how will cycle to work affect my salary

having recently joined a com pany that does c2w and having to sell my old mtb, im looking to get a new one on the c2w scheme.

however i am unsure as to how it will affect my salary – reason being i am trying to budget and dont want to find that my take home is affected by say £50 per month cos im not rich.

i would get a £1000 voucher, and im in the 40% tax bracket.

On cyclescheme?
try this calculator
http://www.cyclescheme.co.uk/calculator

£48.33/month

http://www.cyclescheme.co.uk/calculator

Plus the end of hire purchase cost

It’s salary sacrifice so you pay it out of your gross salary, pre tax and NI. Hence you save if you had to buy it from post tax and NI net salary. If you have non contributory pension amounts then you lose this. In the 40% salary range you should save quite a bit on the standard purchase price. If your company decides you need to pay off the remaining value of the bike after 1-3yrs for you to own it outright you also need to factor this in.

At a £1000 it’ll be around £50 off you wage. IIRC that’s what mine was.

so id being £50 a month worse off? sounds stupd but that i need to budget and decide if its worth it at the moment.

its the halfords c2w scheme.

Not stupid at all that’s how repayment works you need to see if you can afford to pay it back, best to check first like you did then find you’re skint.

Im in the 40% tax bracket

errrr…..that does make you rich 😉

i wish it did chew – in fact id be ok if the missus worked.

so just found some paperwork on it. id have a salary deduction of £62.50 gross per month (can never remember what gross means) which by my reckoning means my salary is reduced by £750 over the year if its that simple.
using the salary calcualtor id lose approx £44 per month? on my current tax code

Gross before any tax, NI. Net after outgoings.

I was waiting for the STW 40% / rich comment.

£63 per month is probably if you are on a lower income tax level.

tony what does lower income mean?

…what does lower income mean?

Less than the £41 866 you need to earn to qualify for the 40% tax bracket

Don’t forget to offset this cost against anything you might save from driving or public transport to and from work.

Don’t forget to offset this cost against anything you might save from driving or public transport to and from work.

Do people actually use this scheme and ride to work?

Yep. Both the bikes I’ve bought on the C2W scheme, I’ve used extensively for cycling to work and by that I mean, 15 miles each way, 5 days a week, right the way through the year, every year. It’s a brilliant scheme.

Plus, 40% starts at only £32k. It’s hardly Branson territory.

Plus, 40% starts at only £32k. It’s hardly Branson territory.

First taxable £32k. You get £10k tax free, so you have to earn £42k to be taxed 40% on everything over that £42k.

Tomhoward is correct. Starts at £42k. People seem to forget first £10k tax free, then next £32k at 20%, then £40k to £150k at 40%. It’s not all @40% if you earn over £42k. In fact earn £43k and you will only pay £1k at 40%.

Income tax and how it works really should be taught properly in schools. It amazes me how few folk (some I’ve explained it to earn 6 figures) know how it works. Anyway, apologies op for hijacking your thread, as you were.

More people would understand it if it was written as simple as tonyg puts it. The tax office website is typical none plain English plain English.

I know it’s been done to death but it is the cycle to work scheme. If you’re after a cheap Bike I’m sure there’s plenty out there.

Look in the sales and 0% finance, you will probably get a cheaper per month deal, but then again using credit on STW is the Devils work, even if it saves you money.

so id being £50 a month worse off?

Yes, but you’ll have bought a bike.

If you don’t want to be “worse off” don’t buy the bike…..

This is how life works. Earn money, live life, spend money. Your choice what to spend/ what to save. If you want to spend less per month buy less stuff per month. Your choice. Simples. 😉

I bought a bike on c2w last year. £1k bike, lower tax band, salary went down about £58 per month. Final payment was 7%. Total cost was roughly £800, so a 20% saving. The bike I bought has only been reduced 10% in the last two sale seasons, so I’m happy with that. Plus Evans were giving £100 of accessories as well with the scheme.

Nearly bought a Defy on the scheme once I’d paid for the CX. Glad I didn’t as I’ve just got one in the sales 30% off.

I am down £53 per month for a £1k Brompton.

depends on how much your bike is…if the deductions (gross) are in the region of £63 then your net is likely to be closer to £38 once you account for tax

depends what they want you to do with the bike once the scheme finishes tho…residual value will be £250 and HMRC will want the tax on that (about £100)

Final payment of £75 to extend my “hire period” for four(?) years and that was it.

On HMRC’s own scheme, so I’m assuming it’s correct!

one thing I’ve never understood about C2W scheme is what happens if the bike is stolen?
Insurance will add to the monthly cost? – guess depends on where you live and if actually used for work the security there

one thing I’ve never understood about C2W scheme is what happens if the bike is stolen?

You continue the repayments and have no bike. Most schemes seem to mention that quite heavily – ie don’t expect another bike to arrive. Though most people with £1k items tend to get it covered on their contents insurance.

You continue the repayments and have no bike

that was my recollection from looking at mrs antigee’s work scheme a few years ago – I sort of hoped that the larger scheme providers had rolled insurance into the overall package – guess that makes too much sense

It’s worth noting that Evans will do their sale prices on Cyclescheme. I got £120 off a 2014 bike in January, plus the scheme saving on top of that.

I sort of hoped that the larger scheme providers had rolled insurance into the overall package – guess that makes too much sense

Judging by how much time people spend reading things like policies and small print I’d assume the conversation would be along the lines of
“My Biked was nicked”
“Was it locked in the manner specified in the insurance docs we gave you”
“My Biked was nicked, what documents”

Here’s a thought…get a cheaper bike and pay less per month?

Our scheme made it clear you had to insure their bike, same as with a car on HP.

You could always buy a bike that costs less than £1000.

I ride to work on a £400 Genesis Aether, as well as using it for sportives and other road rides. It’s a really good bike and is very comfortable. Another £100 or less for mudguards, gatorskins and lights and you’ll be sorted for going to work.

Here’s the newer, replacement Volant model for £400:
http://www.winstanleysbikes.co.uk/product/59075/Genesis_Volant_00_2013_Bike_GN75150?gclid=CMLZuNbKrsACFfOhtAod3T4Adw

Maybe go for a bike around that level instead?

Iirc there was a friendly quotation page on the c2w site that predicted your payments when you filled in the bike value/ your salary etc. might be a good first start!

I got my genesis latitude 20 on c2w already discounted from £1600 to £1000 by winstanleys then used the scheme and ended up paying £55 a month for a year.

I’ve never heard anything else from them or paid anything else since. That was nearly 3 yrs ago.

Iirc there was a friendly quotation page on the c2w site that predicted your payments when you filled in the bike value/ your salary etc. might be a good first start!

2nd post has a link. 😀

£1000 bike to cycle to work… 😕 I use an old MTB with slicks made up from bits from parts bin. Costs are almost zero per month.

Parking in Leeds for a car £5 to £8 per day petrol about £50 per month . Factor in other savings such as no point in using a gym , occasional lump sum bonus for being victim of bad driver cycle to work leaves you quid’s in .

My Planet X came in at £1000 plus an admin fee. The deduction from my salary was £83 per month (before taxes etc) since its finished I’m about £56 better off.
I had to pay an extended loan period (ie another 3 years) upon completion of £70, so in all I spent about £800 on the bike, spread over 14 months.
Its still a saving of £200, but tbh you’d probably find better deals on 0% finance and last years models.

You can get last years models on C2W scheme too with the discount or even ask for one from the shop, I did and got 10% plus then with the savings on the scheme I got a £1100 bike for around £700. Can’t see how 0% deal beats that.