I think alot of people forget the additional 10% at the end when talking about their 'savings' For me it is at best a interest free year loan with a minimal discount.

It is really rubbish that the more you earn the better the scheme is for you.

Maybe it should be means tested??

our company did instigate a seperate scheme for min wage staff and under 18year olds so as not to exclude them

put in £100,000 as salary, comes out as 49.8%

Only if the employer can claim back the VAT and decides to pass the saving back to you.

Only if the employer can claim back the VAT and decides to pass the saving back to you.

yep they do (most employers pass on the VAT saving, though i don't earn 100k ;-(

most employers pass on the VAT saving

Not in my case 😥

i got a few bikes on cycle to work scheme, not all in my name it depends how close you are to your colleagues, and i got the vat back its a great scheme but very abused,

but very abused

yer and it is abuse that will get the scheme killed off – same way comps 4 homes was

I don't really give a **** about who is eligible and exactly what percentage is saved. If it's available, I'll take what I can and so should you.

I spent a grand on a bike last April and it costs me about £50/month. It comes out of my paypacket, so I don't even notice it.

I'll be getting another one in April, and one in 2011, and one every year until the scheme is closed. (Or the garage gets full – room for about another 15 bikes methinks.)

i dont want to abuse anything, the way i see it i pay tax on my company car and it is only used for work, i dont have a choice in terms of the car its an everyday use and they dont offer the job without one. im firld based but i do have to park in a residential car park about 10 minutes from the house so technically i could ride there. Yes it does seem people are usinhg it just to get another bike but at the minute i dont even own one.

I will use the bike outside of work to keep fit which will benefit my employee so its a win win situation.

It is really rubbish that the more you earn the better the scheme is for you.

Maybe it should be means tested??
Better to do what they're proposing for nursery vouchers (I'd guess it might also get carried over to C2W) and only allow higher rate taxpayers relief of the basic rate of tax, so it is at least the same for everybody.

I thought the HMRC were cracking down on the scheme with respect to the final value paid. I'm sure I'd heard stories of companies having problems after being audited

From HRMC
"However, at the end of the loan period, the employer may choose to give the employee the option to purchase the equipment. Typically this would be offered at substantially less than the original value of the equipment, but to prevent a taxable benefit in kind arising as a result of the transfer of ownership the employee must pay the employer the full market value of the equipment"

Don't see how anyone could argue that fair market value of a 1000 pound bike after 1 year of use is 50 quid.

Don't see how anyone could argue that fair market value of a 1000 pound bike after 1 year of use is 50 quid.

Well if people were made to pay the true market value (ie what you'd get for it s/h) that would be one way of instantly killing the scheme. I don't think that's their intention (yet), so can only assume that by "full market value" they don't mean the true market value – it will be an accounting thing related to what a company would write such an asset off for.

TBH – I'm surprised more employers don't keep the bikes and sell them on as 2nd hand. They'd get a lot more than £50 for most of them.

They could also not increase people's salary at the end of the scheme if they wanted to be really evil!

Under the rules of my works scheme we have to keep the bike for 3 years, so I suppose the value would be pretty much zero anyway.