I’m a bit dim and a but confused. I asked a LBS about cycle 2 work and got a different response to what I previously thought. So I’m hoping someone can clear it up. If Mrsflees got a bike on the scheme would the cost cone directly out her tax each month? Or would it be out of her pay?

Out of her pay.

from pay before tax.

http://www.cyclescheme.co.uk/employee,faqs.htm

Thanks that’s what I thought, otherwise you would essentially be getting the bike/kit without spending a penny. The guy in LBS was confusing, if it was in lieu of paying income tax I’d spec her am orange 5 in my size with Thomson finishing kit… Thanks

dont the vouchers only go up to a certain value though ?

Yes mintsauce 5 you are correct – limit is up to £1000, unless firm has a credit license and agrees to do a higher value voucher over £1000.

haven’t they re-evaluated the final purchase payment as well, making it a lot less attractive ?

yes but your company can extend the “hire” period and then the value deminishes over the term further

A company we deal with extends the period to 18 months and then dosent sell the bike to you, they just write it off as asset depreciation, which sounds like a winner to me, still let you keep the bike though.

She’s got her heart set on a Pashley! I’m trying to tell her otherwise…

Pashleys are mint! let her have what she wants

I always makes sure she’s got what she wants,