Cyclescheme.. why so bloody VAGUE??

Home Forum Bike Forum Cyclescheme.. why so bloody VAGUE??

Viewing 28 posts - 1 through 28 (of 28 total)
  • Cyclescheme.. why so bloody VAGUE??
  • Premier Icon DezB
    Subscriber

    Reaching the end of the year and received an email “What happens next?”
    Oh, so this clears things up:

    We will shortly be in touch to offer you the following 3 options.
    1. Cyclescheme’s Extended Use Agreement (EUA)
    Pay a small, one-off, refundable deposit (3% or 7% of the equipment value) and continue to use the bicycle for an extended period of up to 36 months.
    3% OR 7%?? up to 36 months??

    At the end of this period, … Cyclescheme may at its discretion, offer ownership of the bicycle to you ..
    At its discretion??

    2. Alternatively, you can take ownership of the bicycle for a much higher valuation.
    £200? £300? £1000000???

    Why can’t they just give FACTS?

    trail_rat
    Member

    “1. Cyclescheme’s Extended Use Agreement (EUA)
    Pay a small, one-off, refundable deposit (3% or 7% of the equipment value) and continue to use the bicycle for an extended period of up to 36 months.”

    because the % varies depending on the time the EUA is taken over.

    Premier Icon lunge
    Subscriber

    Also if they give you specifics it turns into a hire purchase agreement which it is not.

    grum
    Member

    IIRC they can’t say that you can definitely have it at the end because then it becomes a taxable job perk.

    Rockhopper
    Member

    They can’t say they definitely will offer it to you at the end of the scheme because then it could be seen as a loan or HP agreement rather than a bike hire scheme.

    Premier Icon DezB
    Subscriber

    Good points chaps. Thanks.
    So the “Much higher valuation” – can’t they say what this is?

    trail_rat
    Member

    nope because it becomes a HP agreement.

    reality is your company will either let you have it on a EUA or at a favorable rate.

    mines just stuck it on a EUA and havnt charged anything 😀

    Premier Icon DezB
    Subscriber

    Can’t imagine what mine are going to do, I don’t think they even know about the EUA.

    core
    Member

    my employer used to ‘sell’ it to you at the end for 5% of original value.

    grum
    Member

    I didn’t have to pay at the end. Don’t know if I even officially own the bike but I’ve had it for many years now. 🙂

    Premier Icon spawnofyorkshire
    Subscriber

    i signed up for the extra 36 months for £40 i think. It then automatically transfers to my ownership at the end.

    Premier Icon miketually
    Subscriber

    After every year, the “much higher valuation” decreases. If you buy it back at the end of the initial lease period you now don’t actually save any money, unless you’re a 40% tax payer and/or got the VAT off too.

    Premier Icon DezB
    Subscriber

    Not planning to buy it back – but I have a feeling that’s the only option they will give me (or try to).

    Premier Icon Drac
    Subscriber

    They offered me to dispose of it or to pay them a failry high disposal fee to return the bike. I wasn’t going to pay that so disposed of it.

    They don’t have to do any of this. Its perfectly legal to just give it to you, then pay tax on the value set out by the HRMC.

    The max value I think they have in their charts is 25% for a 1000 pound bike after 12 months, so you’d pay 20% or whatever of 25% – about 50 quid.

    grum
    Member

    The max value I think they have in their charts is 25% for a 1000 pound bike after 12 months, so you’d pay 20% or whatever of 25% – about 50 quid.

    Are you sure that’s not the old advice? I seem to remember they changed it since I got mine.

    muzzle
    Member

    I’m in trouble if they want mine back at the end of the 3 years – I don’t have much of it left.

    I bought this:

    But there’s no way they’re getting this back:

    Premier Icon miketually
    Subscriber

    I think HMRC are starting to get a bit stricter with scheme like this, as they have realised a lot of people are taking the piss. I’d be amazed if it didn’t get scrapped eventually.

    Are you sure that’s not the old advice? I seem to remember they changed it since I got mine.

    Had a quick check…

    http://www.hmrc.gov.uk/manuals/eimanual/eim21667a.htm

    “In either case, as long as any payment that the employee makes for the cycle is equal to or more than the market value, there will be no tax charge under the employment income rules. If the employee pays less than market value, the difference will be taxable as employment income.

    In other words, you’d pay tax on the market value, the maximum market value is 25%

    trail_rat
    Member

    well that was silly wasnt it muzzle

    steve_b77
    Member

    I’ve just had a letter about my last one.

    Pay £250 as a one off payment and it’s mine, or add £250 to my taxable benefit for the next tax year and pay tax on that, which in reality adds next to bugger all as I’ve got a company car anyway.

    grum
    Member

    Are you sure about this bit though? I thought they changed it to a more realistic market value.

    In other words, you’d pay tax on the market value, the maximum market value is 25%

    muzzle
    Member

    well that was silly wasnt it muzzle

    Nah, it’s much more fun to ride now 😀

    Are you sure about this bit though? I thought they changed it to a more realistic market value.

    Yes, its further down in the link up there. (Remember its the value to the company with their disposal costs etc.. not what you can get on ebay)

    Also explains the 3% or 7% clause – its 7% if over 500 quid. THis effectively transfers ownership after 36 months, and you don’t even need to be employed by your company for this to happen.

    Premier Icon DezB
    Subscriber

    its 7% if over 500 quid

    Ah, that makes sense – I thought that the EUA was fixed at 36 months.
    So £70 and I keep my CAAD-X for 3 years. Sounds ok.
    We’ll see.

    What did you do Muzzle – sell the Cube? Surely that’s illegal if you don’t own it? (Nice Handjob btw)

    muzzle
    Member

    What did you do Muzzle – sell the Cube? Surely that’s illegal if you don’t own it? (Nice Handjob btw)

    Cheers! Bought the Cube, changed the fork to a Reba a few months later. Upgraded various other bits over the next few months, then bought the Handjob frame and transferred everything to that and sold the Cube frame. Been a bit of an evolutionary process to move from one bike to another. Current bike has the original wheels, saddle, brakes, cranks, chainring/derailleurs… and erm, that’s it I think.

    Not sure Cyclescheme would officially condone it, but I’m not too worried that it’ll be any sort of a problem at the end of the 3 years…

    Premier Icon DezB
    Subscriber

    Not sure Cyclescheme would officially condone it

    Er, I think we know the answer really!

    I’ve just found that the 2014 version of my CAAD-X has discs… ARGH!

    Premier Icon DezB
    Subscriber

    Just got the final figures through –
    £237 to buy the bike
    £66 to continue Cyclescheme with it for up to 36mnths.

    What to do what to do…. doesn’t say how long I have to decide…

Viewing 28 posts - 1 through 28 (of 28 total)

The topic ‘Cyclescheme.. why so bloody VAGUE??’ is closed to new replies.