C2W Scheme – new Market Valuation guidelines published.

I change my commuting bike at least annually so it never gets shagged out

not anymore 🙁

Pk – 'Cyclescheme will be phasing in the Condition Assessment process by applying it to all vouchers ‘requested’ after Thursday 30th September 2010.
Vouchers ‘requested’ prior to this date will be subject to the existing Cyclescheme market value process'.
Does that not mean that if you already have the bike through cyclescheme then you will pay the 5% of purchase price plus vat?
Or have i got it wrong?
Are you with cyclescheme as i thought most were 1000gbp limit?

Am with halfords, but am guessing they'll standardise the process to get it agreed by hmrc. Was thinking more about future options than anything else.

Will probably end up getting a 600 allez or something and killing it over a year

Well it would be a terrible shame if your bike got stolen a month before your cycle to work scheme ran out. I guess 25% of nothing is nothing and of no taxable benefit whatsoever…. 😉

Pinkstiffee – Member
Well it would be a terrible shame if your bike got stolen a month before your cycle to work scheme ran out. I guess 25% of nothing is nothing and of no taxable benefit whatsoever….

Except that you are obliged to ensure that the bike is insured while it is in your custody and make good any loss to your employer…….

Doh! Lol

I was looking at this new final valuation process today and think I have found a cunning way around it.
The 25% valuation dosent apply to clothing or equipment not fitted to the bike.
therefore I can charge less for the bike and more for the clothing.
e.g. if someone bought a bike (£700) and a jacket (£25) for £725 total
If i charged £325 for the jacket and £400 for the bike then the final valuation is based on the £400 for the bike.
The guidelines dont tell you what the market value of the bike should be when you buy it.
Besides, as a retailer I can charge what I like for the products I sell.

Ok So Im about to jump on the Cyclescheme, My company says that its a 2 year hire period but you only pay for the first 12months so what final payment % does that leave me?

Without going and reading the hmrc doc again I’m sure the 24 month payment is 18%.
The way to do it is to get a condition assesment set up as per Cyclescheme’s process or indeed just let them facilitate the final payment process. Yes, the company looses out on the winfall at the end of the loan period but in the scheme of things is all the paperwork and hassle worth the small percentage return? It all depends on the company’s reasons for doing it. I had 100 people take the scheme on this time. The cost of the bikes was £85k so at a 5-10% return (condition C or D) is it worth the hassle? Our finance dept thought not. ( they may just be lazy?):D

Charge the last few years to the employee at £1 a year until the bike is worth £0 on the gov valuation.