Cycle To Work Schemes

Hello there.

Does anyone know much about the Cycle To Work Schemes ?

Are there good ones, not so good ones etc.

I am trying to get my company to adopt one.

Thanks in advance.

 

My company runs a green travel scheme. Car parking on site is restricted and those who are eligible but choose not to take the parking slot receive a cash benefit in their monthly payroll (taxable of course, but I can't remember exactly how much). This applies not only to those who cycle to work but also anyone using a motorcycle or car sharing. The rules for eligibility are fairly complex, but as a rule of thumb anyone within walking distance and without a nursery/school run is not eligible for a parking space or the green travel incentive.

There is also an "allowance" of something like a day a month on average where you are allowed to bring in a car to work notwithstanding that you are on the green travel scheme.

Take up of the scheme is, I believe, fairly limited.

 

I've read the details ref the NHS one, which my wife can apply for.
In summary, the deal is something like this:
- Buy upto 2 bikes with a maximum cost of £1000
- If your employer is VAT registered, deduct VAT
- The payment comes from your gross pay, i.e. you get full tax relief
- It's assumed that you are actually leasing the bike from your employer, and that at the end (if you so chose) you buy the bike post depreciation for a nominal amount (i.e. pretty much bugger all)
- The costs are then split over 13 monthly payments

So for example, if you buy a £500, deduct VAT, then your highest rate of tax. e.g. overall 40%, leaving £300 to pay. Split that over 13 months and your cost per month is around £25.

We're thinking of joining my wife's scheme shortly. At the moment I'm running around on some really tatty old Trek to see how I feel about being back on a bike again.

 

Likewise !

I have just built up a gorgeous Claud Butler for my girlie, it is better than mine !