I finished my 3 year scheme in January, I was given two options:-
1. Do nothing, the bike would become mine and I would be liable for the tax on the “fair market value” of the bike as per the HMRC guidance (3 year old bike over £500 initial value = 12% of original value = £120).
2. Return the bike and pay a collection fee(£80 + VAT).
I don’t think they wanted the bike. 🙂
The value of my voucher was £1000 which made the residual value £120, I paid the 40% tax on that = £48.
For a £1500 bike that would make the value £180 and the final payment £72 @ 40% tax or £36 @ 20% tax but to allow the purchase of a bike over the value of £1000 the employer has to be a licensed credit broker.