[Closed] Cylce to work scheme, just how does it work.

Payment is taken from your salary before tax, so you save the tax you would have paid on that amount.

Just in case that's not clear.......if you pay income tax at 25%, you've only paid 12 x 57ish... Or at 40%....you can do the maths....that's the benefit....what you would have paid in tax to mr cameron, has gone towards your own bike instead!

I think the bit you didn't follow is how to "remove" the vat.

£851.04 + 17.5% VAT = £999.97

1.175 * net = gross

So you divide by 1.175 (not multiply be 0.825 as you have done)

I got a Genesis Day One Cross, a Joystick light and some SPD's = £705
They took 12 x £50 from my gross pay = £600.
I don't get it either.

EDIT - Yes I do, I don't pay VAT on it either, right?

Add vat = net price*1.175
Remove vat = gross price/1.175 = gross price*0.851

Hence your £851.
Simples 🙂

*old 17.5% vat rate of course

Thanks for the replies. To me the C2W with cycle scheme still seems like a great deal, despite some bad press recently. I reckon the £1k bike has cost me £734 in real terms.

Thanks

MM

I' bought a bike 12 months ago on the C2W scheme for £1000.

No you didn't.

Your employer bought a bike twelve months ago and rented it to you.

Have you got to the part where you pay a final value fee to own the bike, so for example on my Tricross that I've spent the last 12 months paying £70 a month for I have to now pay £202 to actually own the bike?
Cyclescheme, what a ****ing waste of time.

I think I just carry on renting mine for £0 a month for the next 2 years, until it's virtually worthless.

I think thats what i'm going to have to do as well. Still a bit cheesed at the final value bit.

However, at least you can take out another scheme whilst doing the 2 year part.