Its not the death of the scheme, its just changed.
Before the changes it was pretty much one size fits all but now its a case of having to look at the options more carefully for employers and employees in terms of both how much to spend – above or below £500, which is how HMRC split the fair market value – and also in terms of how schemes are administered.
The main options for employers:
1. Extend hire agreements
2. Run a P11d
3. Reduce the % of salary sacrifice – eg, you pay back 80% of the bike’s value in year one and then the cost of transferring ownership helps employer recover their outstanding costs without too much pain to the employee after one year or possibly longer
4. Stick to one year transfer of ownership