Cycle2work

[dohnut]

Yeah I joined the c2w about 2 months ago in the understanding that like you said it is only £35.00 at the end to purchase the bike, but in my case its looking more like £160.00, not really saving much when you add everything together maybe £100.00., certainly not the 40% they claim you 'can' make.

[arnold cheshire]

Yeah I joined the c2w about 2 months ago in the understanding that like you said it is only £35.00 at the end to purchase the bike, but in my case its looking more like £160.00, not really saving much when you add everything together maybe £100.00., certainly not the 40% they claim you 'can' make.

my friends at work have used the cycle to work scheme they said nothing about 160 pound why is it looking like 160 pound ?

[OnAFlyer]

I've joined the cycle plus scheme, and at the end of the agreement it's 16% of the original value if the bike was up to £500 and 21% if it was £500-£1000.

You don't pay it as a lump sum though, your tax code is altered.

[arnold cheshire]

I've joined the cycle plus scheme, and at the end of the agreement it's 16% of the original value if the bike was up to £500 and 21% if it was £500-£1000.

You don't pay it as a lump sum though, your tax code is altered.

cycle plus and cycle to work are different schemes

[A2B]

This is from the FAQ on the Royal Mail Benefits website, i'm still confused! What if the bike is stolen (as has happened to people at my office) or for whatever reason i don't want the bike at the end of the hire period?

"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.

[A2B]

I've joined the cycle plus scheme, and at the end of the agreement it's 16% of the original value if the bike was up to £500 and 21% if it was £500-£1000.

You don't pay it as a lump sum though, your tax code is altered.

cycle plus and cycle to work are different schemes

The website FAQ says the same applies for both schemes, is this wrong?