I fancy getting an e-mtb but can’t really justify the cost, however if I could get one through C2W it’s looking like a no brainier. I’m going to approach our HR department see if they would open up a C2W scheme.
I want to make this as easy as possible for them so they say yes and also make sure we get on a good scheme. I’m sure all the C2W providers are skimming off cash in various places, either from the bike shops, employees, or employers, so which ones are the best?
I’ve looked at a couple, so far the “green cycle initiative” looks ok as they don’t charge the 7% handover at the end of the 4 years and they also offer the employer finance at 6% so it doesn’t affect their cash flow, this still works out as a saving as they save 13.8% on NI. I’m thinking of proposing this one, but are there any pitfalls with this one, or are there better schemes I should look at?
You dont need a "Scheme", its a non taxable salary sacrifie benefit. Company just lowers your salary by x amount and buys the bike. You pay them back as your salary is reduced. Dont need to worry about who to buy the bike from, admin fees etc. They just do a letter stating your salary is now x and the bike is theres till you pay it back. Do a bit of googling and you will find the info, dont get suckered into a commercial busines that makes money out of somehting thats free.
Cycle to work is probably the easiest to set up for an employer & for employees. Don't suggest anything that is Halfords scheme they are a nightmare.
You dont need a “Scheme”, its a non taxable salary sacrifie benefit. Company just lowers your salary by x amount and buys the bike. You pay them back as your salary is reduced. Dont need to worry about who to buy the bike from, admin fees etc. They just do a letter stating your salary is now x and the bike is theres till you pay it back. Do a bit of googling and you will find the info, dont get suckered into a commercial busines that makes money out of somehting thats free.
Agree, that would be ideal, but suspect our HR department won’t want the hassle/extra work of administering a scheme themselves, I think if the bike is over £1000 they would need to get themselves approved as a credit broker with the FCA from what I read.
I think the £1k limit was raised some time ago.
Did you spot this thread. Did descend into rants on all sides (including me) but you might get something from it:
https://singletrackworld.com/forum/topic/cycle-to-work-scheme-whos-good/
My lot just changed to Green Commute Initiative on my suggestion. All the LBSs I spoke to that used it said it was the best for them. So far my employer has said they are good as well.
I've just ordered through them so fingers crossed!
I think the £1k limit was raised some time ago.
from what i understand the £1k limit for the cycle to work schemes was raised, however if you are a company and wish to lend more than £1k, you need to be FSA registered.
Don't go with Evans either
Go with CGI, it's the best one for shops - lowest commission and they pay quickly
My company uses Sodexo to administer the C2W scheme as it is easy for them (very little admin). Sodexo also does the nursery voucher scheme for the company so if your firm uses a provider to do that it is probably easiest to use them as it is just a small service extension. I think you can use most shops with the scheme.
The company is 'medium sized' 50 to 60 people so only has one part time HR person who doesn't have a lot of extra admin time. Sodexo may not be the best but the known one is often the most straitforward to use.
Another vote for the Green Cycle Initiative here.
Easy to use, fast to process
The bike Shop was happy as they charge a much smaller commission (I think 7%) than other schemes so I could neg a few more goodies with my bike.
You dont need a “Scheme”, its a non taxable salary sacrifie benefit. Company just lowers your salary by x amount and buys the bike. You pay them back as your salary is reduced. Dont need to worry about who to buy the bike from, admin fees etc. They just do a letter stating your salary is now x and the bike is theres till you pay it back. Do a bit of googling and you will find the info, dont get suckered into a commercial busines that makes money out of somehting thats free.
The reason that the providers exist is for convenience. If your company sets up a standalone scheme, who provides the contract with salary sacrifice adjustments (after all, you need to adjust this part of your employees’ contracts.); who provides the payments -do you want your payroll staff doling out cheques to random shops?; who ensures the scheme is compliant with HMRC’s tax guidelines, especially once lease payments have ended. If you have a small company, a provider can link up with a third party finance company, etc. In a working environment where nobody has time to do their own jobs it’s easy enough to say that your work can set it up easily, but the reality is that it’s a lot of work to self administer - if you really want to be HMRC compliant.
The provider makes money by selling at full retail price. Nothing more complicated than that - just like a normal bike shop. Some even offer a discount to their larger customers. None of the providers charge more than RRP. The commission charged to a lbs is not (or should not be!) passed on to the customer.
As Jon says above my company wouldn't do it for years because 'hassle' and only when someone pointed out that Sodexo who they already had a contract with did it did they think the money saving was worth the faff for them as it is one form, press button,go.
The low HR hassle is the key for most companies.
The other issue with doing pitching that the company could do it themselves is the capital, and exposure...
If you offer to one employee, you have to offer to all. If a company with 25 employees did it themselves with a £2k ex VAT limit then they could need to find up to £50k of capital to purchase the bikes - now more than ever that could be a lot to ask. Yes, i realise that will come down month by month but it’s still a considerable outlay for a lot of small businesses. Plus, once they’ve bought them, they are exposed to the purchase should the person leave before they’ve contributed the full amount; again right now, with restructures all over this could be a greater risk than it normally is.
I think that’s where schemes come in. No hassle of paperwork, and somebody else funds the capital. Depending on your employer, I’d look at options for operators covering the capital too before you pitch it.
Thanks for the tips, gci can do the finance so hopefully the company won’t come up with any objections. Only other issue is I work from home so hardly ever go in the office and would be too far to cycle anyway, but I haven’t seen much evidence that matters much.