Cycle to work scheme?

[prmedloc]

Some employers give you the 20% vat back.

And you can have a 48 month hire period even though you pay for it over 12.

So in the best case a £1000 voucher costs you £800. you save between 30-50% tax and pay a nominal amount to purchase the bike after 48 months.

Whats wrong with that?

 

[cwah]

The problem is that if you want to be the owner of the bike, you end up paying almost the total price of the bike.

So unless you don't have the money to pay the total price of the bike immediately, I don't see any value in this scheme.

 

[HarryB]

If you buy it over 12 months you have to pay a final fee of £250, £70 for 48 month but not everybody wants to keep a commuter bike that long (not me). Bike shops don't give you a discount, you have to pay list. Technically you can only buy a bike for less than £1000 and there are not that many at that price point, certainly none that will last 4 years. If you do find a shop that will break the rules you will have to pay £50-100 on top of the list price.