Cycle to Work Scheme....In Laymans please!!

Discussion in 'Current Affairs, News and Analysis' started by 11D, May 13, 2008.

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  1. 11D

    11D Old-Salt

    Been looking at the cycle to work scheme on Armynet and consulted the PDF document, which isnt the clearest of docs to read.

    Wondering if anyone can put it into laymans terms for the benefit of the rest of us!
  2. You get wet/cold/sweaty until some scrote nicks your bike.
  3. The employee chooses a bike and any accessories.
    These are then purchased by the employer.
    The employer claims back the VAT as a business purchase.
    The amount after VAT is then deducted from gross salaries over 12 months – effectively interest free to the employee. (at source)
    At the end of the 12 months, the employer has the option to sell the bicycle to the employee, for a fair market price (approximately 3.5% of the initial price of the bike).

    Well this is the bog standard government scheme, might be different for the forces.
  4. Go to the London Cycling Campaign website or Evans Cycles, they break it down real easy.
    Essentially you order a bike, helmet, lock and any other stuff you want. It comes out of your salary tax free ie it is deducted before tax (use the Evans calculator to show how much you save) After a year the employer lets you have the bike and all the bits.
    Its an absolute gimme, you get the bike approx half price if you are a higher rate payer.
    Plus cycling is fun, healthy and efficient. If you need help with classes in road skills, fixing it etc most local boroughs run schemes that are massively subsidised.

    What's not to love?
  5. Employee pays twice??????
  6. I will try.

    Goto bike shop- Get a quote for the bike you want plus accessories. if it is cyclescheme, it is a pre-printed form. Sometimes this step isn't necessary , simply express interest with HR

    Hand this into HR and wait (normal turnaround time 10 days depending on efficency)

    Get voucher which is like a cheque you can spend only in a bike shop. Normally this is no more than 1000.00.

    Go to bike shop, get bike. You will be asked to repay this amount less tax and interest in a oner or over time depending on how it is administered at you Company. It equates (really) to about 60% of the value of the voucher.

    As stated above, the company 'leases' the bike to you then you buy it for around 5% of the value at the end of the lease period (12-18 months)

    Many Companies cant be arrsed to collect this 5% and don't.

    There are many Cycle to work Schemes, the best ironically is Halfords which you can use in all sorts of places not just halfords. The worst is Booost, which hasn't paid for any of the bikes yet and is not popular in London.

    PM me if you want any help, I administer the scheme with a few shops in london.
  7. I believe you can claim mileage for using a bicycle as well. Refer to the JSP with the pay bits in.

    (Yes I forgot the ref. no) :(