Unfortunately, this deal is no longer valid
Up to 42% off ANY new bike under the NEW Government Cycle to Work Scheme rules
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Up to 42% off ANY new bike under the NEW Government Cycle to Work Scheme rules

290
Posted 15th Jun
As of this week, the government released that they will now SCRAP the £1,000 maximum limit for Cycle to work schemes. This means that you can now purchase any new bike via the Cycle to work scheme for anything up to 42% off the RRP! (All by salary sacrifice). Some employers may take a few months to adopt to these rules (trust me I’ve already pestered mine since this was released!) - but some may have adopted the limits automatically.

A great opportunity to save a lot of cash of the purchase of a new bike!

I’ll be going green and buying a decent ebike as soon as my employer relaxes the rules!

More details can be found below:

road.cc/content/news/262132-you-will-now-be-able-get-bikes-worth-over-ps1000-cycle-work-scheme

I appreciate this isn’t a deal - but it’s now a very compelling offer that the government have released - and it hasn’t had a lot of press!

All you’ll need to do is speak to your employer to find out when your company adopts the new rules.
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Then some crackhead comes and steal it then sell it for a nickel
sm969015/06/2019 09:05

I beg to differ. I had a £600 bike and was paying £50 a month for it and t …I beg to differ. I had a £600 bike and was paying £50 a month for it and then had to pay £120 transfer of ownership fee after the 12 months. Not worth it IMO


I think something went wrong there
sm969015/06/2019 09:05

I beg to differ. I had a £600 bike and was paying £50 a month for it and t …I beg to differ. I had a £600 bike and was paying £50 a month for it and then had to pay £120 transfer of ownership fee after the 12 months. Not worth it IMO


Why did you sign up to a deal with no discount in the first place?!
davewave15/06/2019 09:00

this scheme is fantastic, saves a fortune.


I beg to differ. I had a £600 bike and was paying £50 (edit: £36pm after tax) a month for it and then had to pay £150 transfer of ownership fee after the 12 months. Not worth it IMO
Edited by: "sm9690" 15th Jun
290 Comments
this scheme is fantastic, saves a fortune.
davewave15/06/2019 09:00

this scheme is fantastic, saves a fortune.


I beg to differ. I had a £600 bike and was paying £50 (edit: £36pm after tax) a month for it and then had to pay £150 transfer of ownership fee after the 12 months. Not worth it IMO
Edited by: "sm9690" 15th Jun
Then some crackhead comes and steal it then sell it for a nickel
Ghostrecon15/06/2019 09:05

Then some crackhead comes and steal it then sell it for a nickel


True story
sm969015/06/2019 09:05

I beg to differ. I had a £600 bike and was paying £50 a month for it and t …I beg to differ. I had a £600 bike and was paying £50 a month for it and then had to pay £120 transfer of ownership fee after the 12 months. Not worth it IMO


Why did you sign up to a deal with no discount in the first place?!
sm969015/06/2019 09:05

I beg to differ. I had a £600 bike and was paying £50 a month for it and t …I beg to differ. I had a £600 bike and was paying £50 a month for it and then had to pay £120 transfer of ownership fee after the 12 months. Not worth it IMO


I think something went wrong there
so is the saving dependant on how much you earn? That is you save by it being taken out of your wage before its taxed? So those on a higher income get a bigger saving?
sm969015/06/2019 09:05

I beg to differ. I had a £600 bike and was paying £50 a month for it and t …I beg to differ. I had a £600 bike and was paying £50 a month for it and then had to pay £120 transfer of ownership fee after the 12 months. Not worth it IMO


BTW no-one would have known if you'd sold it so why did you bother telling them? This plan is very simple and straightforward, discounted bike and you pay over a longer period, interest free.
Edited by: "davewave" 15th Jun
nic015/06/2019 09:07

so is the saving dependant on how much you earn? That is you save by it …so is the saving dependant on how much you earn? That is you save by it being taken out of your wage before its taxed? So those on a higher income get a bigger saving?


Yep. But those on a bigger wage pay more tax...
sm969015/06/2019 09:05

I beg to differ. I had a £600 bike and was paying £50 a month for it and t …I beg to differ. I had a £600 bike and was paying £50 a month for it and then had to pay £120 transfer of ownership fee after the 12 months. Not worth it IMO


Don't you mean you paid 50 gross not net. The transfer of ownership is down to your employer, ours waives it.

Scehem is superb use it every time I can
davewave15/06/2019 09:08

BTW no-one would have known if you'd sold it so why did you bother telling …BTW no-one would have known if you'd sold it so why did you bother telling them? This plan is very simple and straightforward, discounted bike and you pay over a longer period, interest free.


The transfer of ownership he's talking about is from your employer to you. Your company effectively own the bike while you're on the scheme.
horstachio15/06/2019 09:11

Don't you mean you paid 50 gross not net. The transfer of ownership is …Don't you mean you paid 50 gross not net. The transfer of ownership is down to your employer, ours waives it.Scehem is superb use it every time I can


Yeah that's what I meant. It would have been decent if it wasn't for the transfer of ownership fee.
No815/06/2019 09:08

Yep. But those on a bigger wage pay more tax...


And the £1000 limit scrapping means more orders for the Audi electric bike then

37864674-21Z6q.jpg
sm969015/06/2019 09:12

Yeah that's what I meant. It would have been decent if it wasn't for the …Yeah that's what I meant. It would have been decent if it wasn't for the transfer of ownership fee.


Shame they make you pay a large amount. Every company I’ve worked for waived it (large corporates don’t know if that helped)
sm969015/06/2019 09:12

Yeah that's what I meant. It would have been decent if it wasn't for the …Yeah that's what I meant. It would have been decent if it wasn't for the transfer of ownership fee.


My previous company charged the flat 25% but this is what my new company says (have omitted company details but it's a multi billion £ company)....



Although you will have benefitted from the use of the bike for the hire term (12 months), XXXXXXX owns the bike for the duration.


The company aims to ensure that you make the greatest saving possible through the scheme. Therefore, you will be provided with different options at end of the hire term. Halfords cycle2work will send communication informing you of your options, at which point you may be offered the option to purchase the bike at HMRC's Valuation. If you would like to discuss this in more detail give the cycle2work team a call on 03455 046444.
The tricksto getting maximum reduction is to get your employer to extend the lease beyond the 1 year to 5. It was the enforcement of payment of fair market value at the end of year 1 that knackered the original scheme. Ill be lobbying my HR to get this scheme up and running again as im due a new set of wheels!
Will this cover e bikes? What if you leave work in 6 months because there is no automatic entitlement and this is where it falls down for me!
Edited by: "Mrepg" 15th Jun
Whilst it might be a good idea for those budding Bradley Wiggins out there paying over a grand for a push bike isn't really what the average person wants to pay for a push bike anyway.
horstachio15/06/2019 09:14

Shame they make you pay a large amount. Every company I’ve worked for w …Shame they make you pay a large amount. Every company I’ve worked for waived it (large corporates don’t know if that helped)


Is a tax requirement that they charge you for it. Its a lease in effect and you have to pay at end to transfer and comply with tax law
sm969015/06/2019 09:05

I beg to differ. I had a £600 bike and was paying £50 a month for it and t …I beg to differ. I had a £600 bike and was paying £50 a month for it and then had to pay £120 transfer of ownership fee after the 12 months. Not worth it IMO


Were you actually paying £50 of your take home salary? Or was that from your gross salary? I did £800 and my actual take home pay deduction is only £24 Month.
majorwedgy8415/06/2019 09:22

Is a tax requirement that they charge you for it. Its a lease in effect …Is a tax requirement that they charge you for it. Its a lease in effect and you have to pay at end to transfer and comply with tax law


Ours is 3 years lease plus they pay it on our behalf
Ghostrecon15/06/2019 09:05

Then some crackhead comes and steal it then sell it for a nickel


Yeah sorry about that
sm969015/06/2019 09:12

Yeah that's what I meant. It would have been decent if it wasn't for the …Yeah that's what I meant. It would have been decent if it wasn't for the transfer of ownership fee.


How is that decent? £50 x 12 months = £600, and you said it was a £600 bike - so zero discount..?
Cycling_chum15/06/2019 09:22

Were you actually paying £50 of your take home salary? Or was that from …Were you actually paying £50 of your take home salary? Or was that from your gross salary? I did £800 and my actual take home pay deduction is only £24 Month.


Sorry yeah that was before tax. Think it worked out about £36pm but then had £150 transfer fee so I saved a whole £18
nic015/06/2019 09:12

And the £1000 limit scrapping means more orders for the Audi electric bike …And the £1000 limit scrapping means more orders for the Audi electric bike then [Image]


Wow, if only I had a spare $20,000...
This will be very welcomed by those wishing to get a decent ebike, that normally start at between £1500-2000. Although Halfords have previously and have still some ebikes for sub £1k, the spec is normally low and hub drive (no bad thing in some cases)
This scheme is a nightmare to navigate! Avoid at all costs and get interest free credit from Halfords!
adamhendstock15/06/2019 09:28

This scheme is a nightmare to navigate! Avoid at all costs and get …This scheme is a nightmare to navigate! Avoid at all costs and get interest free credit from Halfords!


But that doesn't save anything on the list price...
sm969015/06/2019 09:05

I beg to differ. I had a £600 bike and was paying £50 a month for it and t …I beg to differ. I had a £600 bike and was paying £50 a month for it and then had to pay £120 transfer of ownership fee after the 12 months. Not worth it IMO


You are genuinely the only person I've ever heard of who had to pay anything at the end of a cycle to work scheme. Weird
Used the scheme on a couple of occasions and found it to be very good. Just need to keep the bike (not take out a new scheme) for long enough to ensure that you don't have to make a final payment
Think I could get away with getting the electric scooter on this I would actually use it to get to work
"I’ll be going green and buying a decent ebike as soon as my employer relaxes the rules!
"
How can this be green? You are still using electric.
Our company refuses point blank to sign up to this scheme as they say the admin is more hassle than it's worth.
I suppose I will have to stick with my trusty Level Betty I picked up for £20 many years ago... A stripped bare rat look that cost over £1500 new.
I bought a Boardman bike in March under the scheme from Halfords. At the time Halfords were given 20% off if you traded in any old bike, scooter or helmet. I traded in my kids old £10 scooter so that took it down to £530. I then applied for £630 on the scheme, bought the bike and £100 of safety gear and a lock.I also was given another £30 or so. Along with that you will get a voucher which gives you 20% off all bike accessories for the year which although it states it can't be used on Sat Nav's for the bike they let me purchase one. After my monthly payments were taken out and then the tax was taken into consideration I will pay around £440. So for me that's £750 worth of goods for around £440. I'm also on the lower tax band but if you are on the high band it works out even cheaper. Just to say that Halfords or employer don't generally ask for the option to buy after the year as 4 of my work mates have never been asked to pay it. Also the branch at Halfords included the gold cycle service cover for free.
Edited by: "beanooo" 15th Jun
When I used the scheme at a large bank employer, the bike was yours but only after 3 years - they applied depreciation to it. If you wanted to "own" it before then you had to pay a fee. Probably changed again.

Now. at my smaller employer, getting our *wonderful* and *efficient* HR people to fill in one form to do this (and the payroll changes) has proven impossible over three years since they agreed in principal.
Edited by: "PeterGalbavy" 15th Jun
PeterGalbavy15/06/2019 09:52

When I used the scheme at a large bank employer, the bike was yours but …When I used the scheme at a large bank employer, the bike was yours but only after 3 years - they applied depreciation to it. If you wanted to "own" it before then you had to pay a fee. Probably changed again.Now. at my smaller employer, getting our *wonderful* and *efficient* HR people to fill in one form to do this (and the payroll changes) has proven impossible over three years since they agreed in principal.



It seems like it really depends on employer. I work for BT and everything is explained to me very well before I went for it. I delayed going for it for a year but had to snap it up as I got the 20% off for the trade in.
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deleted1648054
Great spot. We need to actively persuade employers to offer the scheme to employees. Unfortunately, most companies can’t be bothered with the admin.
If you earn between approx £12k-£43k you will potentially save 32% (20% tax + 12%NI).
Over £43k it’s 42% (40% tax + 2%NI)

Based on earnings and location, this will vary.

As for end of scheme, HMRC rules do state that you should pay something to keep the bike.
You will also find some companies will only charge you the non-VAT cost of the vouchers.

Basically savings vary on how employers implement the scheme and enforce portions of it.
Even if in the worst case you break even. It’s a 0% bike loan with no credit check.

Also keep in mind, salary sacrifice can impact things like average earnings for certain benefits, such as maternity pay etc. However if anyone goes on maternity, you’re work will pay it for you.
hclawlor15/06/2019 09:33

Used the scheme on a couple of occasions and found it to be very good. …Used the scheme on a couple of occasions and found it to be very good. Just need to keep the bike (not take out a new scheme) for long enough to ensure that you don't have to make a final payment


I need to find this out as I have one from 2015.
shame my work don’t do this
Oneday7715/06/2019 10:05

If you earn between approx £12k-£43k you will potentially save 32% (20% t …If you earn between approx £12k-£43k you will potentially save 32% (20% tax + 12%NI). Over £43k it’s 42% (40% tax + 2%NI) Based on earnings and location, this will vary. As for end of scheme, HMRC rules do state that you should pay something to keep the bike. You will also find some companies will only charge you the non-VAT cost of the vouchers. Basically savings vary on how employers implement the scheme and enforce portions of it. Even if in the worst case you break even. It’s a 0% bike loan with no credit check. Also keep in mind, salary sacrifice can impact things like average earnings for certain benefits, such as maternity pay etc. However if anyone goes on maternity, you’re work will pay it for you.


Isn’t the 40% tax band now triggered at 50k? Or does this follow a different calculation.
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