Ride to Work scheme

[mlocke]

Hey guys

I reckon one or two of you must have used this so thought I would ask for some first hand advice.

My work are introducing this shortly so I may use it at some point. I think there are various ways that organiations van introduce this and different rules that may apply.

Anyone got any info / questions that should be raised in the meeting?

Cheers

Locky

[Will]

Companies either use a 3rd party who administer the scheme or do it themselves. The advantage of using a 3rd party is that it makes it easy to set up, and disadvantages are that you'll have less control, they'll take a cut, and may restrict your choice of bike shop. The arguments obviously switch round if you set up your own scheme. From the employees' perspective a company-administered scheme is probably preferable (assuming they maximise the benefits for the employee). Although it's all good really as it will mean a higher-rate taxpayer will get a bike for around half-price

Setting up your own scheme is actually pretty simple. There is info on the IR site. It's recommended that you agree the details of the scheme with your particular IR office in advance just to avoid any awkward questions later. The value of the loan also needs to be taken account, and if I remember rightly, any amount over £1,000 will require companies to set up credit arrangements. For that reason companies have tended to cap schemes at £1,000. We used to offer £1,5000 but reduced it to £1,000 when the credit rule was introduced.

[mrP(Boonen)VT]

My company (after much lobbying pressure) has introduced the Bike to Work Scheme and I was involved in the set up and subsequent sale of bikes.
There are variations, but the basic principle is that the employer purchases the bicycle, then you make lease payments of a set amount over a set period. Throughout this period the bicycle is technically company property. At the end of the period the company can then give you the option of purchase (usually a nominal amount - 10% of the original cost for example) and you then own the bike, or they can take it back - which obviously they don't want to do!! The main benefit to employees is that the lease payments are deducted from salary before NI and tax are taken, so effectively a saving of approximately 30% on net cost to a basic rate taxpayer (more for higher rate).
Your employer also saves on employer's NI cont's.
My company linked up with a company called Wheelies, others are through Halfords, and some let you choose.
You can also include accessories if they comply with the rules i.e. they have reflective bits on them or are safety items.
My own example was a Specialized Sirrus together with blackburn rechargeable lights, rear light, bar bag and panniers. Total was £900. I am making 18 payments of £47.40, with a purchase payment of £47.40 (coincidentally the same as the total spend), but actual net cost will be £554.80

Guru P

[Snoop Doug]

BT won't introduce this despite persistent pressure from employees, no fair

It's a great scheme

[Antloony]

[quote="Snoop Doug"]BT won't introduce this despite persistent pressure from employees, no fair

It's a great scheme

[mrP(Boonen)VT]

I kept up the pressure, and they said there was no demand, and eventually they did a survey to gauge demand and discovered that there were a lot of people out there wanting a current up to date bike to ride to work.

After the last launch, I counted 15 shiny new bikes in the stands. I know that's not huge in the grand scheme of things, but to get 15 people out of cars to my mind is a success.

keep at it.

Guru P