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i'm trying to set this up at work but i just don't get it. i thought that you basically had the bike on hp from your employer and paid a bit back each month until it was yours but it seems not. the website talks about hiring the bike then placing a deposit at the end of the term to continue the hire ?
help please cos i don't understand.
You don't buy it on HP, you rent it from your employer who then may agree to sell it to you at the end of the hire period. The final sale value cannot be determined at the beginning of the agreement, but there are various tax considerations which may indicate the sort of price you will need to pay to satisfy HMRC.
http://www.cyclescheme.co.uk/employers/employer-faqs
I wouldn't bother unless your company is VAT registered and you are a higher rate tax payer. YMMV
so really, it may not work out any cheaper for you ?
I think it's had its day TBH. HMRC providing guidance on final sale values means that the days of paying a nominal £10 to take ownership are long gone. Add on the VAT payments, and it isn't the bargain that it once was.
I'm not complaining, too many folk took the piss with it, and there was bound to be a cracking down to prevent middle income IT managers adding to the bike collection every 18 months.
Because most shops only deal at full RRP with Cyclescheme vouchers, you lose any discount for a cash or card sale too - the savings just aren't there IMHO.
If however, your company can administer the scheme themselves, the bike shop discount is opened up again and the numbers may stack up.
Yeah pointless these days unless you extend the hire past the first year to avoid the 'market rate' purchase payment