Cyclescheme.. why so bloody VAGUE??
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?Posted 4 years ago
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.Posted 4 years ago
Are you sure that’s not the old advice? I seem to remember they changed it since I got mine.
Had a quick check…
“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%Posted 4 years ago
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.Posted 4 years ago
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…Posted 4 years ago
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