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Cycle to Work Scheme.

  • This topic has 19 replies, 11 voices, and was last updated 12 years ago by gr3g0ree.
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  • August 1, 2014 at 5:09 pm #22048
    Leeroy_Silk

    A year ago I used Cycle Scheme to help fund a new road bike. I ‘borrowed’ £1,000 from the scheme and invested an additional £1,500 of my own cash into the bike.
    For the past 12 months I’ve paid back £83.33 per month effectively paying back the £1,000 borrowed. I’ve now reached the end of the agreement and have three options:
    1, Pay £70 and hope the ownership is transferred to me in 36 months.
    2, Pay £250 now and ownership is transferred to me now.
    3, Hand it back to Cycle Scheme forfeiting my £1,500.

    I appreciate I’ve saved on income tax and national insurance but am I right to feel slightly aggrieved at having to pay more money into a bike that I’ve effectively now fully paid for.

    What are your thoughts? Were any other Cycle Scheme riders out there aware of this?

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  • August 1, 2014 at 7:08 pm #807109
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    bigshape

    why do you have to pay £250
    why do you have to pay £250 to own the bike now?
    i thought the final payment at the end of cycle scheme was the tax on the final value?
    i.e. 20% of £250… or have i got that wrong?

    August 1, 2014 at 7:08 pm #807107
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    glynr36

    It’s what Dave said, you’ve
    It’s what Dave said, you’ve paid tax on £1000 less over the allowance for the year.

    August 1, 2014 at 6:34 pm #807105
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    dave atkinson

    you paid the £83.33 back
    you paid the £83.33 back before tax and NI though, right? so presumably you’re well up on the deal even with the £70 market value payment? that’s kind of the whole point.

    August 1, 2014 at 5:52 pm #807103
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    chivers67

    I felt the same to a degree
    I felt the same to a degree but having saved on Tax and also had the benefit of cycling thus saving money, one further payment is all that’s necessary now? It’s yours it’s just that the only way round it for somekind of Tax “loop hole” is you’re still leasing/borrowing it

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