P1Fanatic

Need another form of exercise and after finding out how much local woodland I have nr my house I think mountain biking is a good form as any.

Got an old carrera (8yrs or so) thats in fairly good nick that will do the job for now but typical bloke, I am already looking at something a bit more modern.

Work is part of Cyclescheme although I cant join it now until March 2008. All the figures look good saving around 40-50% on list price and at least 5 big bike shops around me (Reading) I can buy from.

Has anyone else already participated in this scheme and are their any hidden costs or info youd like to share (Im aware of the fair cost value you pay at the end of the loan period but its only 5% plus vat)? Im not sure how they work out which tax rate they apply to you as I do go into the 40% tax band already - therefore I assume thats the rate they tax anything additional on.

Its one of those things that looks to good to be true so Id like to check with SN massive

Cheers,
Simon

Matteeboy

Yes - from both sides (run a company so an employer and employee).
Best benefits are if you are a high earner.
Your company only saves VAT and very minimal NI so might need some persuading though.

Works out well if you can get someone to do the form filling.

Got a £1200 Stumpjumper Comp and a £500 Globe IG8 hybrid for wife and I through it. Had to chip in £200 as it tops out at £1000 per bike.

To be honest, if you are "in" with your employer, that 5% buy out fee can be whatever you want and once signed up, no one will check anything. Don't even have to set up the salary sacrifice, use it for work, or anything really - very flexible.

P1Fanatic

My company is running this since April this year and seem to do all the paperwork. I just have to get a quote from a listed supplier and then submit it to them for a voucher to enable me to purchase at said shop.

I would imagine they would do things officially as rather a large company i.e. top 2 Global ISP and Telecoms Provider.

My basic salary only goes into the Tax bracket by £2k but additional earnings such as bonus, shift, oncall and overtime add another £13k pa. So I assume with this total gross earnings I should get the most benefit in terms of tax?

Simon

SiPie

Get a tax free bike for work | CYCLESCHEME

Info is here

1)Just remember that you must insure your bike (even although it remains the property of your employer)

2)Your never own the bike during the loan period

Just a few negatives that jumped out at me

Matteeboy

Simon - Sounds like you'll benefit.

Just don't leave (or get the sack!) for a year and you'll be fine.

P1Fanatic

I saw those but 1) my current bike is insured under House Ins anyway 2) I assume thats so you cant do a runner with it until its paid for. Same as any car loan from a dealer.

Simon