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Get a Tax Free Bike for Work through your Employer

bogeyman Avatar
8y, 9m agoFound 8 years, 9 months ago
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"Get a tax free bike!
Cyclescheme is working with a network of independent bike shops to supply the nation with quality tax free bikes and equipment for work. We have a wealth of experience organising no-hassle tax free bikes for employees. Hundreds of companies of all sizes have already benefited from our easy-to-follow system!
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bogeyman Avatar
8y, 9m agoFound 8 years, 9 months ago
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#1
Hmmmm... essentially renting the bike from your employer:

"Your employer has to be willing to run the scheme before you can get your bike. This is because the scheme can only run through what is known as a salary sacrifice, where you agree to temporarily reduce your wages to pay for the hire of goods – in this case a bike and equipment. The scheme is available to UK tax payers who pay PAYE. Please note that the self-employed cannot take part in the scheme"
#2
My employer did this scheme for a limited period last year - you got a shop discount (Evans Cycles) then you weren't charged VAT and you weren't charged income tax on the 12 months interest free payments - if you pay 40% tax that worked out at 55% discount and 12 months interest free credit - WOW.

You then have to pay a 'nominal fee' to retain the bike as it has to be a loan - we have been told this will be about £20.

Good deal if your employer will sign up.
#3
this has been about for years - tried getting our company to to do it but it was to much work for those layabouts in HR

oh and the bike is your company's till its paid off even though its taken out of your personal salary
#4
I think the title is a bit misleading. Great scheme though, heat given.
#5
I work for Ford Motor Company, and we have tried to get our HR to take it on since it started but they won't, all kinds of lame excuses, but it's a great deal, but afraid most mingebag companies don't want the extra paper work, unless it gets em on page one of the local Metro, the Goverment should force them to do it, less cars on the road, the workforce get fit, which means less sick days.
instead of penalising people who have to drive to work, give the cyclist a reward for not!!!!
#6
My employees doing it just now and I currently have a £600 letter as they call it on order for my new bike. In return I'll pay just over £27 for 12 months [then a nominal fee of approx £20-£30 at the end of the term]. In my book, thats a bargain, especially if it gets us all up and out of our cars to get a bit fitter.

Voted heat.
#7
nfedwards
I work for Ford Motor Company, and we have tried to get our HR to take it on since it started but they won't, all kinds of lame excuses, but it's a great deal, but afraid most mingebag companies don't want the extra paper work, unless it gets em on page one of the local Metro, the Goverment should force them to do it, less cars on the road, the workforce get fit, which means less sick days.
instead of penalising people who have to drive to work, give the cyclist a reward for not!!!!


here, here, that man.:thumbsup:

Glad to see our HR arent the only bone ideal muppets about, I mean it might interfere with them drinking tea and spreading gossip :whistling:
#8
esclad
I think the title is a bit misleading. Great scheme though, heat given.


I have changed title a bit to make it clearer. I can see how it coould have been misinterpreted. Thanks for the heat. :thumbsup:
#9
there have been similiar schemes for computers

most companies are too damn lazy to run it for the majority and tend to just do it for the directors and family hanger ons not for those who really deserve the opportunity
#10
Yep - our lot have been "setting this up" for 2 years now!

I work for a major UK bank.
#11
On a similar vein you can get tax free childcare using salary sacrifice too - you just need you emplyer to sign up for it. It's worth 50 odd quid a month to you.
#12
There are lots of things you can salary sacrifice for, with a right minded employer. Things include:

- Mobile Phones
- Pension contributions (saving on National Insurance)
- Bus travel season tickets
- Car Parking season ticket (if located next to work place).
- Staff Canteen (coming soon subject to HMRC playing ball).
- Childcare Vouchers.
- Bicycle hire.
etc.

Rufus
#13
this is a fantastic scheme!!
#14
I used this scheme recently.. if you are a lower rate tax payer, you can get about 33% rebate. ie. receive £150 CTW vouchers and repay only £100 approx. + 3-4% of the RRP to buy the cycle after 12 months :)
#15
edi
I used this scheme recently.. if you are a lower rate tax payer, you can get about 33% rebate. ie. receive £150 CTW vouchers and repay only £100 approx. + 3-4% of the RRP to buy the cycle after 12 months :)


its better than an interest free loan if you plan to buy a bike anyway!!
#16
nfedwards
I work for Ford Motor Company, and we have tried to get our HR to take it on since it started but they won't, all kinds of lame excuses, but it's a great deal, but afraid most mingebag companies don't want the extra paper work, unless it gets em on page one of the local Metro, the Goverment should force them to do it, less cars on the road, the workforce get fit, which means less sick days.
instead of penalising people who have to drive to work, give the cyclist a reward for not!!!!


And you work for FORD :whistling:

surely less cars on the road mean less cars needed ;-) Talking yourself out of a job there m8:w00t:

Good scheme by the looks of it, I know the NHS will be running something similar soon too, so may have a go;-)
#17
I got my bike through the scheme, the bike cost £2000 but I only got up to £1000 discounted and paid the remaining £1000 balance on my personal Credit Card. You can get higher value if your company buys a consumer credit license but thats about £500+ and as I was the only one in the company getting a bike the cost out weighed the benefit I would save!
Its not difficult for HR at all, the employee gets a quote and submits it to their employer, the employer vets it and submits online to cycle scheme. Cycle scheme invoice the company and once paid send them a voucher for the employee. It also says how much to deduct from the persons pay each month before tax & thats it!! Mine was like £55 a month.
#18
nfedwards
I work for Ford Motor Company, and we have tried to get our HR to take it on since it started but they won't, all kinds of lame excuses, but it's a great deal, but afraid most mingebag companies don't want the extra paper work, unless it gets em on page one of the local Metro, the Goverment should force them to do it, less cars on the road, the workforce get fit, which means less sick days.
instead of penalising people who have to drive to work, give the cyclist a reward for not!!!!


The Government doesn't make money if we're not in our cars paying extortionate taxes!
#19
i work for sage, and i spend a lot of time assisting our custoemr to set this scheme up in their payroll system.

it is really straight forward and no employer has any real excuse for not doing it. and it is a very good deal
#20
I am using a bike bought via the evanscycles scheme, got about 33% off but am expecting my company to let me have it once i have paid it off - dont see why i should pay them extra, its not like they are gonna take away a year old bike off me for that!!
#21
Apparently, it's up to the company whether they want to charge the individual the VAT or not. In theory, since they don't pay the vat, they could give it back to you. However, the company I did this through decided that they would keep the VAT in order to cover admin costs.
#22
The inconvenience is in finding a bike shop that is part of the scheme and that has bikes that you want. In my location it is either Halford's junk bikes or a very high end mountain bike shop.
#23
I did this in The Netherlands where they have a similar scheme, although just about every company participates. I ended up buying a bike worth £600 for just under £300.
#24
My company now do this , it took two years of banging on about it. Its not that much work for HR to do , as most bike companys do most of the work. There is a small gain for your company, as it effectively reduces yours wages by your monthly payment, and hence their NI contribution. We use Halfords, which is not that great because they do not let you add to the (normal) £1000 limit with your own money, but more importantly, do not discount last years bikes like say Evans do. For example a friend got a 07 Gary Fisher from Evans for £900 reduced from £1500. Under the scheme she would have paid about £500 .... now that is a bargain.
#25
If you are self employed it only does not work if you are a sole trader - you can switch part of your business (or all) to limited company status to comply (which I did a few years ago if the rules are the same to get 2500ukp worth of bikes for about 50% of the price.
#26
Big companies struggle with this one, mine is a big French Insurance company that declinedthe request for the scheme to be implemented in the same week they sent through invites to see the Al Gore film ands were spouting on about sustainable development.

Great scheme if you get it though.
#27
Maybe this is obvious to everyone but me, but just to clarify:

IIRC scheme is provided by HMRC on the basis that the person is purchasing a bike to cycle to and from work on, not just purchasing a bike to go off roading / touring on at the weekend.

Think I would be pusing my luck trying for this scheme when I live 20 miles down the M6 from my work?!?!?

Given the above, does anyone know / have a link to the details about how often you would need to use it to get to / from work to qualify?

M
#28
not all big companies against it ............ my dad works for Mitusbishi & there warehouse and offices are doing the scheme....... its great idea for a decent bike for little outlay..... my dad got a £450 bike for £25 a month ....... my brother uses the bike more than my dad though :whistling:
#29
morpheus;1576059
Maybe this is obvious to everyone but me, but just to clarify:
IIRC scheme is provided by HMRC on the basis that the person is purchasing a bike to cycle to and from work on, not just purchasing a bike to go off roading / touring on at the weekend.
Think I would be pusing my luck trying for this scheme when I live 20 miles down the M6 from my work?!?!?

Given the above, does anyone know / have a link to the details about how often you would need to use it to get to / from work to qualify?

M

In reality no one checks so if you buy a bike and don't actually ride it to work nothing will happen. Admitedly this is against the spirit of the deal, but I can assure you that a lot of £1000 carbon time-trial bikes and mountain bikes that never see a road are bought on this scheme.
#30
Cheers jbp,

Just read the site from the OP and the FAQ's are pretty good. It says there is no minimum number of times that the bike must be used to commute.

It does say that you can only use the bike for leisure for a maximum of 50% of the time, but since HMRC don't require you to keep records of when you use it for work, there's no problem really.

M
#31
Don.t forget its not just the bikes but the equipment you use for biking such as clothes, helmets, shoes,etc.

With spring approaching I thought this would be the best time for employers to get involved in this scheme to help their staff and to help themselves by having fitter staff.
Walk through Amsterdam or many European cities and bikes outnumber cars many times. Time we all got on our bikes in the UK.
#32
bogeyman
Don.t forget its not just the bikes but the equipment you use for biking such as clothes, helmets, shoes,etc.

With spring approaching I thought this would be the best time for employers to get involved in this scheme to help their staff and to help themselves by having fitter staff.
Walk through Amsterdam or many European cities and bikes outnumber cars many times. Time we all got on our bikes in the UK.


We need more cycle lanes first. There's no way I'd want to run the gauntlet of the roads I drive on to get to and from work. It's bad enough in a car! ;-)
#33
I work for the above company, and no don't blame me for the trains being late :oops:

They've started doing this deal as well, the letter can be a value upto £1000, for bike + kit (lights, helmet, clothing etc) Has to be purchased at Halfords, and used to commute to work at least 50% of time.
Tax efficent, £500 letter works out at £5 per week for 12 months.
suspended#34
can you only get 1 bike on this? was thinking of getting a spare as a 'backup'.
#35
You're most likely to get it in a big company if they've had to get planning permission for one of their sites. This sort of thing is thrown into travel plans to make them more believeable :)
#36
I have a (cheap) bike on this - it's costing me about £8 per month - and that is tax and NI free, so maybe £5-£6 in real terms.
Note that the higher your tax band the higher the discount.
You can't get more than one bike on this, as the scheme requires you to use the bike for at least 50% of your travel to work.
At the end of the year you will have to pay your employer a nominal fee to keep the bike.

Very hot, if your employer signs up.
#37
Noticed a reply from one of you saying you were limited to a choice of a junk Halfords bike or one from a really expensive shop.
Halfords will get you ANY BIKE YOU WANT whether they stock it or not under this scheme & have it delivered to your local store, just ask your employer to contact the people who do the scheme with your choice of bike.

Not all Halfords bikes are junk btw, the budget bikes are pretty bad (you get what you pay for!) but their Carerra brand is very good value for money.

I am very into cycling but passed up on the scheme this year as I really don't need another bike due to me already having pretty much my dream bike/s, someone I work with bought a KOXX trials bike frame with other high spec individual parts & built a fully custom bike. If for example you wanted a bike that's only imported & sold by one shop in the UK you can still get it sent to Halfords (e.g. a Focus imported by wiggle.com).
#38
great deal i work for a Jap carmaker in the north east and they introduced it last year.
£30a month then they discount my NI contributions works out around £22 for a £600 bike.
If you get a chance go for it.
http://www.cyclescheme.co.uk/:thumbsup:
suspended#39
does anyone have suggestions for bikes/makes etc? want something that can be used a bit on roads as well as off-road - aka mountain biking type terrain. makes and models would be appreciated.
#40
You need to be cautious about all salary sacrifice schemes if you are likely to change your job, get sacked, retire, take maternity or sick leave within 2 years of the end of you paying off your bike/computer/child care etc... as it means that your salary for calculation of benefits (e.g. pension, maternity leave, sick pay) is reduced by the amount taken out for the bike,etc... can end up being a pricey mistake.
If you have no intention of any of the above - then you'll be fine.

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