The Cycle to Work scheme after more than 20 years! (apparently save up to 42%)
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The Cycle to Work scheme after more than 20 years! (apparently save up to 42%)

176
Found 1st AprEdited by:"jasee"
The Cycle to Work scheme is still available. This has been mentioned before in UKhotdeals but I think with spring hopefully coming soon and lots of posts for bikes it may be useful for some people. But bear in mind, you will need protective clothes for wet weather and roads where you live and want to cycle on may be dangerous even if there is a cycle path. There are pot holes and drains. Also, if you are cycling in dark conditions, you will need working lights and ideally, a safe place to keep the bike at either end.The accessories can be included in the cost of the bike of course.
OTOH it is a good way to keep fit and maybe loose a little weight and avoid being 'trapped' in commuter buses and trains! And save money. And not pollute the environment!

The Cycle to Work scheme is not free! Basically, your employer pays up to £1000 for the bike and accessories. The cost is deducted from your wages over a period (based on your gross wage before tax and NI are paid, so you pay tax and NI on the lower wage which saves you money). The employer owns the bike. After the period is over, you can continue to use the bike or you can buy it based on a percentage of what the bike is worth now. I think some employers give the bikes to their employees.
The employer has to be a member of the scheme
gov.uk/gov…nce
This is a useful article
cyclingweekly.com/new…055

Also theoretically the employee is responsible for insuring his/her bike so you may still have to pay if your bike is stolen. So it is worth checking if you have contents insurance whether the costs of a bike are covered. They usually are, but it may only cover a proportion or a reduced amount of the cost.
British Cycling Membership covers liability cover and will give you a 10% discount at Halfords which other suppliers may match. It also gives you reduced price full bike insurance BS membership is from £23 per year.
britishcycling.org.uk/mem…hip

If you are self employed, it is possible to use the scheme.

Also works for electric bikes!
See the Green Commute Initiative
greencommuteinitiative.uk/emp…es/

Bike repairs can be done here. More cheaply or free free. Seach for 'Dr Bike'
Or look here (seems to be mainly London related)
cycleconfident.com/cou…ke/
(Cycle Confident )
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Cyclescheme Deals

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Top comments
You need a full jousting armour to cycle safely on our roads. No point government pushing these schemes if they can't make safe cycle lanes and protect cyclists.
powerbrick5 m ago

cycle lanes that they conveniently ignore all the time, illegally mount …cycle lanes that they conveniently ignore all the time, illegally mount public pavements to circumvent traffic congestion and red lights, OK....


Same as any other road users, there’s always a minority who don’t stick to the rules..,motorists who break the speed limits, mount pavements to park, jump red lights...what’s your point?
Dragon323 m ago

Hot even though it's abused sometimes as have heard some people using it …Hot even though it's abused sometimes as have heard some people using it for just wheels costing thousands for their bikes and even somebody buying their children bikes on it.


That's not abuse of the scheme. You are allowed to buy components/accessories as part of the scheme. In any case, the whole point of the scheme is to get people healthy, who cares if it's older or younger people.
powerbrick6 m ago

Punishment is enforced for the reasons you gave. They should have to …Punishment is enforced for the reasons you gave. They should have to adhere to the same rules as motorists (mandatory insurance, licence, licence plates, road worthiness certificate).


Well I drive for a living and I cycle, i keep to rules for both, I see idiots from both sides. My point was you can’t tar one road user and not the other. I’m going to leave it here, as this is only going one way, you have your opinion I have mine
176 Comments
Hot even though it's abused sometimes as have heard some people using it for just wheels costing thousands for their bikes and even somebody buying their children bikes on it.
You need a full jousting armour to cycle safely on our roads. No point government pushing these schemes if they can't make safe cycle lanes and protect cyclists.
Dragon323 m ago

Hot even though it's abused sometimes as have heard some people using it …Hot even though it's abused sometimes as have heard some people using it for just wheels costing thousands for their bikes and even somebody buying their children bikes on it.


That's not abuse of the scheme. You are allowed to buy components/accessories as part of the scheme. In any case, the whole point of the scheme is to get people healthy, who cares if it's older or younger people.
Dragon327 m ago

Hot even though it's abused sometimes as have heard some people using it …Hot even though it's abused sometimes as have heard some people using it for just wheels costing thousands for their bikes and even somebody buying their children bikes on it.


It's not really. And in fairness we are behind other countries when it comes to having incentives such as tax free on exercise equipment like bikes etc.

Give more encouragement like tax relief on bikes and improve cycle networks and in the long run it will reduce the burden on nhs due to health problems and even stress issues.
Thanks for sharing @jasee , I've changed the get deal link to the Cyclescheme site
Bazza716 m ago

That's not abuse of the scheme. You are allowed to buy …That's not abuse of the scheme. You are allowed to buy components/accessories as part of the scheme. In any case, the whole point of the scheme is to get people healthy, who cares if it's older or younger people.


As you have to use the bike to commute to work buying a kids bike isn't allowed unless you plan to use it yourself. If you stop commuting using your bike then you lose the taxable benefit
As an aside, cycling works wonderfully well in Tokyo. Maybe because Tokyo has a very high population density, so within that area, the majority? of people use bikes. There are bike racks outside/inside every block of flats. The buses are not crowded and arrive on time because there are not large numbers of cars in the road and because people use bikes or the extensive underground/overground trains. Most pavements are divided into two or three parts, one specifically for bikes. So bikes don't slow down the traffic on the roads. People expect to see bikes on the pavements! There is a rainy season in Tokyo, people use umbrellas on their bikes! This is amazing to see and has recently theoretically become illegal.
chungle781 m ago

As you have to use the bike to commute to work buying a kids bike isn't …As you have to use the bike to commute to work buying a kids bike isn't allowed unless you plan to use it yourself. If you stop commuting using your bike then you lose the taxable benefit


Nobody cares what you use the bike for. They don't check. My mate bought both his teenagers bikes on it. It doesn't matter. Keeps them fit and active and allowed them to ride to school.
wishihadadonkey5 m ago

Thanks for sharing @jasee , I've changed the get deal link to the …Thanks for sharing @jasee , I've changed the get deal link to the Cyclescheme site



Ok thanks
Dragon3218 m ago

Hot even though it's abused sometimes as have heard some people using it …Hot even though it's abused sometimes as have heard some people using it for just wheels costing thousands for their bikes and even somebody buying their children bikes on it.


Max is £1000.
Dragon3220 m ago

Hot even though it's abused sometimes as have heard some people using it …Hot even though it's abused sometimes as have heard some people using it for just wheels costing thousands for their bikes and even somebody buying their children bikes on it.


Children out and about cycling is a good thing, not bad. If someone needs to use this scheme, then so be it. A healthy generation is better than being anal about how the scheme is used
Cold.. I bought bike which cost 850 pounds using cyclescheme. After 1 year paying from my salary if I want to be owner I had to pay 200.. It's not good deal especially if you don't pay a lot of taxes..
Heat.Sink23 m ago

You need a full jousting armour to cycle safely on our roads. No point …You need a full jousting armour to cycle safely on our roads. No point government pushing these schemes if they can't make safe cycle lanes and protect cyclists.


cycle lanes that they conveniently ignore all the time, illegally mount public pavements to circumvent traffic congestion and red lights, OK....
powerbrick5 m ago

cycle lanes that they conveniently ignore all the time, illegally mount …cycle lanes that they conveniently ignore all the time, illegally mount public pavements to circumvent traffic congestion and red lights, OK....


Same as any other road users, there’s always a minority who don’t stick to the rules..,motorists who break the speed limits, mount pavements to park, jump red lights...what’s your point?
would love to take part in it but unfortunately such a big company like morrisons with 120,000 staff still can't sort it out
Dragon3235 m ago

Hot even though it's abused sometimes as have heard some people using it …Hot even though it's abused sometimes as have heard some people using it for just wheels costing thousands for their bikes and even somebody buying their children bikes on it.


Fair play to them is all I can say
windta1ker12 m ago

Same as any other road users, there’s always a minority who don’t stick to …Same as any other road users, there’s always a minority who don’t stick to the rules..,motorists who break the speed limits, mount pavements to park, jump red lights...what’s your point?


Punishment is enforced for the reasons you gave.

They should have to adhere to the same rules as motorists (mandatory insurance, licence, licence plates, road worthiness certificate).
Oh boy looks like this is going to turn into a drivers vs cyclists thread

33556056-fFcWR.jpg
quidditys_shore14 m ago

would love to take part in it but unfortunately such a big company like …would love to take part in it but unfortunately such a big company like morrisons with 120,000 staff still can't sort it out



That is ridiculous, there are ways they can sort it out at no cost to themselves (apparently) If that is the problem.
See for instance
greencommuteinitiative.uk/emp…rs/
powerbrick6 m ago

Punishment is enforced for the reasons you gave. They should have to …Punishment is enforced for the reasons you gave. They should have to adhere to the same rules as motorists (mandatory insurance, licence, licence plates, road worthiness certificate).


Well I drive for a living and I cycle, i keep to rules for both, I see idiots from both sides. My point was you can’t tar one road user and not the other. I’m going to leave it here, as this is only going one way, you have your opinion I have mine
You won't save much, unless you are a high rate tax payer.

Also most of these scheme providers charge an admin fee to the bike shops, maybe up to 10%. So the shops could pass that fee on to you. Even if the don't pass on the fee, they will be reluctant to give you any sort of discount etc.

Probably better just shopping around, to find last year's model of bike reduced. And you would actually own the bike in the first place, without waiting for several years.
powerbrick9 m ago

Punishment is enforced for the reasons you gave. They should have to …Punishment is enforced for the reasons you gave. They should have to adhere to the same rules as motorists (mandatory insurance, licence, licence plates, road worthiness certificate).


While it sounds like you have an agenda and all these combined would put people off cycling, which would mean more cars on the roads and more congestion, I do think some sort of registration for cyclists wouldn't be a completely bad thing. It would act as a deterrent to the irresponsible minority who cycle on busy pavements, if they thought they could be identified. It wouldn't stop it happening, just as laws against speeding don't stop drivers speeding, but it would send a message. I especially find it objectionable when the food delivery cyclists ride in this way - they at least should be clearly identifiable.
jasee26 m ago

That is ridiculous, there are ways they can sort it out at no cost to …That is ridiculous, there are ways they can sort it out at no cost to themselves (apparently) If that is the problem.See for instancehttps://greencommuteinitiative.uk/employers/


Tell me about it. They've dragged their heels for years regarding this, the most asked for benefit staff want, & it was all supposed to start last September but got pulled within an hour of going live.

7 months down the line they are still discussing with HMRC when or even IF they'll ever do it.
This deal should come with a sticky for this site fillthathole.org.uk
Government incentive/initiative that government employees (DWP) can’t actually get
Edited by: "defgimp" 1st Apr
vclaw38 m ago

You won't save much, unless you are a high rate tax payer.Also most of …You won't save much, unless you are a high rate tax payer.Also most of these scheme providers charge an admin fee to the bike shops, maybe up to 10%. So the shops could pass that fee on to you. Even if the don't pass on the fee, they will be reluctant to give you any sort of discount etc.Probably better just shopping around, to find last year's model of bike reduced. And you would actually own the bike in the first place, without waiting for several years.



The best thing to do is to buy a second hand bike at a boot fair for about £10, if you can service it, it should be ok for many years. Or get an alloy one for a bit more. They are less likely to be stolen. You should probably check that they haven't been stolen! But I think young people want a more fashionable bike.
I don't really understand how this works. I see that people are buying bikes at £850 but when we were offered it we were told the company would only allow us about £125??????? What ****in use is that?
Shengis5 m ago

I don't really understand how this works. I see that people are buying …I don't really understand how this works. I see that people are buying bikes at £850 but when we were offered it we were told the company would only allow us about £125??????? What ****in use is that?


When I did it it was up to £1000 - infact I know people that have spoken to LBS for bikes that are more and paid the difference
Edited by: "windta1ker" 1st Apr
chungle781 h, 41 m ago

As you have to use the bike to commute to work buying a kids bike isn't …As you have to use the bike to commute to work buying a kids bike isn't allowed unless you plan to use it yourself. If you stop commuting using your bike then you lose the taxable benefit


How would they know though??
windta1ker10 m ago

When I did it it was up to £1000 - infact I know people that have spoken …When I did it it was up to £1000 - infact I know people that have spoken to LBS for bikes that are more and paid the difference



Well on our info letter it was based on a percentage of our income. Looking at what was available for our allowance, might as well picked one up from the local tip lol.
Shengis9 m ago

Well on our info letter it was based on a percentage of our income. …Well on our info letter it was based on a percentage of our income. Looking at what was available for our allowance, might as well picked one up from the local tip lol.


Yea that seems daft, there’s always plenty of good deals on eBay, some are bought and ridden a couple of times, bargains to be had
I have just used this scheme to purchase an entry level bike (Carrera Sulcata). Hopefully if I stick to cycling to work, which I have done so far I will purchase a better spec bike out of my own pocket.
Shengis12 m ago

Well on our info letter it was based on a percentage of our income. …Well on our info letter it was based on a percentage of our income. Looking at what was available for our allowance, might as well picked one up from the local tip lol.



The scheme is a problem to people on low incomes because the monthly payment for the bike comes out of your pretax wages - if that takes your wages below the minimum wage then your employer is breaking the law.
Azael1 h, 52 m ago

Cold.. I bought bike which cost 850 pounds using cyclescheme. After 1 year …Cold.. I bought bike which cost 850 pounds using cyclescheme. After 1 year paying from my salary if I want to be owner I had to pay 200.. It's not good deal especially if you don't pay a lot of taxes..



Do NOT pay off the bike after 12 months - you need to pay 25% of the original price of the bike to own it. Wait until 4 years are up and pay 7% of the original price. In the meantime you continue to use the bike but make no further payments.
A basic rate taxpayer will save over £200 on an £850 bike over 4 years, you save about £60 over one year.
vclaw1 h, 26 m ago

You won't save much, unless you are a high rate tax payer.Also most of …You won't save much, unless you are a high rate tax payer.Also most of these scheme providers charge an admin fee to the bike shops, maybe up to 10%. So the shops could pass that fee on to you. Even if the don't pass on the fee, they will be reluctant to give you any sort of discount etc.Probably better just shopping around, to find last year's model of bike reduced. And you would actually own the bike in the first place, without waiting for several years.



Depends on the bike and the retailer.
Evans Cycles will let you use the scheme on any bike including sale prices, and pricematching.
Dales Cycles offered me a £50 discount on a £900 bike OR CycleScheme. CycleScheme with save me about £225 (but if I can get Evans to price match...).
ArthurDent18 m ago

Do NOT pay off the bike after 12 months - you need to pay 25% of the …Do NOT pay off the bike after 12 months - you need to pay 25% of the original price of the bike to own it. Wait until 4 years are up and pay 7% of the original price. In the meantime you continue to use the bike but make no further payments.A basic rate taxpayer will save over £200 on an £850 bike over 4 years, you save about £60 over one year.


How do you avoid paying for the bike after 12 months? I thought your employer automatically took payment at the end of your agreement
Shengis45 m ago

I don't really understand how this works. I see that people are buying …I don't really understand how this works. I see that people are buying bikes at £850 but when we were offered it we were told the company would only allow us about £125??????? What ****in use is that?



No, I can't understand this. Was it definitely 'the Cycle to Work scheme'?
There are, I think other schemes.
Maybe it was just a one off payment towards a bike?
lisa4rob0913 m ago

How do you avoid paying for the bike after 12 months? I thought your …How do you avoid paying for the bike after 12 months? I thought your employer automatically took payment at the end of your agreement



A Cycle to Work agreement can be for any period. It sounds as if you left before the end of the agreement?
vclaw1 h, 48 m ago

You won't save much, unless you are a high rate tax payer.Also most of …You won't save much, unless you are a high rate tax payer.Also most of these scheme providers charge an admin fee to the bike shops, maybe up to 10%. So the shops could pass that fee on to you. Even if the don't pass on the fee, they will be reluctant to give you any sort of discount etc.Probably better just shopping around, to find last year's model of bike reduced. And you would actually own the bike in the first place, without waiting for several years.



Azael2 h, 17 m ago

Cold.. I bought bike which cost 850 pounds using cyclescheme. After 1 year …Cold.. I bought bike which cost 850 pounds using cyclescheme. After 1 year paying from my salary if I want to be owner I had to pay 200.. It's not good deal especially if you don't pay a lot of taxes..


A worked example might be nice here. Let's say you buy a bike for £1000 putting all of that value on the C2W scheme. You choose to repay the company over 12 months. That's £83.33 per month of loan repayments from your pre-tax salary. At the end of the year the company sells the bike to you for 25% of its original value so you've got a payment of £250 to factor in here.

The key bit is whether the tax savings are worth more than the final purchase of the bike from the company since if you pay no tax it's more expensive to use C2W than it is to buy it yourself. So let's figure that out for some salaries.

A 15k/yr salary with C2W as above leaves a take-home pay of £12,900 and without C2W it's £13,580. That's a difference of £680, but factor in the final payment to own the bike and you're paying £930 for a £1000 bike. Not great but worthwhile. That's basically the saving you get for any salary until you start hitting the 40% tax bracket.

On an 80k/yr salary with C2W you have a take-home pay of £53,835 but without C2W it'd be £54,415. That's a £580 difference so with final payment you pay £830 for a £1000 bike. That's a pretty good saving.

In conclusion C2W is worth it at every taxed income level. It's even more worthwhile if your company finds a way to avoid you buying the bike from them at the end of your contract.
So you pay for the bike but you dont own it? These schemes are a con. They only benefit the ones who provides the scheme. You pay full price or more on bike and accessories. Anything you save in terms of not tax and national insurance is taken away by the rip off price in first place.
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