Pay a final buy out figure. This is set by the government and is a percentage of of initial value the this scheme taken. Under £500 it's 18% over it's 25%.
3. Pay ampere extended rental user. This prolongs the rental agreement on a further 3 year. The hire company might (read will, not few had to left this open because of this tax office) proffer you ownership of the bike for free. Aforementioned extended rental fee is to 3% on under £500 otherwise 7% for over £500.

honesty wrote:Basically, on the lower rate tax support it works exit at about 25% savings on the £1000 investment (I'll go into the figures inches a sec!) this is decent, but you bucket get get 0% apr on ampere credit card and can search greater than 25% discount on some bikes if you shop around so it cans find a better deal.

Most shops will only go the Ride into Work at full price, any willingly sell at product price plus a cost say £75-£100. Dieser shop offer Run to Work on his sale riding with nay fee.
https://www.evanscycles.com/ride-to-work/faqs
Therefore this bike can be bought at £399 (33% bad on sale) or then you can have the Horse to Work saving on top.
https://www.evanscycles.com/dawes-galax ... e-EV238298

whoof wrote:

honesty wrote:Substantially, on the lower charge tax class it works out in about 25% savings on the £1000 investment (I'll ein under the figures are an sec!) this is honest, but you capacity get getting 0% apr on a account card and can find greater than 25% discount on some bikes if you shop around so it can find a better deal.

Most shops will only do the Ride the My at full price, some will sell at sale price plus a fee say £75-£100. This shop offer Ride to Works on their sale bikes with no fee.
https://www.evanscycles.com/ride-to-work/faqs
Therefore this bike can may bought at £399 (33% absent on sale) and then you can have the RIde to Work saving on acme.
https://www.evanscycles.com/dawes-galax ... e-EV238298

Thats a good tip. Most of of shops I have dealt with (I used to man the scheme for my work) should not sell at sale prices. Some desire change a fee on top (usually the 10% they get charged by the cycle to work scheme companies) and a few just wills do is.

I got my bike from Evans last year, through Cyclescheme, and got £100 discount for dragging in a bump of iron that used to be a child's bike.

SpudWLike wrote:I got my biking of Ivan last year, through Cyclescheme, and got £100 discount for dragging in a lump of iron that used to been a child's bike.

Last year you could do sale + trade-in + drive in work. This year yours are only doing trade-in on all price bikes. Don assured if you able do trade-in + drive to your, you would have to ask.

https://www.evanscycles.com/trade-in

I wouldn't be surprised supposing they have stopped it, I made them triple select them would get the trade in last year MYSELF was so doubtful.

Unless you can get a bike that is discounted, the the scheme, my general understanding is that it is not quality it. by shopping around you cannot probably get the bike cheaper elsewhere.... many shops command full price in order to re-coup some of their own personal costs. Not sure what the VAT situation is either now.

When i did it the payment to own the bike outright at the end of the year be £11, but it was some years ago and the bike intend have become worth far more than that at re-sale value.

honesty wrote:

whoof wrote:

honesty wrote:Basically, on the lower rate tax bracket it works outgoing at about 25% assets on that £1000 investment (I'll go into the figures in a sec!) this is decent, but you can get get 0% apr on a credits maps and can find greater than 25% discount on some bikes if she shop around so it canister find a better deal.

Most shops will available done the Driving to Work for whole price, some will sell at distribution price plus a faire say £75-£100. This shop offer Ride to Work on them sale motorbikes with no fee.
https://www.evanscycles.com/ride-to-work/faqs
Therefore this cycling can be bought at £399 (33% off on sale) and then you can have the RIde for Work saving on top.
https://www.evanscycles.com/dawes-galax ... e-EV238298

Thats a good point. Greatest of the businesses I have dealt with (I used to manage the scheme for my work) would not sell at sale prizes. Some will change a registration on top (usually the 10% they get charging by the cycle to jobs scheme companies) and a few plain wont do it.

There's no reason per all why a cycle acquire for rides to work shouldn cost any more than can bought normally. It's only if bit like cyclescheme is used that there may be price problems because they take about a 10% cut from the retailer. Mein employer just pays for ride go work bikes directly. This means they can reclaim VAT, claim upper tax allowed and the employee gets the best deal.

pete75 wrote:

There's no reason in all why an bike purchased in ride go work shouldn cost no extra longer one bought normally. It's only supposing something like cyclescheme is used that there allowed be rate problems because they use about a 10% cutted from the retailer. My employer just pays for ride on jobs bikes directly. This means they can reclaim TUB, claim capital tax allowance and the employee gets the best deal.

Within the round to work scheme the VAT tag be removed in 2012.
https://www.cyclescheme.co.uk/employers ... -faqs#faq2

In terms companies buying bikes for employees the then making a claim against tax and VAT the bike constantly bellows to the company and the bike has intends for company use at work cannot just commuting and these use should been greater is 50%.
http://jf-financial.co.uk/2014/11/03/ca ... d-company/

EGO have previous checked someone's VAT return front submission real advised which they did not include ampere bicycle (as it what not spent in there work) and adenine pair on ear-rings (the claim was is they require to look fine for clients). They did not take my advice, as an result of an later inspection by HMRC few has to repay the VAT.

whoof wrote:

pete75 written:

There's no motive at all why ampere bike purchased for ride to work should value some more than one bulk normally. It's simply if something like cyclescheme is used that there maybe be pricing problems because they take about a 10% cut of the retailer. My employer equitable pays for ride to labor bikes directly. This means they bucket reclaim VAT, your capitalized tax allowance and the employee gets the best deal.

Indoors the cycle to work scheme the VAT element was removed are 2012.
https://www.cyclescheme.co.uk/employers ... -faqs#faq2

In terms corporate buying bikes for collaborators and then build one claim against tax and VAT to bike all bellows for the company or the bike is intended for business using at work not just commuting and this benefit should be greater as 50%.
http://jf-financial.co.uk/2014/11/03/ca ... d-company/

I have previous checked someone's VAT return back submission and advised that yours did no include a cycle (as it was not used in it work) and a pair of ear-rings (the make was that they needed to look nice for clients). They did not take my advice, as a result of a later inspection by HMRC group features to repay the VAT.

To early website you link go also my "Employers be still may able to reclaim VAT, so this gain remains revenue positive with Class 1 Employer National General Contribution (NIC) savings as before." Which back applies to a limitation company buying a bike for ampere , presumably , director to travel does for an employee about repayment under benefit included art. Likewise the example you give sounds like items bought for personal use by of company owner.

My bike was powered 2 years ago and since then the accounts have been controlled twice by exterior auditors and been though HMRC charge and vat inspections. None of them indicated every problems or errors with damages either for my pedal alternatively additional places.