Looking at new bikes...shop suggested I use a cycle scheme voucher but said I wasn't bothering as my employer still limits it to £1000, and the bike is more than double this price.
They said they'll let me top up even though it's quite a bit over.
But I don't understand how the final value thing works, would it be based on the £1k voucher value, or the price of the whole bike? If it's the whole lot then the final value could wipe out the initial saving!
It’ll be on the thousand quid, else otherwise you’d have to tell them you’ve topped up, which isnt allowed, as you’d both (employer and employee) own the bike. It’s nothing to do with the shop.
Use the voucher to upgrade components, in a separate transaction
Tom nails it with this:
It’ll be on the thousand quid, else otherwise you’d have to tell them you’ve topped up, which isnt allowed, as you’d both (employer and employee) own the bike.
Not so convinced about his final suggestion. Just use the voucher to pay half.
But then you would have two entities owning the bike, on the receipt.
My suggestion is buy the bike yourself (or a lower specced one) then use the voucher to upgrade/make up the difference in spec. You own the bike, the company owns the upgrades.
Had two over the years. Been asked for nothing.
But then you would have two entities owning the bike, on the receipt.
Indeed. And that is theoretically a problem if you decide to relinquish ownership of the bike part way through the hire period.
Ie it is not actually a problem at all
Ie it is not actually a problem at all
Depends how confident you are you will be employed to the end of the term
Depends how confident you are you will be employed to the end of the term
Shouldn't be a problem as the scheme should have a get out in case you cease employment with your employer. That won't involve the bike being returned.
use the voucher to buy half the bike, worry about ownership issues later, its not like it'll ever be returned.
our company scheme, you pay income tax on 25% value (or 10% under £500) at end of the year.
hence the bike was £1k , you pay tax at 20/40/45% o, £250.
As above. Scheme rules don't allow a top up, but the shop will provide a description that lists the value of the bike at £1k, even if it's £2k.
The shop is taking a risk more than you.
In reality it will make no difference as to how you pay the £1k voucher value and end of scheme admin.
If the shop were to get caught, they'd probably not be allowed to accept vouchers again which could impact their revenues.
I was often offered "top ups" or sales bike etc, which suddenly had to be withdrawn when they discovered my employer is HMRC.
Shouldn’t be a problem as the scheme should have a get out in case you cease employment with your employer. That won’t involve the bike being returned.
Indeed, it will be as simple as you have to pay the remainder of the monthly payments in one lump sum, which will probably come out of your final pay packet. No one ever wants the bike back, it's just too much hassle all round.