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Hi
As obvious as this may be I just cant find a clear answer online
My employer does the "cheap bike thing" but Im just not sold on it 100% yet
So I buy a new bike and get it cheap before tax is deducted - ok so far so good - but as I am on a career average pension how can I factor this in as well if my salary is now reduced for the year Im paying off the bike?
It is likely that my new bike will be bought from a company who stiff you with a £100 admin charge - which is nice - but if I then lose out when I retire it looks like a bum deal all round
Can anyone give me a useful answer on what buying a bike through this scheme does to my pension please and is it worthwhile?
Cheers
Could you sue for loss of earnings?
Best people to ask are your pension advisors/HR
Your Salary is/should be the same but you will need your pension people to confirm that STW don't know the exact rules of your scheme..
You deduct the cost of the bike from it, you still earn the same amount but you use some of it up early.
The bikes you will be looking at are normally at full RRP, the scheme works best if the bike you want is available, costs the 1k and you are a higher rate tax payer. If not it's just an interest free loan as the main perk.
If you can find a bike you want at a good price on offer or your LBS is willing to deal an interest free CC is/could be as good an option.
Is your career average earning calculated on the Gross pay before any deductions?
I'd have thought so. Would be very odd to calculate a final/average salary pension on net salary. Deductions for season ticket loans, give as you earn, childcare vouchers, student loans and so on would have an impact otherwise.