hi folks i have had my letter with regard final salary sacrifice and options for

1)final payment of approx £250

2)extend loan period to 6 years and pay nothing extra
(this option means no more tax free bike for six years) however does it matter as the overall saving is now hee haw!?)

3) hand back bike after significant abuse as im bitter

my heart says 3 but my head says option 2

what’s your opinion ?
do you feel slightly mugged also

p.s i am looking for original contact staff benefits signed at Edinburgh bike coop to see the actual wording but cant find it . anyone feel the same as me that its worth complaining to staff benefits that we have been shafted?discuss please

cheers DTD

there are already other threads on the new c2w scheme.

1)final payment of approx £250

Or the tax on the difference between what you pay and £250, which is what you actually have to do according to HMRC.

I think you misinterpreted the intention of btw schemes, tried to use it to your advantage and have been caught out

It’s bad luck, but I doubt you’ve got a leg to stand on. I remember thinking when it all kicked off and everyone was having “a half-price bike every year” that I’d not trust my employer to value it so low as 6% or whatever was being “suggested” (after all, received wisdom on here is 50% original value, less 10% p.a. isn’t it ?)

ANYONE WITH EDINBURGH CITY COUNCIL?

Sorry, don’t work for a council or a large company, but we run and administrate our own HMRC approved cycle to work scheme in house without a third party facilitator such as Cyclescheme.

The company own the bikes, so at the end of the hire period our members can take one of the following options;

1- Continue to use the cycle free of charge, with no further payments.
This means the company still own the cycle and the hirer cannot sell it as technically it is a company asset and HMRC might require to see it if a check was ever carried out.
When the cycle is six years old ownership can be transferred to the employee with no tax liability.

2- If the employee wishes to purchase the cycle at the end of the initial hire period we will sell the bike for, say £1, and they will then be liable for the tax on the balance left between the HMRC fair market value guidelines.
So, on a one year old £1000 cycle a basic rate tax payer will pay 20% on £249 which equates to £49.80 tax liability collected via a P11d ‘benefit in kind’ form. Total cost to transfer ownership £50.80 which will equate to approx. 5% of purchase price.

Handing the bike back to your employer or worse still, the third party administrator, seems a crazy option to me.

Have a read of this article about the changes

Tam – looks like this guy also work for the Edinburgh City Council??

http://www.singletrackworld.com/forum/topic/my-cyclescheme-final-payment-is

thanks all 😀