bradfordbiking.co.uk

Thinking about buying a good new bike and its too expensive?
That’s just what I thought until I came across this website http://www.cyclescheme.co.uk

The idea is to get a tax free bike paid though work.
Each moth you will pay a set amount though you wage for 12 months.
During the 12 month period the bike will belong to employer, and it will be your responsibly to keep the bike safe and make sure its insured but you are free to use the bike outside of work. The only catch is that SHOULD try to ride into work as much as possible. After 12 months the bike is yours to do as you fee fit.
If you wish to buy a bike over the cost of £1000 your employer will needs to apply for an individual consumer credit license which costs £335 and lasts 5 years.
If you work for a company that can’t claim tax such as the NHS or a charity you can still save up to 33% and if you work for a company that can claim tax you can save up to 43% of the RRP of a bike.

To see you a break down on the costing and savings see below

At 43% Savings
Total cost of bike and accessories:
£1,500.00
VAT saving on bike and accessories (NB helmets are exempt from VAT):
£223.40
Net cost of bike and accessories:
£1,276.60
Income tax saving over hire period:
£280.85
NI saving over hire period:
£140.43
Final cost of bike & accessories:
£855.32
Total saving:**
£644.68
Gross monthly salary sacrifice, based on 12 month hire period:
£106.38
Net monthly salary sacrifice, based on 12 month hire period:
£71.28

At 33% Savings
Total cost of bike and accessories:
£1,500.00
VAT saving on bike and accessories (NB helmets are exempt from VAT):
£0.00
Net cost of bike and accessories:
£1,500.00
Income tax saving over hire period:
£330.00
NI saving over hire period:
£165.00
Final cost of bike & accessories:
£1,005.00
Total saving:**
£495.00
Gross monthly salary sacrifice, based on 12 month hire period:
£125.00
Net monthly salary sacrifice, based on 12 month hire period:
£83.75

Where I work we currently do not run this scheme but there are keen to adopt it. I do believe there have given it the go-ahead and its now a point of filling in the paper work.

So if anyone’s after a new bike or just after upgrade and don’t wish to pay though the nose for quality. I would suggest checking with your employer to see if they run the same scheme and if not try, to see if there will adopt it.

For those of you who don’t cycle or wish to start, this is a good place to start. For a lot of people there first bike is quite often a cheep bike. The only problem I find with this is a cheep bike does not sell you the idea of riding for well, as there often don’t feel nice to ride there unnecessarily heavy and you quite often have problems with the bike that should be happing. All these issues can quite easily put you off cycling.

So by going with this scheme you can get a good bike at a fraction of the cost.

For more information please see: http://www.cyclescheme.co.uk/employee,faqs.htm