Bike to work scheme - Finished?

General cycling advice ( NOT technical ! )
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Pav
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Joined: 6 Jan 2010, 8:48pm

Bike to work scheme - Finished?

Post by Pav »

Have searched forum so appologies if this has been answered.

Plan has been to use a borrowed bike to regain fitness (even have some rollers!) , and come the summer use the bike to work scheme to purchase my own bike (something happened between 21yrs and 35yrs which means I have no kit and have lost my cycle fitness).

My enthusiasm was part due to the promise I would get myself a worthy road bike using the bike to work scheme.

:cry: I am told Devon is no longer in the scheme!?

Does any one know what the score is? Who can and can't use this scheme? Is it gone for good.
mw3230
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Joined: 31 May 2007, 11:22pm
Location: Newcastle upon Tyne

Re: Bike to work scheme - Finished?

Post by mw3230 »

This is an extract ......

Lord Adonis announces the Cycle to Work guarantee
The Cycle to Work scheme is here to stay: that's the news from the Government today with the announcement of the Cycle to Work Guarantee, which both extends and cements the current initiative....


from this site ....

http://www.cyclescheme.co.uk/magazine/

Seems to answer your query although I can't find the date the comment was made by Lord Adonis
Retired and loving it
pete75
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Joined: 24 Jul 2007, 2:37pm

Re: Bike to work scheme - Finished?

Post by pete75 »

The item was posted on 28 October 2009 so the statement was obviously made on or before that date.
The issues linked to in Thirdcranks posting arose after the Adonis statement. They don't mean the scheme will end just that some employers will have to modify the way the way they run things if they wish to continue by giving all employees the opportunity to use a company provided bike to ride to work. Employees under 18 cannot qualify for the scheme as they are unable to sign a credit agreement neither can those on minimun wage as salary sacrifice would take them beneath it. The needs of both groups could be satisfied by providing pool bikes.
I'd guess that a lot of firms, particularly the sort who pay NMW, just won't do this because of the cost of bike provision,admin, care and maintenance of the bikes along with misplaced health and safety fears so will drop the scheme.
Cycle provison for those who don't qualify will cost the firm money whereas cycle to work through salary sacrifice makes money for a business. It saves on employers NI for the sacrificed amount, they can claim capital tax relief for the cost of the bike and in many cases will not pass on all the VAT saving to the employee, retaining some as an admin fee.
'Give me my bike, a bit of sunshine - and a stop-off for a lunchtime pint - and I'm a happy man.' - Reg Baker
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531colin
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Re: Bike to work scheme - Finished?

Post by 531colin »

pete75 wrote:The item was posted on 28 October 2009 so the statement was obviously made on or before that date.
The issues linked to in Thirdcranks posting arose after the Adonis statement. They don't mean the scheme will end just that some employers will have to modify the way the way they run things if they wish to continue by giving all employees the opportunity to use a company provided bike to ride to work. Employees under 18 cannot qualify for the scheme as they are unable to sign a credit agreement neither can those on minimun wage as salary sacrifice would take them beneath it. The needs of both groups could be satisfied by providing pool bikes.
I'd guess that a lot of firms, particularly the sort who pay NMW, just won't do this because of the cost of bike provision,admin, care and maintenance of the bikes along with misplaced health and safety fears so will drop the scheme.
Cycle provison for those who don't qualify will cost the firm money whereas cycle to work through salary sacrifice makes money for a business. It saves on employers NI for the sacrificed amount, they can claim capital tax relief for the cost of the bike and in many cases will not pass on all the VAT saving to the employee, retaining some as an admin fee.


Lots of stuff there I didnt know!
Some of these transactions also cost the bike shop something like 12 per cent as a scheme administration fee, which makes it about break- even rather than profit making.
spanner
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Joined: 24 Jun 2009, 1:26pm

Re: Bike to work scheme - Finished?

Post by spanner »

I personally wouldnt buy a bike through the bike to work scheme because you are paying interest on the payment for the bike which by the time you finish paying for it youve paid well over £100 EXTRA onto the price of the bike
also if you get paid off from where you work does the employer them own the bike not you?
i would rather save money up and buy a bike outright brand new or look for a good secondhand one there are plenty out there bikes which have only been ridden twice going for £60
I got a 1980's Peugeot racer for £50 it had only been ridden twice via the gumtree website, it cost me £10 petrol to get there and back but as i collect classic bicycles reckon it was worth it
this goverment scheme is a ripoff
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EdinburghFixed
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Re: Bike to work scheme - Finished?

Post by EdinburghFixed »

spanner wrote:I personally wouldnt buy a bike through the bike to work scheme because you are paying interest on the payment for the bike which by the time you finish paying for it youve paid well over £100 EXTRA onto the price of the bike

...

this goverment scheme is a ripoff


I'm not sure about this. I got a voucher for £1000 and ended up paying £600 back. The bike is mine and if the option was available to have another, I'd consider it (current employer doesn't do the scheme though).

Technically because I was £50 a month worse off the fixed % of my pension contribution would have dropped by about £2.50 a month, leaving me £30 worse off in the pension but it would require a very long term view to consider £1000 of bike for £630 a 'rip off'.
spanner
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Joined: 24 Jun 2009, 1:26pm

Re: Bike to work scheme - Finished?

Post by spanner »

there are plenty of as new mountain bikes and road bikes for sale on sites such as gumtree
as an example someone in edinburgh was selling a full sus mtb with two helmets two locks and a set of lights for £90 but the bike and helmets etc were worth £170 anyone wanting to ride to work would be better off buying a bike this way than paying for one through the ride to work scheme
i recently got a peugeot aspin racer 1988 model for £45 granted it needs serviced etc but it was a good buy i also got a team raleigh racer for £45 this doesnt need much work done to it just a new pedal due to a bent pedal spindle and a brief checkover
i collect bikes as am in the Veteran cycle club and these bikes will be used on club runs this year
Big T
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Re: Bike to work scheme - Finished?

Post by Big T »

With cyclescheme, you can have the exact bike you want. Buying secondhand, you have to take what's available. Given the technological advances of the last 20 years, I wouldn't want to be riding around on a 20 year old bike, even if it has hardly been used. Others will be quite happy to do so. Each to their own.

I don't see how paying £600 for a £900 bike and being able to pay for it monthly is a rip off.
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gilesjuk
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Joined: 17 Mar 2008, 10:10pm

Re: Bike to work scheme - Finished?

Post by gilesjuk »

spanner wrote:I personally wouldnt buy a bike through the bike to work scheme because you are paying interest on the payment for the bike which by the time you finish paying for it youve paid well over £100 EXTRA onto the price of the bike
also if you get paid off from where you work does the employer them own the bike not you?
i would rather save money up and buy a bike outright brand new or look for a good secondhand one there are plenty out there bikes which have only been ridden twice going for £60
I got a 1980's Peugeot racer for £50 it had only been ridden twice via the gumtree website, it cost me £10 petrol to get there and back but as i collect classic bicycles reckon it was worth it
this goverment scheme is a ripoff


You don't understand the scheme at all then.

Firstly the money for the bike is funded by your employer. The may need finance to raise the money to loan you, but you don't lose out at it's the company who will have to pay the interest.

Secondly, your deductions which pay for the bike are taken from your *gross* salary. Therefore you effectively get the bike tax free, 40% cheaper (depending on your tax situation).

So in the end a bike that would cost you £900 will cost you £540.

My local bike shop didn't charge £100 on top. They charged me the RRP for the bike (there's only one supplier in the UK for the bike I had anyway).
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