Author Topic: Cycle to Work Scheme  (Read 982 times)

Cycle to Work Scheme
« on: 25 January, 2022, 05:39:18 pm »
Good evening , I work for Network rail and we currently have the cycle scheme with Cycle Solutions as the supplier.
The limit has been £1000 since I purchased my first proper road bike in 2010.
I am trying to get information on what other employers use as a provider and the limits .
I understand that some have no limit and others allow you to top up your voucher.
Anyone have experience with the more generous limits with their employer ?
£1000 now certainly doesnt get you anything like the quality of frame and components that it did in 2010.
thanks for anyone taking time to reply
"If I hadn't seen such riches I could live with being poor."  T. Booth.

Re: CYCLE TO WORK SCHEME
« Reply #1 on: 25 January, 2022, 05:50:15 pm »
Good evening , I work for Network rail and we currently have the cycle scheme with Cycle Solutions as the supplier.
The limit has been £1000 since I purchased my first proper road bike in 2010.
I am trying to get information on what other employers use as a provider and the limits .
I understand that some have no limit and others allow you to top up your voucher.
Anyone have experience with the more generous limits with their employer ?
£1000 now certainly doesnt get you anything like the quality of frame and components that it did in 2010.
thanks for anyone taking time to reply
My experience is that it depends on the relationship you have with the dealer supplying the bike.
In my case they were happy to add an additional half of what the limit was, for components I wanted fitted, without any evidence of this on the official paperwork.
ETA - Although, for warranty purposes, I had paperwork covering the full cost of the bike plus the additional components.
ETFA - I should add that this was with an LBC, as opposed to any sort of chain outfit, with policys etc. I'm sure that factor helped.

Re: CYCLE TO WORK SCHEME
« Reply #2 on: 25 January, 2022, 05:55:46 pm »
we have had several different scheme providers including Halfords and Evans who were both flexible in that way according to people I have communicated with at work .Cycle Solutions flatly refused when I asked them myself .
We are looking to put some pressure on the powers that be to change their policy for the next scheme ,
thanks for your input. :thumbsup:
"If I hadn't seen such riches I could live with being poor."  T. Booth.

Re: CYCLE TO WORK SCHEME
« Reply #3 on: 25 January, 2022, 06:37:23 pm »
Cycle Solutions like other cycle to work scheme providers are now able to increase the limit of £1000 to what ever the employer wants - even in theory unlimited (but this depends on your salary obviously, and there are rules about the minimum that salary sacrifice schemes leave you each month as well). This is because the scheme changed in 2019.

Cycle Solutions Cycle to Work Scheme

My company still had the £1000 limit last year via Cyclescheme.co.uk.

Although I don't need a bike at the moment I wrote an email to our HR dept explaining that the scheme had changed and the reasons for it.

Bikes more expensive, effect of inflation over the 20yrs the £1000 limit had been in place etc
Electric Bikes - ideal for commuting but can be a lot more than £1000
A £1000 limit is potentially discriminatory to anyone requiring a specially adapted bike.

I also pointed out that there are savings for the employer as well as they don't pay NI on the amount in the Salary Sacrifice scheme - so more expensive bikes for the employee generate greater NI savings for the employer.

It took a couple of months but they now have increased it to £3500 - all they have to do is contact the scheme provider and let them know the limit they want to have, I did suggest it should be unlimited but it's still a big increase on what it was.

I'd suggest trying this approach and see how you get on - I work for a reasonably large company but no where near the size of Network Rail so no idea how responsive your HR dept might be.

It may well be the case that your employer hasn't look at the scheme for years and is not aware of the changes and just needs a prompt.



Re: CYCLE TO WORK SCHEME
« Reply #4 on: 25 January, 2022, 06:58:51 pm »
thanks for that , very interesting . one of the problems we are also having is actually contacting the person who actually makes the descisions regarding the scheme , Its a very big company and im afraid it doesnt know its arse from its elbow a lot of the time . Maybe an e-mail right to the top might be be worth a go .
"If I hadn't seen such riches I could live with being poor."  T. Booth.

Re: Cycle to Work Scheme
« Reply #5 on: 25 January, 2022, 07:19:54 pm »
I successfully managed to influence a large corporate to adopt the Cycle to Work scheme through a little skulduggery.

I got hold of the list of people who cycled to head office and once we'd identified a suitable target (who could influence HR) I engaged in a charm offensive with his PA. She managed to line up a half hour meeting with him where we pitched the idea. Obviously he was enthusiastic and once a couple of system issues were resolved (new HR system which enabled salary sacrifice on a reducing balance) the C2W scheme was rolled out in relatively short order.

It's not what you know .....
Rust never sleeps

gibbo

  • Riding for fun, cake and beer.
    • Boxford Bike Club
Re: Cycle to Work Scheme
« Reply #6 on: 26 January, 2022, 09:23:50 am »
I recently did my third C2W buy, but my first with my present company whose limit is £10K and not restricted to any particular supplier.

Re: Cycle to Work Scheme
« Reply #7 on: 26 January, 2022, 09:24:44 am »
Good evening , I work for Network rail and we currently have the cycle scheme with Cycle Solutions as the supplier.
The limit has been £1000 since I purchased my first proper road bike in 2010.
I am trying to get information on what other employers use as a provider and the limits .
I understand that some have no limit and others allow you to top up your voucher.
Anyone have experience with the more generous limits with their employer ?
£1000 now certainly doesnt get you anything like the quality of frame and components that it did in 2010.
thanks for anyone taking time to reply

I don't think any schemes allow you to top up the voucher, what arrangements you may come to with your local bike shop are another matter. Just remember that the bike is still technically owned by the company, when you are part funding it with additional money from outside the scheme. They have no obligation under the scheme t hand it over to you at the end, although of course your employer is probably not going to want to take possession of many bicycles each year.

In any case the best way to get a worthwhile bike is to seek to get the limit increased as discussed by other posters, rather than topping up.

Eddington  109miles

Re: Cycle to Work Scheme
« Reply #8 on: 26 January, 2022, 11:39:52 am »
I worked at a large UK software company that ran it's own scheme.

They had a credit licence and you could have up to £7500 over 3 years on the same tax and NI perks as the usual scheme.  It helped the head accountant was a cyclist and the limit was generally based on what exotic carbon he was looking at.

Now I'm at a global consultancy and we are subject to the £1000 limit, though an increase is in the works so people can buy e-bikes.
Somewhat of a professional tea drinker.


Re: Cycle to Work Scheme
« Reply #9 on: 26 January, 2022, 11:56:22 am »
I worked at a large UK software company that ran it's own scheme.

They had a credit licence and you could have up to £7500 over 3 years on the same tax and NI perks as the usual scheme.  It helped the head accountant was a cyclist and the limit was generally based on what exotic carbon he was looking at.

Now I'm at a global consultancy and we are subject to the £1000 limit, though an increase is in the works so people can buy e-bikes.
My understanding is that if a company operates it's own scheme it's still subject to the same £1,000 limit unless it has a credit license, but if they use a provider then that requirement is theirs and they all have the appropriate licenses. 
If it's possible, getting a company to administer their own is always better, you're effectively going into the shop with cash, rather than a voucher worth considerably less to the retailer than the face value. 

Re: Cycle to Work Scheme
« Reply #10 on: 26 January, 2022, 12:07:47 pm »
Mr recollection of the numbers when I was at Big Corp was that the scheme provider would take a £135 cut on a £1000 voucher.
Rust never sleeps

Re: Cycle to Work Scheme
« Reply #11 on: 26 January, 2022, 09:04:47 pm »
My employer uses the Halfords scheme - current limits are £1500 for non-assisted bikes, or £2500 for e-bikes. I've never bothered using the scheme - I did look into it once, but didn't like the idea of not actually owning the bike for several years, and the savings for me were negligible.

cygnet

  • I'm part of the association
Re: Cycle to Work Scheme
« Reply #12 on: 26 January, 2022, 10:18:04 pm »
My employer uses the Halfords scheme - current limits are £1500 for non-assisted bikes, or £2500 for e-bikes. I've never bothered using the scheme - I did look into it once, but didn't like the idea of not actually owning the bike for several years, and the savings for me were negligible.

It's been a long time since I looked at this, but it reminds me that  the work company's chosen provider never answered my question about frame guarantee and transfer of ownership. Also repayment terms and depreciation rate were initially based on home computing depreciation rates which they've since fudged further but never satisfactorily explained why or how..

It really blows my mind that there is still an annual tax benefit for using cars, but the cycle scheme is effectively hire purchase without the benefits of being the original owner.

Reasonably Inconsiderate