[Closed] Cycle 2 Work Scheme 2014

I looked at it but decided it wasn't really worth the bother.

Any reason why?

Just finished paying off last years bike, which I'm keeping as it's too good to replace at tbe moment.

As a lower rate tax payer, I saved about 20% on the RRP, after the final payment to extend the deal to effectively make it mine. I'd have to consider if 20% would be worth it before I'd do it again. Could conceivably get an older model for that discount or cut some other deal.

It's not the bargain it was. I considered it as an interest free loan and 20% discount, which, more importantly, also convinced my wife it was worthwhile.

It's not the bargain it was. I considered it as an interest free loan and 20% discount, which, more importantly, also convinced my wife it was worthwhile.

+1

Just taken up the offer again after last doing it the first year it started. Treating it purely as an interest free loan.

So how does it work after the final payment? How much do you have to pay to own the bike?

All depends how you do it. At the end of my period I terminated my lease then my employer gave it me as a benefit in kind so I only had to pay income tax on the current value of the bike.

when you have made all your payments, you then have to pay 5 or 7% (depending on the price you paid) as a deposit for a further 3 year rental period (but with no monthly payments). To own the bike outright instead of the three year deal, you basically have to pay them the money you saved from the scheme in the first place.
Unless you have rubbish credit, go and get a 0% loan, it's easier and, if you do it right, can possibly save you more money anyway...

My £1k bike cost roughly 12 months x £60 per month, plus £70 final payment, so about £780 overall.

A lot depends on the scheme.

The one I just finished, you pay the full amount /12 but taken out of your salary pre tax so it's not too scary.
Then you have 3 choices: give it back and walk away, pay HMRC approved SH value (expensive!) or pay a 13th month then basically get it written off after another 3 years (during which it's still technically on hire to you but you pay nothing). This isn't a unique way of doing it but it's not the only option available to the people running the scheme.

For me, (lower rate payer) once I took into account the tax effects, my £1k bike loan will have cost just shy of £700 I reckon - which is a useful saving.

There are many variables, the taxman could change the rules at any moment and have yer pants down, and you won't get a written quote for the whole deal because they couldn't give you one legally if they wanted to.

I reckon it works ok, but I can see why you might be leery.

Ive just finished one

£1000 bike
£55 a month for 12 months
£200 final fee to make it mine

But you can buy a £1000 bike for 55% purchase price on a 0% credit card, pay it off and be £200+ better off?

Say, this for arguments sake

http://www.paulscycles.co.uk/m1b0s2p3844/GT-ZASKAR-SPORT-2012

Not sure id do it again tbh - £200 final fee was a bit of a shocker

NO final value fee here - at the end of the period its a benefit in kind gift so I only pay tax on the market value (which after 18 months from memory on £1000 bike was 21% - so worth £210, tax only £42 - so lose that from my tax allowance next tax year)

No brainer for me - couldn't make that saving in any bike shop!!

J273 - I had a varying scale for the final payment - I went for the cheapest option so technically I have extended the lease for 3 years

weeksy - quite right, worth checking what you can get for the net overall payment

But you can buy a £1000 bike for 55% purchase price on a 0% credit card, pay it off and be £200+ better off?

So buy a bike that's worth £550 on interest free if you have an interest free card of course. You could of course get a bike for £550 on the scheme and save more than that.

Mine was £1k worked out just short of £50 per month and did the benefit in kind offer which was about £40. So I got the latest model for £640 in total.

J273 - I had a varying scale for the final payment - I went for the cheapest option so technically I have extended the lease for 3 years

weeksy - quite right, worth checking what you can get for the net overall payment

Ah ok - I had 3 options - I wanted to make it mine though so went for the higher option rather than extending the lease as I wasn't sure on whether to sell or not.

Ooops! Forgot to say the shop also knocked £100 off the RRP so it was a £1100 bike.

So are places doing discounted bikes on C2W then? Last bike I wanted I looked into C2W - it worked out more than waiting for the end of season sales. However I didn't get the exact model I wanted as it sold out in my size - takes your choices...

I kind of wish that more places would let you build custom on C2W - closest you get is ribble / dolan but they then charge a fee on top to try to cover the reduced margin.

Yeah you can get discounted bikes on c2w scheme. If your company manages it own and doesn't use one of the providers that take a 10% cut then you will have no problem getting any bike with normal discount.

So I got a £900 bike on cycle to work. 20% income tax and 12% NI savings. So I effectively paid £612 in £55 instalments. At the end of the 12 month lease the value of the bike is 25% (£225) I terminated it and gave it back to my company, my company then gave it to me as a benefit in kind so I paid 20% (£50)tax on the value of the bike. So all in all I got a £900 bike for £662 and took ownership after the 12 months.

I picked up a genesis latitude 20 , the 853 one in October 2012 on the c2w scheme. It was list price £1600 but end of model yr it was discounted to under £1k added new pedals and paid it off at £55/ month over a year. I've not heard anything about the deal since. Nobody's ever communicated with me about it. The payments have finished but got no final demand or statement. My company administer the scheme directly with the c2w people so I just applied, got approved my by co and got a voucher to spend anywhere. I went with winstanleys who were good and dealt with the purchase quickly and efficiently.

Hmm the bike I want is £1099 retail, I've seen it for £850 but that company doesn't do C2W. Maybe I can get a price match / c2W seems unlikely though.

My employer doesn't reclaim the NI for some reason so the savings aren't as good as C2W claim, probably works out as an interest free loan with a small discount.