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Hello, had email from Halfords today, this is my 1st cyclescheme so just wanted check that I am not missing anything.
Have been offered 3 options - cost free extension over 4-5 years, pay 18-25% of original value (£1880) to take ownership now or hand it back.
I plan keeping it, I assume I would be able get another bike on the scheme even going with the extended option for current? Or am I better paying and be done with it?
The one I am paying off is a cargo bike, but thinking get a gravel bike next year for longer commutes.
Thanks,
Niall
https://help.cyclescheme.co.uk/article/42-what-is-an-ownership-fee
Although there are several different providers now, the recommended option is to go for the "own it later". For tax / BIK reasons, it has to be one of those three options.
As for getting another bike on C2W, as I understand it you can have as many simultaneous agreements as you want providing that the total does not exceed the limit set by you employer. As the transfer options outlined above don't incur any further cost, as soon as your current "lease" ends, you can get a new bike regardless of what option you've chosen.
Double check with your provider & employer obviously.
I've had two bikes through Halfords C2W. Both times I've taken the 4-5 year extension option (because, duh, why wouldn't I?), and the second time must have overlapped with the first (I'm definitely in the extension period for the second one and may still be in the extension period from the first one, I'd have to count my years back)
I fully expect to hear nothing from Halfords about either bike ever again, I'm pretty sure that when you take the extension your account/policy/whatever just gets filed in the "phew, we don't need to worry about that any more" file/bin.
Option 1. Extend the scheme for a few more years and pay nothing. Its a no brainer.
I have done this the last few times and it hasnt stopped my getting something else the following year.
What crazy-legs said, Halfords are basically saying is you can lease it off the company for free until HMRC deem it's value negligible.
Legally this means you don't own it, but in reality I can't see any way in which it matters (check the small print if you like, but I've never heard of anyone being asked to return the bike).
Other scheme providers actually charge you roughly the equivalent of another moths payments. So Halfords is actually a really good deal for the consumer, they made their money on the commission upfront.
In terms of getting another bike on the scheme, the only thing that matters is the amount of credit, once you've made the last payment you're free to start another one, even if the first bike is still under a (cost free) lease agreement.
Thanks all, just wanted make sire I wasn't missing anything as extended lease seemed best option.
As for getting another bike on C2W, as I understand it you can have as many simultaneous agreements as you want providing that the total does not exceed the limit set by you employer.
In the early days of the scheme, as long as you didn't go over the voucher value you could have multiple bikes in the same year. Think the theory was for public transport users, you could have a bike to ride home to first station then second station to work.
One thing to be aware of is what will happen if you leave your current employer in this period. You will be deemed to have received the bike as a gift from your employer and will be liable for the tax on this gift. In my case this was reported to HMRC and I had to do a tax return and pay the appropriate tax.
In the early days of the scheme, as long as you didn't go over the voucher value you could have multiple bikes in the same year
I think you still can get a voucher to cover two bikes. I only used the scheme once, Halfords via BikeTart. Never got any emails at the end of the term, the bike wasn't my favourite and I sold it about 6 months after the scheme finished. Presumably they defaulted to extend my ownership...
Other scheme providers actually charge you roughly the equivalent of another moths payments.
Hmmm. I think you need to stick the word " some" or "one" in front of that sentence. Neither Evans nor Cyclescheme charged more than a penny to extend for me
So Halfords is actually a really good deal for the consumer,
Disagree. The Halfords charge is way too high. Fair enough if you actually find the bike you want at Halfords then fine, but try using the voucher elsewhere on reduced bikes and you'll have to pay a nasty additional fee.
they made their money on the commission upfront.
They make their money on the insane charges on people using their vouchers in real bike shops
One thing to be aware of is what will happen if you leave your current employer in this period. You will be deemed to have received the bike as a gift from your employer and will be liable for the tax on this gift. In my case this was reported to HMRC and I had to do a tax return and pay the appropriate tax.
Again hmmmm. Not convinced. It's a long time ago but I'm pretty sure my extended hires were with the C2W company and not my employer. I certainly didn't pay anything extra when I left in the extended period
Hmmm. I think you need to stick the word " some" or "one" in front of that sentence. Neither Evans nor Cyclescheme charged more than a penny to extend for me
Cyclescheme are one that definitely do now (7%), it's because they only offer a 3 year extended lease, not enough to make it zero. Or rather they only offer a 3 year extension so they can charge you the fee.
Swings and roundabouts on the Halfords charges. When I was looking around shops that passed on the 15% Halfords fee also passed on 7% for cyclescheme, so you're paying 14-15% either way.
In the end I found Alpkit didn't pass on the charges so it was a win-win for me.
Again hmmmm. Not convinced. It's a long time ago but I'm pretty sure my extended hires were with the C2W company and not my employer. I certainly didn't pay anything extra when I left in the extended period
I'm not even convinced HR processed the outstanding payments when I got made redundant. I checked the other week and my gym membership is still running 3 paydays after I left.