Company/govt Bike to work scheme

We have the scheme in place at work. Looked at it a while back, as did a colleague. Check who is the owner of the bike, is it the company or is it a finance company your employer has used. As the user, you are only hiring the bike during the payment stage. You also need to check what happens on completion of last payment, where does ownership lie and is it possible to formally change ownership to the user.

It's not as straight forward as it looks.
 
DCB said:
We have the scheme in place at work. Looked at it a while back, as did a colleague. Check who is the owner of the bike, is it the company or is it a finance company your employer has used. As the user, you are only hiring the bike during the payment stage. You also need to check what happens on completion of last payment, where does ownership lie and is it possible to formally change ownership to the user.

It's not as straight forward as it looks.
Click to expand...
My mate has just finished paying for his and now owns it outright, his company owned the bike and just deducted it from his wages and then the final payment to purchase the bike for £80 came out of his wages last month.

He is allowed another one in September so I am putting my order in for a road bike and I will just pay him monthly for it. Quality.
 
DCB said:
We have the scheme in place at work. Looked at it a while back, as did a colleague. Check who is the owner of the bike, is it the company or is it a finance company your employer has used. As the user, you are only hiring the bike during the payment stage. You also need to check what happens on completion of last payment, where does ownership lie and is it possible to formally change ownership to the user.

It's not as straight forward as it looks.
Click to expand...

Nothing ever is.

I got one a few years back and at the end of the year I took the option of just not paying anything and keeping it for another 4 years or something so iv no idea who the bike actually belongs to but it's not me, lol. So the guys that are saying they have saved 400 sheets on a bike that cost a grand seems a bit much to me. The way they showed the prices and everything made it difficult to work out how much it was actually costing IMO.

Iv also read recently that the scheme has changed and isn't really worth doing anymore but I'd need to find out more about it.
 
Also......

You really need to insure it properly whilst it's still within the payment phase. Bike theft in Edinburgh is at epidemic proportions, your household insurance may not actually cover it as it would a 'normal' bike purchased by the user.

Neither I or my colleague went any further with the scheme, it just wasn't for us :D
 
NWJocko said:
Because me saving £200 on a bike is the same as Starbucks paying zip Corporation tax of course.

I get sweet FA help from the state in therapy amd care for my daughter, can't offset the cost of private therapy against my tax bill so if you want me to feel bad about doing this I'm afraid you're mistaken.
Click to expand...

They follow the law, and pay reduced tax.

You follow the law, and pay reduced tax.

If you want to blame someone for Starbucks paying zip Corp tax, blame the law. If someone came up to everyone in teh street and said "pay me £100 and I'll find a legal way for you to pay less tax", you would clearly do it. Can't blame a company for doing the same?!

EDIT: Just as a note, think you may find a slow reduction in companies offering this. It used to be tax efficient for them to do this, now I don't think it is as much (or for the employees, with the 25% final payment making up for the VAT you saved)
 
CheltenhamHacker said:
They follow the law, and pay reduced tax.

You follow the law, and pay reduced tax.

If you want to blame someone for Starbucks paying zip Corp tax, blame the law. If someone came up to everyone in teh street and said "pay me £100 and I'll find a legal way for you to pay less tax", you would clearly do it. Can't blame a company for doing the same?!

EDIT: Just as a note, think you may find a slow reduction in companies offering this. It used to be tax efficient for them to do this, now I don't think it is as much (or for the employees, with the 25% final payment making up for the VAT you saved)
Click to expand...

Sorry, I didn't mean that at all, was just responding to DfT post, fully aware of your point and not blaming anyone.

Thanks for the sermon though.....
 
Doon frae Troon said:
Just wondering if all the acknowledged tax dodgers on here would be first to whinge about tax dodging bankers.
Click to expand...

That thought had crossed my mind!

To me, those that use the scheme to simply save the money, with no intention of using the bike for commuting to work, are tax-evaders! Those that use it as 'intended' - and the likes of Starbucks and 'tax dodging bankers' - are tax avoiders.

Tax avoiders are quite legitimate; tax evaders are not! There's a golf rules analogy about relief from IMs, but it's long winded. The fact that 'the system' is incapable of policing the evaders is regrettable but was probably built into the calculations of the cost of the scheme (or maybe not!!) anyway.

The other thing to consider is that the loan 'ties' you to the company, somewhat, for the loan period!
 
*UPDATE*

I have thoroughly investigated the 'scheme' and my conclusion is:

Yes you make a saving, however it is so small now that it doesnt seem worth the hassle.

Pre 2012 you made a c.52% saving on your purchase, there was a huge uptake and I think the govt didnt want to cancel it but they did want to stop the massive tax income loss they had on the scheme, so new rules came into effect 2012.

So you still make a saving but based on say a £360 bike you would after 1 year, and if you then paid the fee for ownership at strict govt rates, have made a saving of approx £30 depending on your tax bracket.

I have all the facts and figs to show this, and have had it affirmed from various schemes.
 
I've used it to purchase 2 bikes in 2 years. I paid a shade under £400 for a £750 MTB last year, and a shade under £600 for a £1k road bike a couple of months ago... These are confirmed figures and illustrate a substantial saving...
And yes, I have used them to ride to work on occasion, not very often though...
 
bluewolf said:
I've used it to purchase 2 bikes in 2 years. I paid a shade under £400 for a £750 MTB last year, and a shade under £600 for a £1k road bike a couple of months ago... These are confirmed figures and illustrate a substantial saving...
And yes, I have used them to ride to work on occasion, not very often though...
Click to expand...
please share the scheme you used or company and I'll gladly contact them as we have 9 bikes to buy:rolleyes:
 
CMAC said:
please share the scheme you used or company and I'll gladly contact them as we have 9 bikes to buy:rolleyes:
Click to expand...
We use the Evans "Ride to Work" scheme. I have saved 42% on each of the bikes I bought. This is also helped by the voucher that is supplied by Evans - £25 for bikes up to £700 and £50 up to £1000...
 
I looked I to it and came to the conclusion you could save up and buy a bike in the sale for much less hassle, and buy the bike you want, with the spec you want for just as much saving or more
 
Coatsy79 said:
I looked I to it and came to the conclusion you could save up and buy a bike in the sale for much less hassle, and buy the bike you want, with the spec you want for just as much saving or more
Click to expand...

thats exactly my conclusion based on the new laws that came into effect 2012, even the company I was going to do it through agreed its not as attractive now. Yes, you still make a saving but nowhere near the savings Bluewolf is stating so Monday I'll contact Evans and do it thru them if they are confirming (as Bluewolf states) these massive savings.

The govt new law isn't a guideline either, its a law and cannot be fudged so it will be interesting to hear Evans solution.
 
You must log in or register to reply here.

Similar threads

B
Any accountants / Tax Savvy Folk?
Replies
1
Views
1K
bwstokie
B
CheltenhamHacker
How to know what to work on with a pro
Replies
11
Views
1K
ScienceBoy
ScienceBoy
Farneyman
Garden shed coversion
Replies
6
Views
872
Farneyman
Farneyman
CrapHacker
Cavity wall insulation
2
Replies
24
Views
3K
CrapHacker
CrapHacker
Top