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Re: Cycle 2 work scheme

12 Mar 2015, 16:55

dohnut wrote:
mrwhisper wrote:Hi, my cycle2work final payment is this week, does anybody know if i can apply for the cycleplus scheme straight after they have taken the payment?



How much is your final payment?, mine is coming up and I heard you have to pay up to 10% of the value of the bike so could be £100 for me.



it was 35 pound, just checked my payslip. that was on the halfords scheme though.

Re: Cycle 2 work scheme

13 Mar 2015, 01:43

richystran wrote:Things have changed, its a fee plus a percentage of the bikes value. It might be a £20 charge on a £1000 bike and then your tax code will be altered to get an extra £200 (fair second hand value) off you!

SO ON A £1000 BIKE YOU NOW WILL ONLY SAVE £70!


No, you pay £1 and you pay tax on the £200, you don't actually pay £200.

Re: Cycle 2 work scheme

12 Apr 2015, 21:39

Hi,

To save time by scrolling through this thread, I thought I'd just ask a few questions, regarding this scheme, straight up.

I am part time. Will this affect my application for cycleplus? What I mean is will my contract limit me to how much I will be given via a voucher? Ideally I am looking at a bike worth around £700.

Will the deductions be taken on a weekly basis?

Do I need to know what bike I want before making an application? The form on the website asks how much I want on the voucher.

Thanks.

Re: Cycle 2 work scheme

13 Apr 2015, 11:19

Part time...yes you're eligible

Best way is getting price beforehand

Weekly deductions

Re: Cycle 2 work scheme

13 Apr 2015, 18:56

spiderj wrote:Part time...yes you're eligible

Best way is getting price beforehand

Weekly deductions



Cheers.

Re: Cycle 2 work scheme

14 Apr 2015, 15:56

There are actually 2 very similar schemes but both have the same answers to your questions.

Cycle to work https://www.salary-plus.co.uk/ebgateway ... oWork.aspx

Who is eligible?
cycle2work is governed by the Department for Transport. In order to receive the Tax benefits resulting from a salary sacrifice arrangement you will need to be a UK taxpayer, who can benefit from the Tax efficiencies of the scheme.


What happens if I leave my job before I've finished paying for my bike?
Under the terms of the hire agreement you will agree to settle all outstanding monies before you leave. The outstanding balance will be deducted from your final net salary payment.


Cycle Plus https://www.salary-plus.co.uk/ebgateway ... ePlus.aspx

Who is eligible?
cycleplus is governed by the Department for Transport. In order to receive the Tax benefits resulting from a salary sacrifice arrangement you will need to be a UK taxpayer, who can benefit from the Tax efficiencies of the scheme.



What happens if I leave my job before I've finished paying for my bike?
Under the terms of the hire agreement you will agree to settle all outstanding monies before you leave. The outstanding balance will be deducted from your final net salary payment.

Re: Cycle 2 work scheme

16 May 2015, 22:50

dpn1983 wrote:Hi,

To save time by scrolling through this thread, I thought I'd just ask a few questions, regarding this scheme, straight up.

I am part time. Will this affect my application for cycleplus? What I mean is will my contract limit me to how much I will be given via a voucher? Ideally I am looking at a bike worth around £700.

Will the deductions be taken on a weekly basis?

Do I need to know what bike I want before making an application? The form on the website asks how much I want on the voucher.

Thanks.


It was about 4 years ago I done this.

If its still the same then there is different set amounts. You cants just ask for £186, it would have to be £200. Dont think you can add your own money to top it up. Halfords gave me an extra 20% (or something like that) that I spent on accessories. Dont know the limit that you can apply for. I've also heard that some Halfords dictate what type of bike you can buy. I have heard people now allowed to buy BMX bikes although the Halfords in Clyebank where I got mine, let me buy one.

Re: Cycle 2 work scheme

27 Aug 2015, 14:06

does anyone know what cycle2wrk final payments P6 £1.00 means do they take the £35 , £1 a week ?

Re: Cycle 2 work scheme

27 Aug 2015, 19:53

They took mine off in a £35 lump

Re: Cycle 2 work scheme

28 Aug 2015, 05:58

The rules changed in 2012 and now the final payment is a £1 "transfer fee" ,and then you will then find that your tax code is adjusted by the Fair market value amount (16% under £500 and 21% over £500) which then goes back to HMRC

Or so it said in the agreement I've just signed

Re: Cycle 2 work scheme

28 Aug 2015, 15:15

CAMPINGBLUNDERER wrote:The rules changed in 2012 and now the final payment is a £1 "transfer fee" ,and then you will then find that your tax code is adjusted by the Fair market value amount (16% under £500 and 21% over £500) which then goes back to HMRC

Or so it said in the agreement I've just signed

so now its going take another year to pay off the 16 % ? so much for 18 months

Re: Cycle 2 work scheme

18 Oct 2015, 17:51

Does anyone know if Halfords are dead set on imposing the "safety only" aspect of the accessories you're allowed to get with your purchase? RM say you can only get things like Helmets, lights, reflective clothing etc but not things like computers and training equipment.

I only ask because I don't need a bike but I do fancy a new Garmin Edge and a tonne of performance cycle clothing. I plan on getting a £1000 LOC and the cheapest bike I can, selling it and then spending the rest on bits n bobs. Taking complete advantage of the scheme, I know, but I just wonder if I'd get away with it?

Re: Cycle 2 work scheme

19 Oct 2015, 14:12

I doubt you are allowed to sell the cycle until you have paid it off.

Re: Cycle 2 work scheme

21 Oct 2015, 18:25

dtyssmshdchrb wrote:Does anyone know if Halfords are dead set on imposing the "safety only" aspect of the accessories you're allowed to get with your purchase? RM say you can only get things like Helmets, lights, reflective clothing etc but not things like computers and training equipment.

I only ask because I don't need a bike but I do fancy a new Garmin Edge and a tonne of performance cycle clothing. I plan on getting a £1000 LOC and the cheapest bike I can, selling it and then spending the rest on bits n bobs. Taking complete advantage of the scheme, I know, but I just wonder if I'd get away with it?

You don't have to buy from Halfords,I got my bike and some tools from another well known shop that just does Bike's,I also used it to buy pannier rack and mudguards,on a side note it's very expensive to buy a garmin edge from Halford's,it would be the last place I would buy from.

Re: Cycle 2 work scheme

27 Jan 2016, 13:09

Hey can anyone help me out, i cant log into that my bundle website. im signed up for the royal mail benefit one however but no way of logging into the next one to actually look at the cycle2work scheme. is there anyway around this?

Re: Cycle 2 work scheme

01 Feb 2016, 20:19

adamheppenstall wrote:Hey can anyone help me out, i cant log into that my bundle website. im signed up for the royal mail benefit one however but no way of logging into the next one to actually look at the cycle2work scheme. is there anyway around this?


Today I have logged in to "My Bundle" website. I had a letter from RMG dated October 2015 stating username was pay number & giving me a password. I have paid my final installment for the cycleplus scheme this week - I understood I would need to pay £35.00 release fee to keep the bike, but on further reading it appears I will have to pay back 21% of the market value to HMRC. (as someone already pointed out a saving of approx £75 on a£1,000 bike)
The halfords scheme (cycle2work) is 16% under £500.


Help

If you are having problems logging in, contact the My Bundle helpline through Royal Mail HR Services. Phone 0345 60 60 603 or +44 114 241 8890 if you are calling from outside the United Kingdom. The helpline is open Monday to Friday, 8:30am to 5pm (Tuesday from 9am), not including bank holidays.

My Bundle is available for permanent employees of Royal Mail Group only.




I have copied & pasted the following; (THE OTHER SCHEME is CyclePlus)


cycle2work faqs

What is the scheme?
How does it work?
Can I choose any bike?
Can I include cycling accessories and safety equipment in my letter of collection?
What happens if I no longer require the Letter of Collection?
What if I don’t use the Letter of Collection, can I return it and not be charged?
How many times a week do I have to use my bike for work?
Will my pension & other State Benefits be affected?
I'd like to join what do I have to do?
When will the reductions be shown in my pay?
What happens if the bike gets stolen before the end of the agreement?
Do I need to maintain the bike myself?
What happens if I go on unpaid leave?
What happens if I leave my job before I've finished paying for my bike?
Will cycle2work affect my Tax credits?
What are the benefits of participating in the scheme?
Who is eligible?
What value of bike can I choose?
Can I use the scheme to get a bike for a family member, partner or friend?
Can I apply for more than one bike?
Is the bike mine straight away?
What happens if I do not want to keep the bike at the end of the agreement?
What is a salary sacrifice arrangement and how are the savings made?
What happens at the end of the Hire Agreement?
What is the scheme?
cycle2work is a government approved scheme that allows you to hire a bike and safety equipment from Royal Mail for the purpose of commuting to and from work and for use at weekends and evenings. You can order your bike from any participating local retailer. The bike you hire will be provided at up to 32%* less than the usual cost you would pay which can result in savings of up to £320*.
*savings based on a lower rate tax payer taking a £1000 Letter of Collection for cycle2work Halfords stores.

cycle2work Halfords stores
Value of LoC (Letter of Collection) £100 £400 £500 £700 £1,000
Impact on Net Pay over 18 months (with finance added) £66.89 £267.56 £334.45 £468.22 £668.89
Plus £1* Transfer Fee £67.89 £268.56 £335.45 £469.22 £669.89
Total Saving £32.11 £131.44 £164.55 £230.78 £330.11
Saving Percentage 32% 32% 32% 32% 32%
*If Royal Mail Group Ltd decide to transfer ownership to employees after the 18 month hire period, a sum of £1 will be taken from your net salary to transfer the goods from the hirer to the employee. Then Fair Market Value of the goods as set out by HMRC will be calculated and the value will be added to your P11D whereby your tax code will be slightly adjusted to accommodate the taxes due. Please see P11D's explained for further information

How does it work?
You can choose a bike up to the value of £1000 from a list of local bike retailers provided to you. The value is spread across a period of 18 months depending on how your company's scheme has been set up. This is commonly known as a salary sacrifice or salary exchange scheme. You agree with Royal Mail that each month or week your gross salary will be reduced by the relevant payment in return for the use of the bike and safety equipment you use for commuting. This element of salary will not have Tax or National Insurance applied to it, making this a Tax free benefit.

Can I choose any bike?
As long as the store you choose to visit either stocks or can order the bike you want then you are not limited to any particular make or model, therefore you can choose the best bike that suits your needs and budget.


Can I include cycling accessories and safety equipment in my letter of collection?
Only safety equipment can be included in your letter of collection. Examples of items that count as cyclists’ safety equipment include:

Cycle helmets
Bells, bulb horns and lights including dynamo packs
Child safety seats
Reflective clothing along with white front reflectors and spoke reflectors
Examples of items that do not count as cyclists’ safety equipment include:

Cycle computer
Waterproof clothing that is not reflective clothing
Cycle training
What happens if I no longer require the Letter of Collection?
You cannot return your Letter of Collection. The hire agreement you agree to and sign is legally binding and therefore non cancellable.


What if I don’t use the Letter of Collection, can I return it and not be charged?
As above, you cannot return your Letter of Collection. The hire agreement you agree to and sign is legally binding and therefore non cancellable.


How many times a week do I have to use my bike for work?
The bike hired through the scheme is provided on the basis that the main use is for journeys between home and work. However, there is no requirement for you to specify what days/months of the year you will do this or record trips. N.B. you may also use your bike for leisure and weekends and whilst you are on holiday.


Will my pension & other State Benefits be affected?
Pension schemes will continue to calculate your pension contributions on your original gross salary. If you are unsure please check with your Royal Mail Limited. Effects on the S2P (formerly SERPS) are likely to be negligible (please refer to your company policy if you require further advice). Other benefits such as statutory sick pay and job seekers allowance are again unlikely to be affected.


I'd like to join what do I have to do?
Firstly find your Halfords store. You then visit the shop and choose your ideal package. To apply for your required Letter of Collection value, simply call 01908 303538 or log on to your company specific website and choose cycle2work - the details of which will be communicated to you by Royal Mail. Once Royal Mail has received your application and you have been approved, a letter detailing your requested value will be sent to your home address. You then take this along to your local store to collect your bike and safety equipment. Do not redeem the voucher until you pick up the bike from the store. The Letter of collection should not be used as a deposit.


When will the adjustment be shown in my pay?
Your adjustment will be shown on your next available pay period (depending on your pay frequency) after you have been issued with your letter of collection.


What happens if the bike gets stolen/accidentally damaged before the end of the agreement?
It is important that you make suitable provision to safeguard the bike. You may take a specialist policy but it is often easier to add the bike to your usual household policy. If the bike is stolen Royal Mail will continue to reduce the monthly value from your salary until the end of the agreement.


Do I need to maintain the bike myself?
You are responsible for maintaining the bike for your own use. Your local shop will be able to advise you about the necessary servicing depending on how you use your bike.


What happens if I go on unpaid leave?
During approved unpaid leave such as extended Maternity leave or a career break the hire agreement is likely to be suspended by Royal Mail until you return to work and your reduced pay resumes.


What happens if I leave my job before I've finished paying for my bike?
Under the terms of the hire agreement you will agree to settle all outstanding monies before you leave. The outstanding balance will be deducted from your final net salary payment.


Will cycle2work affect my Tax credits?
Most staff will benefit from joining the scheme. Current advice suggests that bike schemes are unlikely to affect Child Tax Credits. If you are in receipt of Working Tax Credits due to a lower household income then this may cancel out any benefit you gain from the scheme. As everybody's circumstances are different we recommend you contact the Inland Revenue on 0845 300 3900 if you are unsure.


What are the benefits of participating in the scheme?

You can save up to 32%* in Tax and National Insurance.
The payment will be taken on a weekly or monthly basis depending on your pay frequency.
You can choose from any make or model available from a range of local bike shops.
You can improve your health and fitness along with reducing your carbon footprint.
*savings based on a lower rate tax payer taking a £1000 Letter of Collection for cycle2work Halfords stores.


Who is eligible?
cycle2work is governed by the Department for Transport. In order to receive the Tax benefits resulting from a salary sacrifice arrangement you will need to be a UK taxpayer, who can benefit from the Tax efficiencies of the scheme.


What value of bike can I choose?
You can choose to take between £100 and £1000. When deciding on a bike value it's important to consider carefully the amount you can afford and the type of bike that best suits your needs. Once you have chosen your value, completed the hire agreement and received your Letter of Collection you will not be able to increase or decrease the amount you have chosen.


Can I use the scheme to get a bike for a family member, partner or friend?
No - the bike must be used by you and mainly for the purpose of commuting to work. However the bike can be used in leisure time so you may use the bike in your free time to cycle with friends and family.


Can I apply for more than one bike?
No. You can however apply for the scheme again once your current agreement finishes.


Is the bike mine straight away?
The bike and goods remain the property of Royal Mail or its finance company for the duration of the agreement. At the end of the hire period you may be given the opportunity to take ownership of the bike as explained further in "What happens at the end of the hire agreement?"


What is a salary sacrifice arrangement and how are the savings made?
Salary Sacrifice or Salary Exchange basically means you have agreed with Royal Mail to exchange a proportion of your salary in return for some form of non cash benefit, in this case the hire of a bike.


What happens at the end of the hire agreement?
If Royal Mail Group Ltd decide to transfer the ownership to employees after the 18 month hire period, a sum of £1 will be taken from your net salary to transfer the goods from the hirer to the employee. Then Fair Market Value of the goods as set out below by HMRC will be calculated and the value will be added to your P11D whereby your tax code will be slightly adjusted to accommodate the taxes due.
Transfer of Ownership - Example based on £450 purchase price:
If you have purchased a bike for £450 you would have 18 monthly salary deductions.
Under HMRC guidance the fair market value of the bike after 18 months will be £72 (16% of the original value).
P11D explained – P11Ds are used to report benefits provided to employees by Royal Mail that are not put through the payroll. The fair market value of the bicycle and equipment is calculated as per the table below.



Age of cycle

HMRC Fair Market Value


Original price up to £499.99

Original price £500+

18 months

16% of the original purchase price

21% of the original purchase price

Cycle 2 work scheme

01 Feb 2016, 20:57

Thanks very much for the help!

Cycle 2 work scheme

06 Feb 2016, 16:31

I asked about this in Halfords last week. They told me that you essentially get 20% off the bike through not paying tax on the repayments, and that on a bike under £500, you pay a 10% fee to take ownership at the end.

So in other words, you get a 10% overall discount (though some employers give up to £50 free accessories, not sure what RM offers). I went on Gumtree and found the same bike for half the price so I bough that instead. I suppose the interest free credit is a plus, and 10% is still a saving, but when you can buy 2nd hand for as good as new, I'd go that route.

Cycle 2 work scheme

07 Feb 2016, 08:37

These days, especially if you are spending >£500, the only real advantage is you spread the cost over 18 months. Actual savings are minimal.

If you can pay in one hit and the bike you want happens to be stocked at Halfords or Evans, use the RM benefits site to buy vouchers ahead of the purchase for a 10% discount (other cycle stores might be there as well in our benefits, just those two are the ones I know are there).

Cycle 2 work scheme

07 Feb 2016, 10:42

stan_lers wrote:I asked about this in Halfords last week. They told me that you essentially get 20% off the bike through not paying tax on the repayments, and that on a bike under £500, you pay a 10% fee to take ownership at the end.

So in other words, you get a 10% overall discount (though some employers give up to £50 free accessories, not sure what RM offers). I went on Gumtree and found the same bike for half the price so I bough that instead. I suppose the interest free credit is a plus, and 10% is still a saving, but when you can buy 2nd hand for as good as new, I'd go that route.
32% saving there's no national insurance due either

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