At the end of the 12 months how much have cycle scheme asked for as a fair market value for you to buy the bike yourself?
Looking at spending 1000gbp so would especially like to hear from you if you have used the maximum amount.
Anyone not bought the bike at the end or not been offered the bike?
Thanks Ben

most companies let you just have it, thats what id be trying to get anyway

5% plus VAT here. It came in about £56

5% + VAT here.

It's the company's choice whether we will opt to sell the bike to you at the end of the hire period. If we do and you choose to become the owner of the equipment, you will be offered the opportunity to pay the fair market value for the bike from your net salary. Ownership of the equipment will then transfer to you upon receipt of the agreed value.

How much is a fair market value?

This cannot be stated before or during the hire period as any guarantee that we give you over the option to own the bike may constitute a benefit in kind, which would not qualify for the tax savings. If we decide to offer you ownership it is up to the company to decide how much the fair market value will be and this will be subject to VAT.

However, as stated on the Cyclescheme website, the fair market value is the amount that a buyer would pay to a seller to purchase the bike and equipment. Whilst each bike is assessed separately, in their experience the market shows values to be around 5% of the original voucher plus VAT.

I asked HR the same question recently and got the reply, above.

I think the underlined bit was a pretty heavy hint 😎

Depends on your accounts staff. Its a PITA accounting for it, so its eaiser to give it to you. Attempting to find the fair market value for somthing thats eaiser written off from an accounting point of view is pointless. 5% or any % is still a bit of a guess, so the accounts dept may as well guess 0% and write it off.

Ahh missed that!

Were the bikes bought, proper full bikes? I will buy a bike, but a frame makes more sense. How far have you pushed it? Do you use it for work?

Cyclescheme collect the payment and for me also was 5% + VAT.

Mine is due to be a 13th monthly payment at the gross amount.

Finishes this month so will find out for sure soon.

Anyway, after the budget tomorrow this may be an academic question 😉

the fair market value is the amount that a buyer would pay to a seller to purchase the bike and equipment. Whilst each bike is assessed separately, in their experience the market shows values to be around 5% of the original voucher plus VAT.

In which market are these people buying these 1-yr old bikes at a 95% discount to new? I would much rather buy a secondhand bike at 95% off than buy a new one on Cyclescheme. 🙂

Hijack-Has anyone set up a scheme for their business? We have 13 staff on the books and I know at least 3 would be interested. Looking at the website it looks like you get larger companies to run it for you? however I dont know how much control we would still have over how much is paid etc…
Any advice?

5% + VAT About to get another one 😆

Monkeyfiend – I helped set it up for a small company a few years back. You don't have to go through one of the big companies; we just bought the bike on the company credit card and wrote an agreement to cover repayments etc. The only potential issue is if you outsource your payroll, but they should be able to cope with it.

Stealthcat, payroll is inhouse so thats ok. so do you go off recomended figures for repayments or just make them up (keeping it fair obviously)?

I got one set up just for me and its simple to do it in house.

ok, well I'd be setting it up mainly for myself, but offering it to others naturaly. so did you (those that have) get in contact/register with cyclescheme for advice?

It was about 6 years ago, so it's a bit vague, but I think it was something along the lines of "price ex VAT/13" and 12 salary sacrifice payments and the 13th gross.

We didn't contact Cyclescheme, just looked at the HMRC info and worked it out from that.

All the info is out there. There is a .gov site that says you can do it in house I printed off the info and gave it to my boss and he was happy with that. We did sign up to cyclescheme but the bike shop told me that they take something like 10% off the shop on each sale and if we did it inhouse they would knock off some money for me. It was all very easy and faster than waiting for cyclescheme to post out a voucher.

Cheers, I'll do a bit of research.

Spesh TriCross at about £750, final settlement was just under £50 (£48 IIRC). nothing to complain about

5% + vat for me – 58 quid or something like that.

Looking at the .gov site, a business can purchase bikes and loan them (not hire so no cost?) to their employees and just right off depreciation each year- this can go on indefinitely or the co. can sell the bike to the employee at full market value. Its probably more complicated then that but have I read it right-you can just buy a fleet and let your staff borrow them?

Monkeyfiend that is correct, as long as the scheme does not discriminate between employees.

about £45 quid on a £100 bike for me…

They wanted £90 to pick it up if I surrendered it – someone has got a cushy job out there…

Must check my payslip to check they took the money…