CityCyclingEdinburgh Forum » Topic: Cycle to work scheme

CityCyclingEdinburgh Forum » Topic: Cycle to work scheme - is it worth it? http://citycyclingedinburgh.info/bbpress/ CityCyclingEdinburgh Forum » Topic: Cycle to work scheme - is it worth it? en Wed, 15 Apr 2026 21:38:25 +0000 deckard112 on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864&page=2#post-213689 Tue, 08 Mar 2016 15:13:06 +0000 deckard112 213689@http://citycyclingedinburgh.info/bbpress/ Interesting to read different experiences of the scheme here. I'm a massive fan and now on my second bike with it. My employer uses Cyclescheme. First time I went for a £450 voucher to buy a hardtail mtb for bombing around on with the kids. That finished last year and my employer is 'gifting' me the bike based on residual value (which is determined by HMRC) although I'll pay a benefit in kind tax on the 'gift' value. It's only working out at £6 tax for the whole year! Got my second bike last year as my commuter needed replaced so went for the top voucher at £1000. I bought a bike from Decathlon which had full Shimano Ultegra groupset (alone cost £900 when first released) so already a good deal but with the tax saving it's just ridiculously decent value. Stickman on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864&page=2#post-213649 Tue, 08 Mar 2016 01:31:54 +0000 Stickman 213649@http://citycyclingedinburgh.info/bbpress/ Our scheme is with Halfords but they will source nearly any bike for you, so not restricted to their own brands. Paid up over one year and ownership transfers over at that time. No final payment to buy the bike, so counts as a benefit-in-kind you get taxed on. It's probably marginally worth it if you want this year's model of a bike, but sale savings can be just as much. Snowy on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864&page=2#post-213648 Tue, 08 Mar 2016 01:12:23 +0000 Snowy 213648@http://citycyclingedinburgh.info/bbpress/ My employer requires the bike to be paid off over 3 years but it's 6 years until you can re-enter our scheme, I think. However most bikes if genuinely used year-round for commuting are going to be in a very 'used' state by that point. My take on it was that if you have the cash, and want a wider choice, you are better off looking for a bike in a sale. If you prefer to make a small monthly payment that you won't really notice, albeit with slightly restricted choice, and don't mind the tie-in, then CTW can be good too. newtoit on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864&page=2#post-213613 Mon, 07 Mar 2016 17:19:21 +0000 newtoit 213613@http://citycyclingedinburgh.info/bbpress/ Cycle to work scheme sounds great but the application isn't as good as it could be. I never ended up using the C2W scheme for the following reasons: - Ours is the Halfords one, who didn't have any bikes I wanted. Using the LBS network meant I'd have to pay list price, negating any savings from the scheme. - Retention of title to the bike lasts 3 years and I couldn't guarantee I'd still be in the same place 3 years later (being on a training contract). It also grates paying the full price of the bike over a year but not owning it until 3years. - The saving wasn't that great once you factor in having to buy it for a "fair market value" at the end of the 3 years. Looks to be more worthwhile if you're a higher rate taxpayer though. No idea how you arrive at a fair value of a bike though... I know HMRC issued guidance but not convinced by the rationale at all. In the end I ended up getting mine in the EBC summer sale at 15% off, so maybe paying £20 more than under the scheme - meant I got the bike I wanted and didn't have any faff with waiting for vouchers or working out how much I'd need to take. Saying that, if I was to go for an n+1 down the line then I may consider it depending on circumstances. Ed1 on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864&page=2#post-213608 Mon, 07 Mar 2016 14:49:10 +0000 Ed1 213608@http://citycyclingedinburgh.info/bbpress/ I think cigarette scheme is the next one planned… The saving on cycle to work scheme look good. I bought my 2015 revelution country explorer used, if had used cyle to work scheme would have cost about the same new, but there was none in stock in my size, and also was looking for used bike as was trying to spend less. My first bike was new in the first year had it, had new deralour front and back, 2 new rear cog sets , new front brake calber, many chains, main brake blocks so could not see much benefit in a new bike. I tried to buy several used Galaxies but they were already sold or could not be sold so eventually paid a little more for a used Explorer. If wanting a new bike then the cycle scheme seems good. Working in large public sector organization would have some reservation about HR taking the correct amounts from wages as sometimes overtime or other parts of pays not quite right but other than this if wanted new would be good. However can’t really think of many benefits of a new bike would be a nuisance having to worry about scrapes which if was new would be hard not to. Dave on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864&page=2#post-213586 Mon, 07 Mar 2016 11:23:57 +0000 Dave 213586@http://citycyclingedinburgh.info/bbpress/ Let me know if they get on to HouseScheme... Murun Buchstansangur on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864&page=2#post-213477 Fri, 04 Mar 2016 16:44:58 +0000 Murun Buchstansangur 213477@http://citycyclingedinburgh.info/bbpress/ So Cyclescheme is my firm's Bike to Work scheme provider. Got spammed today with their latest wheeze - Phonescheme "Phonescheme enables you to enjoy the latest mobiles, tax-free. Your employer pays for the phone and then recovers the cost from your gross salary over a 12 month period. Paying via salary sacrifice enables you to save up to 42% on Income Tax and National Insurance, making a wide range of phones even more affordable. Your employer will also save up to 13.8% in National Insurance Contributions." <a href="https://www.phonescheme.co.uk/how-it-works" rel="nofollow">https://www.phonescheme.co.uk/how-it-works</a> Not sure how this is possible when Bike to Work only allows bikes and safety equipment to be bought - luxuries like GPS are ruled out (I've checked) Hope they don't end up nerfing the whole Bike to Work scheme... dg145 on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864&page=2#post-154908 Tue, 27 May 2014 20:31:16 +0000 dg145 154908@http://citycyclingedinburgh.info/bbpress/ I got my most recent bike from EBC on their Bike to Work Scheme. I worked out that by the time I've repaid my employer (with tax advantage) and then made the final 'market value' payment to own the bike I won't have saved very much. But ... I will have made some saving, albeit a small one, and I won't have had to fork out a one-off payment to buy the bike. As someone else has mentioned there's probably little financial benefit over buying on interest free credit. For me, I prefer the idea of paying back my employer, rather than a credit company. It also gives me an option to buy or not to buy at the end of the hire period. The admin of setting it up isn't very onerous so there's not really too much to lose - even if there appears less now to gain. KarenJS on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864&page=2#post-154907 Tue, 27 May 2014 19:57:36 +0000 KarenJS 154907@http://citycyclingedinburgh.info/bbpress/ @acsimpson I'm in the same boat, my manager wants to implement a cycle scheme, but I'm the only one likely to use it in the near future and will have to do the admin, so I am in a position to influence. I was thinking of going for the EBC bike to work as you can get sale price bikes and it looks pretty easy to set up. However, I'm not sure that I will actually want to take it up as it looks like minimal savings for someone who doesn't earn the higher rate of tax and doesn't want a £1k bike. LivM on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864&page=2#post-154904 Tue, 27 May 2014 19:26:22 +0000 LivM 154904@http://citycyclingedinburgh.info/bbpress/ Several years ago, I got a bike to work bike. Paid for it over a year, then had 2 years extended loan period before eventually I was "given" the bike by my employer as a benefit in kind,p. I then had to pay tax on this benefit of course, but because it was a 3 year old bike the fair market value was down to 17% of the original cost (I think), and so I had to pay tax on 25% of that which was negligible. And even then I "paid" by them adjusting my tax code for a yea, so it worked out very painless. I wouldn't do it again though: too much seems to be uncertain now. SRD on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864&page=2#post-154903 Tue, 27 May 2014 18:36:05 +0000 SRD 154903@http://citycyclingedinburgh.info/bbpress/ On twitter just now: @paullewismoney: Anyone kept out of Cycle to Work scheme by low pay - please email <a href="mailto:moneybox@bbc.co.uk">moneybox@bbc.co.uk</a> acsimpson on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864&page=2#post-154897 Tue, 27 May 2014 16:49:29 +0000 acsimpson 154897@http://citycyclingedinburgh.info/bbpress/ DaveC I noticed it on their Q&A page here; <a href="https://www.cyclescheme.co.uk/employers/employer-faqs#/employers/employer-faqs/i-already-own-a-bike,-can-i-obtain-just-safety-">https://www.cyclescheme.co.uk/employers/employer-faqs#/employers/employer-faqs/i-already-own-a-bike,-can-i-obtain-just-safety-</a> Curiously the URL is entitled employers but the link is from the customer's getting a bike page. Does anyone have any experience of the EBC Bike to Work offering? or other LBS(ish) options where cyclescheme wouldn't be taking a cut? My current employer doesn't have a scheme so provided I can talk the boss into letting me set one up I could theoretically choose anywhere. kaputnik on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864&page=2#post-154896 Tue, 27 May 2014 16:48:01 +0000 kaputnik 154896@http://citycyclingedinburgh.info/bbpress/ Personally I'd buy a previous year's model in a sale on an interest free credit card. You're likely to get more bike for your money and can easily find a 12 month (or more) interest free period. Seconded. This is what I did. So long as you're disciplined about the payments it's a good way to get the bike you want at a good price. And it's your bike, not some scheme's. DaveC on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864&page=2#post-154895 Tue, 27 May 2014 16:25:58 +0000 DaveC 154895@http://citycyclingedinburgh.info/bbpress/ As I understand it Cycleschee does not allow the sale of bicycle parts. So a fraome and forks are not allowed. Perhaps there is some literature I have missed? Buying parts would be good as I could change the worn out drive trains annually instead of having to buy it post income tax. ianfieldhouse on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864&page=2#post-154892 Tue, 27 May 2014 16:08:11 +0000 ianfieldhouse 154892@http://citycyclingedinburgh.info/bbpress/ I don't think it's worth it anymore unless your a higher rate tax payer. Personally I'd buy a previous year's model in a sale on an interest free credit card. You're likely to get more bike for your money and can easily find a 12 month (or more) interest free period. acsimpson on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864&page=2#post-154860 Tue, 27 May 2014 12:59:38 +0000 acsimpson 154860@http://citycyclingedinburgh.info/bbpress/ There are several different schemes out there with some better than others. I bought mine through my old employer who used Halfords as the supplier which seems to have worked slightly differently to the cyclescheme option. 1) Between me choosing the bike and buying (4 months) the bike was put in the sale. There was no problem with me buying it at the reduced price but I did find myself having to spend several hundred pounds on accessories in bikehut which wasn't a simple process. 2) At the end of the scheme my employer gave me the bike which meant I was liable to pay tax on the value of the bike. Sadly it was a one year scheme so I was paying tax on £250. The maths worked out as Headline cost £1000 (Halfords also added 10% extra in accessories) Cost after tax and NI deductions (what I paid) £680 Tax pad at end of scheme £50 So I paid £730 for £1100 worth of bike and accessories. which seems like good value. A couple of other notes on the cyclescheme one: 1) I think the full price limitation is only enforced at shop level so it may be possible to persuade a shop to sell you a 40% discounted bike for a 25% discount and still use the voucher for double savings. 2) According to the cyclescheme website you can use a voucher to buy accessories or safety equipment so if you're not in the market for a £1000 bike you could buy a £1000 frame or wheelset instead. Or alternatively buy whatever part you expect to wear out within the next year and then post them back with no further costs at the end of the year. My final comment wont be relevant to most people but the £1000 limit is a credit licence restriction so if you're lucky enough to work for an employer with a credit licence there is theoretically no limit to how much you can spend. wishicouldgofaster on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864&page=2#post-154853 Tue, 27 May 2014 12:15:32 +0000 wishicouldgofaster 154853@http://citycyclingedinburgh.info/bbpress/ Due to our work scheme making you go through hoops unless you use Halfords I don't bother as the saving is neglgible and doesn't compensate for the hashy build that Halfords tend to do. I just usually wait until Edinburgh bike shop have a sale and then get a bike that I know has been built properly. jdanielp on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864#post-154850 Tue, 27 May 2014 12:06:27 +0000 jdanielp 154850@http://citycyclingedinburgh.info/bbpress/ Hmm, I'm beginning to regret not buying a new bike in the winter sales instead of waiting for Heriot-Watt's fabled cycle to work scheme (possibly coming in June). Roibeard on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864#post-154846 Tue, 27 May 2014 11:53:37 +0000 Roibeard 154846@http://citycyclingedinburgh.info/bbpress/ Part of the reason for the full price bikes, is that the scheme operators take 10% off the top (i.e. it's only worth a maximum of £900 to the bike shop). Given that they're already taking a 10% cut, they're not likely to discount further. Robert jdanielp on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864#post-154837 Tue, 27 May 2014 11:35:58 +0000 jdanielp 154837@http://citycyclingedinburgh.info/bbpress/ * currently the cycle scheme only allows purchases of full price bikes. ah... DaveC on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864#post-154831 Tue, 27 May 2014 11:20:51 +0000 DaveC 154831@http://citycyclingedinburgh.info/bbpress/ Here is my tuppence worth. Cotic >X< £1000 @ 40% saving = £600 - I paid ~£75 per month before tax. After a year the drivetarin had worn out so off came the Sore mech, chainset, cassette and chain and on went the new triple chainset (£80) mech (£18) chain (£15) & cassette (£25). Total = ~£140. I chose the 3 year rental option over return or buy at ~£250. Cost me ~£70 I recall and after three years its mine. I've replaced the cassette and chain countless times (as I have three bikes and do them all ~twice a year). I also bought new tyres and mudguards as the OEM tyres were akin to wafer thin mints in the pucture department. Since then I've not chosen to buy through the scheme because I, a) don't want another bike under a £1000, b) want a bike over £1000 c) buying out of scheme means I can buy at sale price and take the shop's own 10 month interest free credit. Now I have a decent number of frames & forks, I think I'll be just upgrading components as I go/wear them out. This might not be for you KarenJS but it worked for me. Depending on what bike and size you want there are some good deals to be had. Example. Spa Cycles has a £1500 RRP Dawes Super Galaxy selling at £980 curretly in 48 & 53 inch sizes only. Considering I bought a S/H Super Galaxy ~5 years old for £600 a few years ago, this appears to be a good deal. If you didn't have the cash, a zero percent credit card for 18 months would work out at just under £50 per month. Buying a full price* bike at £1000 would set you back ~£73 per month for a year. There are also others for as little as £450! <a href="http://www.spacycles.co.uk/offers.php" rel="nofollow">http://www.spacycles.co.uk/offers.php</a> * currently the cycle scheme only allows purchases of full price bikes. jdanielp on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864#post-154816 Tue, 27 May 2014 10:46:48 +0000 jdanielp 154816@http://citycyclingedinburgh.info/bbpress/ I had been assuming that a VAT saving is made as part of the scheme as well as the tax, but after a brief Google it would seem that that incentive was removed in 2012... If a bicycle is already reduced then it would presumably still be possible to make an extra saving though? It is just not that great for buying a bike at its full RRP... PS on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864#post-154815 Tue, 27 May 2014 10:33:26 +0000 PS 154815@http://citycyclingedinburgh.info/bbpress/ @Baldcyclist That is an impressive wear out rate! Because of the rate I go through bits I probably wouldn't do Cyclescheme again But presumably had you bought all this stuff out of your own pocket you would still have worn out the parts at the same rate? At least Cyclescheme will have allowed you to spread the (reduced) cost over time. Baldcyclist on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864#post-154810 Tue, 27 May 2014 10:14:03 +0000 Baldcyclist 154810@http://citycyclingedinburgh.info/bbpress/ "What happened to the frame, @Baldcyclist? ;-)" It's broken too, and will be replaced this week. It's just another bit. "You could always hang onto the old worn out stuff and hand that back too. I doubt your employer would care." That's probably what I will do, as bits wear out put them back on original frame. I did think of doing a photo slide show of my changing bike over a year, but it's too far removed from the original bike to make any sense now. PS on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864#post-154805 Tue, 27 May 2014 09:55:28 +0000 PS 154805@http://citycyclingedinburgh.info/bbpress/ The problem I have is that after 2 years only the rear mech,handlebars and shifters are left of the original bike What happened to the frame, @Baldcyclist? ;-) You could always hang onto the old worn out stuff and hand that back too. I doubt your employer would care... I've had two bikes through the scheme and it is a good deal for higher rate taxpayers (we have to pay the bullet payment after 3 years, so a higher rate taxpayer gets a £1k bike for a take-home pay reduction of £650 spread over 12 months then a bullet payment of £120 after 3 years - £770 spread over a fair period of time. Basic rate taxpayer would have a take-home pay reduction of £760 plus the £120 - £880 spread over time.) Like Dave says, it reduces your negotiating power with the shop, but for the majority of punters who are going to Halfords to get a £1k Boardman, that negotiating power is probably negligible anyway. cc on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864#post-154801 Tue, 27 May 2014 09:30:23 +0000 cc 154801@http://citycyclingedinburgh.info/bbpress/ @Dave What would be the best thing to do about bike to work? We could do that :-) SRD on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864#post-154800 Tue, 27 May 2014 09:20:40 +0000 SRD 154800@http://citycyclingedinburgh.info/bbpress/ Sorry for being dense Insto, but why is it regressive? Do you mean regressive in the sense that it benefits higher tax payers more? Dave on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864#post-154797 Tue, 27 May 2014 08:21:15 +0000 Dave 154797@http://citycyclingedinburgh.info/bbpress/ What would the People's Democratic Republic of Scotland do about bike to work, I wonder? Presumably it (along with all of the above) will be up for reconsideration in the new and improved Scotland 2.0 Instography on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864#post-154788 Mon, 26 May 2014 23:05:00 +0000 Instography 154788@http://citycyclingedinburgh.info/bbpress/ It's like all salary sacrifices - hugely regressive. Childcare vouchers, additional leave, health care, dental plans, pensions, etc. Dave on "Cycle to work scheme - is it worth it?" http://citycyclingedinburgh.info/bbpress/topic.php?id=12864#post-154785 Mon, 26 May 2014 22:49:13 +0000 Dave 154785@http://citycyclingedinburgh.info/bbpress/ The table of valuation is a bit odd really. I'd bite your hand off if you offered me a 12 month old £1k bike with average UK owner mileage for just £250! It's sad that they didn't just declare that the ownership of the bike was not a benefit in kind and have done with it. After all, the use of the bike (even though you're paying for it) *is* a taxable benefit, it's just that when they legislated the scheme originally, that benefit was specifically written out. Ultimately it's quite a regressive scheme so I'm not that fussed. If you earn £10k you don't save any tax at all, and you have to pay all the admin fees and hassle on top of the cost of your bike. It's not even available if you're on minimum wage and have to drive to work because public transport doesn't cater for your shifts (irony). On the other hand if you earn £150k+ you save over half the value and your accountant ensures that the question of ownership never arises...