Tax Free bikes

[RJ Fan club]

Quick question, I'm thinking of doing this as work are running at the mo. I've seen a bike I like, accessories etc,

 

The scheme is effectively a loan and you pay monthly amounts and at the end they offer you the chance to buy the bike. Fine, got my head round that, but does anyone know what they normally charge to make it yours?

 

Is it a percentage? How do they work it out? Is it just a discretionary amount? Obviously it would be pointless if what they charge you is anything like the amount you haven't been taxed.

 

Just wondered if someone on here has done it recently or administers their company's scheme?

[sir roger]

Daughter's boyfriend did it & got 2 bikes for the pair of them. I think the way he explained it to me was that he pays the set price for the bikes over a fixed period ( I think he chose 12 months ) but the £100 a month or so he pays isn't taxed, so he saves £25 per month off his tax bill. At the end of the year the bikes are theirs.

[Salou]

I can't remember how they work it out but I've done it myself and at the end of the 12 months I remember paying a lump sum of 40 quid. I paid 15 quid a month for 12 months. So a total of £220. The bike itself to buy in the shop on it's own was 300 so I saved 80 quid. Don't know how it was worked out or anything!

[Sweeney287]

I made my last payment in my May salary so am waiting to see what happens.

 

I have read that some companies ask you to pay them a nominal fee to formally make the bike yours but I have yet to hear anything.

 

I borrowed £600 and paid £50 per month back so actually wonder if they will ask for anything, but saved me over £100 and have a lovely bike to show for it.

 

Encouraged a few colleagues to do it this year and they now have their bikes. It's a no brainer for me.

[RJ Fan club]

As I say I'd be interested to know what they asked for?

 

If I spank £500 or so I'd stand to save £150 or whatever, but I suppose I would want to be left with a similar payment. I'm sure it would be a nominal amount. Just wondered if some had a ball park or if there was a formula they use.

 

I'd live with £40 notes like.

[celeryBADboy]

can this be explained in laymans terms please.

[Bjornebye]

can this be explained in laymans terms please.

 

It is

[General Dryness]

can this be explained in laymans terms please.

 

In simple terms, "Simon, stay away from this."

 

It'll soon develop into an epic where you didn't make the payments because some bloke in the pub told you that you didn't have to, and now you're going to kill someone because the baylifts came round and took your bike.

[RJ Fan club]

can this be explained in laymans terms please.

 

You ask to borrow the money from work to buy a bike. They give you a voucher, you then buy the new bike.

 

Work take a monthly amount out of your wages for 1 year, but they don't take a 1/12th of the amount each month, they take it before you've been charged tax.

 

So in effect you pay for the bike because you've paid before you've been taxed. So you pay less tax over the year.

 

Basically if you pay 20% tax, then you'll save 20% overall. Except as I say you have to pay a one off end charge to 'purchase' the bike, so it's not exactly 20% if you're a lower rate tax payer.

 

*puts on worries face*

 

Cue Tarmac tax quips .

[Brodie]

I did it a few years ago, paid about £35 a month for a year, effectively paying for bike minus tax.

 

At the end my discretionary payment was another £35 - great deal!

[Remmie]

I've done it and one thing I will warn you on is that there is no point in going when the bikes are on sale, because if you use a cyclescheme voucher they will only charge RRP. My bike was RRP £500 on Sale for £400 but I had to use the voucher for £500 as they said they already lose too much from cyclescheme so have to charge the full £500 RRP. Still, it worked out as something like £340 via the scheme once you factor out tax so still cheaper and easy to pay off over twelve months. My particular scheme offered me the option of buying it outright after 12 months for 18% of RRP or pay something tiny like £3 a month for the next 18 months so I went for that as it was near Christmas and I was tight for money.

[Phoenix]

The employers sets the amount at the end to buy the bike. There is no set criteria for the amount or compulsion to buy the bike at the end if i remember and thats why mine wouldnt sign upto the scheme.

[Champ]

The employers sets the amount at the end to buy the bike. There is no set criteria for the amount or compulsion to buy the bike at the end if i remember and thats why mine wouldnt sign upto the scheme.

 

Best way to find out is to email the team that runs the scheme at your workplace. Like others on here the final sum for me was minimal

[Ezekiel 25:17]

I've done it twice and they've never charged me anything above the normal payments over the cost of the bike loan, staraaaange.

[Paulie Dangerously]

Is it just me or are those collapsible food down bikes really, really, really gay ?

[VladimirIlyich]

Is it just me or are those collapsible food down bikes really' date=' really, really gay ?[/quote']

 

More beardie,leather patch armed,pipe smoking liberal types for me.

[Champ]

More beardie,leather patch armed,pipe smoking liberal types for me.

 

Same. Nerdy, geeky kind of a thing. Mostly men. Hmmmm...............

[VladimirIlyich]

 

Same. Nerdy' date=' geeky kind of a thing. Mostly men. Hmmmm...............[/quote']

 

They dont look like they do much for fitness but are very practical and environmentally friendly.

[Ezekiel 25:17]

Bike Hipsters, fold up bike with a typewriter in the basket.