Tell me about Cycle to work schemes - Advice Please

[Another One]

Hi All, my employer is considering bringing in a cycle to work scheme and I have put my hand up to give it a try as hopefully I will get a bike cheaper than normal retail price. I do have a few questions i.e. are you able to buy a bike that has been discounted and if so would you have to pay the RRP, also can anyone advise if there is any difference in schemes i.e. is one better than the other (May still have time to influence). Finally, any advice would be most appreciated and as always thank you all.

 

[Doomanic]

Green Commute Initiative is supposedly the best for both the retailer and the end user.

are you able to buy a bike that has been discounted and if so would you have to pay the RRP

This depends on the shop and the scheme.
The schemes charge a commission of up to 11% so to expect the shop to swallow that is unreasonable IMO, especially given the saving you will be making. However, it may be affected by the source of the discount; ie if the retailer is clearing out old/dead stock (absorbing the loss) or if it's a brand-led reduction like Spesh's recent price cuts on SLs (giving credit to retailers for existing stock).

Has your employer hinted at available budget? Although the rules have been relaxed it is at their discretion with some still limiting you to £1000. My employer has set the limit at £3000, so enough to buy a clockwork bike but not a decent eeb.

 

[JonnyManc]

My company uses Cyclescheme.
They are pretty good, though we have a top budget of £3000 payable back over 12 months.
While not great, it's still a saving of around £1000 if used

The rules say that this can't be used as part payment, but many bike shops (on and offline) will allow you to use it.

I've bought my last two using it.... And if a sale bike, I've had to pay an additional 10% of the voucher value as that what it costs the shops....

Hope this helps....

 

[Doomanic]

Something else to consider; a salary sacrifice scheme like this cannot take your pay to even 1p below NMW, which effectively closes the scheme off to many people who need transport and would actually ride their bike to work.

 

[Another One]

Green Commute Initiative is supposedly the best for both the retailer and the end user.


This depends on the shop and the scheme.
The schemes charge a commission of up to 11% so to expect the shop to swallow that is unreasonable IMO, especially given the saving you will be making. However, it may be affected by the source of the discount; ie if the retailer is clearing out old/dead stock (absorbing the loss) or if it's a brand-led reduction like Spesh's recent price cuts on SLs (giving credit to retailers for existing stock).

Has your employer hinted at available budget? Although the rules have been relaxed it is at their discretion with some still limiting you to £1000. My employer has set the limit at £3000, so enough to buy a clockwork bike but not a decent eeb.

Thanks mate point taken those of us that are interested have hinted about £8k but still to hear final decision so should hopefully cover a few Ebikes.

 

[Another One]

My company uses Cyclescheme.
They are pretty good, though we have a top budget of £3000 payable back over 12 months.
While not great, it's still a saving of around £1000 if used

The rules say that this can't be used as part payment, but many bike shops (on and offline) will allow you to use it.

I've bought my last two using it.... And if a sale bike, I've had to pay an additional 10% of the voucher value as that what it costs the shops....

Hope this helps....

I forgot to ask this does the scheme have to be over 12 months?

 

[Doomanic]

Depends on the scheme and your employer,

Something else to consider; if you leave before the scheme ends you have pay it off in full with no discount.

 

[STATO]

GCI website answers most questions.

The cycle to work scheme with no £1000 limit

Cycle to work scheme with no £1000 limit, no exit fees. Save upto 47% on e-bikes and conventional bikes. Low commissions for bike shops.

www.greencommuteinitiative.uk

Bear in mind your company has to pay upfront for the bike even if it is recouped over the year, so many will put a limit (imagine the cost to the company if a lot of people took it up at once!). My company put £2.5k for the GCI scheme, annoying as it limits what you can get.

 

[Dax]

I forgot to ask this does the scheme have to be over 12 months?

Normally you pay for the bike over 12 months, then take ownership after 3 years. There is typically a fee to transfer ownership to you.

It’s worth looking at the cost savings carefully. For a lower tax bracket employee, it may be cheaper to buy a discounted bike on 0% credit than buying a bike on the cycle scheme. For a higher rate tax payer, it’s likely to be a decent tax saving (which is stupid, because someone in the 45% tax bracket can probably afford to just buy a bike).

In theory you cannot top up the scheme with cash, as that complicates ownership of the bike (legally you are renting it for a year or three). In reality some bike shops are fine with you paying extra on top of the voucher.

 

[Another One]

GCI website answers most questions.

The cycle to work scheme with no £1000 limit

Cycle to work scheme with no £1000 limit, no exit fees. Save upto 47% on e-bikes and conventional bikes. Low commissions for bike shops.

www.greencommuteinitiative.uk

Bear in mind your company has to pay upfront for the bike even if it is recouped over the year, so many will put a limit (imagine the cost to the company if a lot of people took it up at once!). My company put £2.5k for the GCI scheme, annoying as it limits what you can get.

Thanks but don't employers also make a saving on national insurance contributions.

 

[Another One]

Normally you pay for the bike over 12 months, then take ownership after 3 years. There is typically a fee to transfer ownership to you.

It’s worth looking at the cost savings carefully. For a lower tax bracket employee, it may be cheaper to buy a discounted bike on 0% credit than buying a bike on the cycle scheme. For a higher rate tax payer, it’s likely to be a decent tax saving (which is stupid, because someone in the 45% tax bracket can probably afford to just buy a bike).

In theory you cannot top up the scheme with cash, as that complicates ownership of the bike (legally you are renting it for a year or three). In reality some bike shops are fine with you paying extra on top of the voucher.

Thanks any ideas on what shops don't mind topping up.

 

[Dax]

Suggest you talk to the manager or your LBS in person once you’ve made it clear you’re thinking of buying a bike there and see how the conversation goes.

 

[Another One]

Suggest you talk to the manager or your LBS in person once you’ve made it clear you’re thinking of buying a bike there and see how the conversation goes.

Done already speaking with HR direct now so hoping to have an update soon.

 

[7869hodgy]

I just bought this from Tredz via a Halfords C2W scheme.

£1899 translates to c. £1100 and paid over 12 months is circa. £90 a month.

If you are a higher tax payer you pay from your salary pre-taxation so you are you saving c. 47%.

It’s a great scheme in my opinion though some companies only offer £1 which doesn’t get you much these days. I was lucky we get £2k.

At the end of the term you can extend the “rental” for a one off fee which is £80 or so. After that at pretty much yours.

 

[Funkeydunk]

C2W ie. The Halfords scheme charges the LBS quite bit I believe is used to be 10%. I thing Green commute is the best one.

 

[JonnyManc]

C2W ie. The Halfords scheme charges the LBS quite bit I believe is used to be 10%. I thing Green commute is the best one.

Cyclescheme is also around 10%.....

 

[Sinkrate]

Shop around, some will wave the 10% charge even on sale bike. Just shows how much they make on them really at full price !