We are a company of three. I want a new bike. I want 42% off a new bike. I will actually ride it to work sometimes. Is it possible and who pays what?
Speak to local bike shop for starters. But, no idea as to answer in your case. 🙁
You prolly want to read a page like this
http://www.cyclescheme.co.uk/employers
I've bought a bike, but my employers set it up. Only 3 people took them up on the offer because they phoned up each person and said "you have to use it every day and the tax people will check up on you!".
I don't think you'll have that problem though.
Basically works like a salary sacrifice 'loan', the scheme used to be much more user friendly but alot of the allowance 'loop holes' were closed so is now only really viable if the company is vat registered as your co can claim the vat back, one note of caution the bike is the property of the company not you, but at the end you of the repayment period the ownership can be transferred to you (morally how the scheme was supposed to work), you can pay a fee (might be nominal or expensive depending on the provider) to 'buy' title to the bike (how the large players in the market do it) or you can hand the bike back.....
It's a bit different to the hustler's description on Cyclescheme.
Mine is currently on a 3 year lease (the initial year was up in January) had to pay about £60. At the end of the 3 years it's mine.
(Although I suspect it's mine now, unless I leave the company.)
I dont see how its different? you paid a fee at the end, the 42% touted in all the blerb you see is basically the 'loan' is paid b4 tax and NI are calculated and has nothing to do with the price of the bike, and so is relative to your earnings being a 40% tax payer if you earn less the saving is less, could even 'cost' you if you are a non tax payer
Can't the company just buy it? This is how I did mine - no need to be in any scheme and the bike can be written off in a year - and yes mine gets me to work every day. The company is responsible for the safety of the bike so I appointed myself bicycle safety officer. 🙂
[i]I dont see how its different? you paid a fee at the end..[/i]
[i]Officially[/i] my lease doesn't end for another 3 years. That's how it is different. So if I leave the company before then, I don't actually own the bike.
how much in real terms do you actually save doing this?
I'd imagine around that time, a nasty thief will have been active in your area! 😆DezB - Member
So if I leave the company before then, I don't actually own the bike.
seosamh77 it depends what rate tax payer you are,a 40% tax payer will save approx 42% as the 'loan' is deducted before tax and NI are calculated, however if you are a zero tax payer and the scheme charges annual/end of term fees then it could actually cost you money, but is a convenient way to finance a new bike.
one note of caution the bike is the property of the company not you, but at the end you of the repayment period the ownership can be transferred to you (morally how the scheme was supposed to work), you can pay a fee (might be nominal or expensive depending on the provider) to 'buy' title to the bike
@ dezb isn't that what I said
I paid £593 + £60 for a £949 Cannondale crossbike.
[i]dezb isn't that what I said[/i]
Maybe, couldn't make it out, to be honest!
I paid £593 + £60 for a £949 Cannondale crossbike.
Then you are on or around the 40% bracket for earnings and the scheme works well for you, not everyone's savings are as good
cool, cheers.
I set it up for my company and there are only 2 of us (and it was only me who wanted a bike). I didn't go through a provider I just sent the details to our accountants and it was simple as.
If you own the company then I think you can do something with the VAT and make it even cheaper for yourself but I'm not 100% positive about that bit.
cubist is correct the co can claim the vat back on the bike (if they are vat registered)
Will a 150 travel mtb'er raise a few eyebrows with the tax man then? We are vat registered, I'm just after getting a bike cheaper than "full price" to be fair.
dont thin the vat man cares about the type of bike, you might have a particularly gnarly commute 🙂