- how will cycle to work affect my salary
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.Posted 3 years ago
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.Posted 3 years ago
using the salary calcualtor id lose approx £44 per month? on my current tax code
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.Posted 3 years agosamuriMember
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.Posted 3 years agoburko73Subscriber
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. 😉Posted 3 years ago
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.Posted 3 years agotmb467Subscriber
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)Posted 3 years ago
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.Posted 3 years ago
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 ofPosted 3 years ago
“My Biked was nicked”
“Was it locked in the manner specified in the insurance docs we gave you”
“My Biked was nicked, what documents”yourguitarheroMember
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:
Maybe go for a bike around that level instead?Posted 3 years agoburko73Subscriber
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.Posted 3 years agobombjackMember
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.Posted 3 years ago
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.miketuallySubscriber
I’ve had two bikes on the C2W scheme, both were the maximum £1000. It works out at £80 gross and £50 net deduction per month if you’re one of the 90% of people who don’t earn enough to be in the 40% tax band.
Like with all salary sacrifice schemes – nursery vouchers, pensions, etc. – if you’re one of the richest 10% people in the 40% band, you save even more per month than people who are less well off.
And if you’re not using the bike to ride to work for >50% of its annual miles, you’re evading tax.Posted 3 years agotrail_ratMember
” wouldn’t cycle to work on a £1000 brand new bike, odds are it would get stolen. I commute on an 8 year old rusting Il Pompino, which cost £600 when I bought it……”
So your work gets alot of bikes stolen and hasnt done anything about it ?
Lifes too short to ride shit bikes.Posted 3 years ago
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