Cyclists and Cycle to Work Scheme?

Mr F does cycling and is involved in the cycle to work scheme!! the hybrid ones are the best, lighter and the like, i can ask him now if you want a quick guide as he recently spent 3weeks picking and researching his new bike lol

His advice:

Assuming its to bike to work/lesuire, I would go mountain bike with front suspension, hybrids are good but only on really smooth tarmac (mine is a hybrid and I prefer my mountain bike).

Try and go for one without grip shift gears but best to get an aluminium lightweight frame

Prob avoid Apollo they have loads of money off in Halfords but they're not great built.

Depends where they getting it from, if Halfords look for gt or carrera from about 250

If a local shop they normally have good brands Raleigh are still good.

Oh yes please Flow!

From an employer's perspective, these schemes are a nightmare!

Double check how your employer runs the scheme, what they say is a huge saving might not actually work out as such, depending on many factors!!

Much appreciated Flow and can you pass my graitude on to Mr F. Ta!

I must admit I've definitley opted for high end rather than if I was paying outright I probably would have just bought one for £100 too. I just hope that I get my wear out of it, but I think I will now H has one.

Mrs C do you mind elaborating on what the problems are with the scheme? OH has just applied for a bike through his work thinking it would save him a bit of money while allowing him to spread the payments.

I shall ask MrMini, he is into bikes like.

I bought a bike on this scheme, before the VAT was introduced! Little did I know they would change the rules and decide to charge VAT and also apply it to those who got in before the date! Argh. So I'm paying an extra £10 a month!

I bought a Cube Attention 2011 - beautiful bike!

It depends on how the employer has set up the scheme. Generally the issues are for the employer rather than the employee!

If it is a true cycle to work scheme, the employee is essentially leasing the bike from the employer, who owns the bike initially (or arrange finance through a loan company). The employee pays a rental for the bike over a 12 month period via a salary sacrifice scheme (which is where he would make the saving on tax and NI). At the end of the 12 months, the employee either pays the "current market value" to the employer and they then transfer ownership to the employee. Or the employee hands back the bike.

As an employer, the scheme is risky, initial costs of purchasing the bikes, particularly with high turnover in some areas and the rules around those earning close to national minimum wage. The guidelines from HMRC around the current market value are also a little vague but employers can get into bother if they are not charging enough.

And then you get into insurance issues, debt collection for leavers, whether to pay the VAT or pass the cost on to the employee, salary sacrifice scheme compliance.... it's a minefield!!!

My OH got a bike through this scheme and it has worked out really well for him. I was dubious at first, but it does seem to have saved us money. He has got a racing Ridgeback which he loves and I've got a hybrid Ridgeback which I also love and definitely prefer to my old mountain bike. If you go to an independent bike store they should let you have test rides of the ones they have in the show room. I nearly got a Giant before I test rode any and definitely prefer my Ridgeback, so am glad I tested them out!

Thanks Mrs C, it does sounds like a difficult one for employers. OH only works part time so I doubt he'll save much money on the bike but it seemed like the best option to spread the payments and other people in his work hardly had to pay anything to keep the bike at the end of the 12 months, hopefully it'll be the same for him. It'll save him a fortune in getting taxis home every night anyway.

I have no idea what bike he's getting, a black one as far as I know haha, though the guy in our local shop was really helpful advising him on what one to get.

It wouldn't be so bad if HMRC didn't keep changing the rules!!