How much does your employer charge you to buy a cycle to work bike at the end of the year and close out the process? I thought it was a nominal amount like 10 quid, or even 10 pence, but an admin bod I spoke to today was talking about 'fair market value'. Surely this isn't literally correct - market value for my tricross would be about 50% of list price.
We're coming to the end of the first year of implementation, so my employer's not been through the process yet. They are eminently capable of bolloxing it up though - what should be the final price?
The employer can charge as much or as little as they like technically.... but the usual is 5% of original retail + VAT
we pay 5% too, seems a common figure.
Gulliano said - typical figure is 5%. but no gurantees unfortunately.
My company charges just 3% so it may vary, but it won't be a lot of money compared to your savings.
I agree, in fact check the agreement you signed and you will probably see that it is either detailed on here or the 'credit' that you take i.e. the 12 months interest free payments probably already includes the nominal sum so you have already paid it. Mine does.
This is because any sensible employer wants it all sorted out up front, they don't want to come and find you wherever you may be at the end of 3 years and ask for additional funds.
That said that assumes your employer is sensible...
i gave them 20 quid for a £1200 bike. but i do run the scheme.
£35 last time (£999 bike)
10% for me, but our total cost got an additional 10% off at the start, so I figure that worked out about 0. We'd all said 5% was the norm, but the VAT advisers insisted on 10.
I think they're going to ask us for 4% or £20, whichever is less.