April 7, 20179 yr We've done a bit of a push in the Guardian's "My Green Pod" magazine today. It goes out to nearly 4,000,000 people. An interesting read for anyone that is unaware of the Green Commute Initiative, it could save you 42% off the price of a new electric bicycle! http://www.mygreenpod.com/articles/pedal-power/ All the best, David
April 7, 20179 yr is there a new tax break? I haven't heard anything about a new tax break beside the cycle to work scheme.
April 7, 20179 yr is there a new tax break? I haven't heard anything about a new tax break beside the cycle to work scheme. Apparently, here's the link: http://greencommuteinitiative.uk/ No £1000 limit and no pay 7% at the end, sounds good. . .
April 7, 20179 yr It mentions the word "hire" a lot....does that mean you give the bike back at the end of the period?
April 7, 20179 yr It mentions the word "hire" a lot....does that mean you give the bike back at the end of the period? It doesn't seem so according to this extract from David's article: Unlike the standard Cycle to Work scheme, where employees have to pay a hefty fee to own the bike, the cost of ownership with GCI is just £1. .
April 7, 20179 yr I'm sure I've been told this scheme itsn't legit... I'll have to go back through a load of my records. So this isn't confirmed, but I'll update this as soon as I find what I've been sent. edit... ignore that, I clearly need to get out more, I must be dreaming about cycle 2 work schemes now. https://cyclingindustry.news/c2w-scheme-green-commute-initiative-gains-fca-licence-offers-no-price-limit-purchase/ Edited April 7, 20179 yr by KTM Bike Industries UK
April 7, 20179 yr Apparently, here's the link: http://greencommuteinitiative.uk/ No £1000 limit and no pay 7% at the end, sounds good. . . they seems to be just another C2W scheme provider. The cheapest is the self administered free C2W scheme, suitable for small businesses. The maximum saving is about 50%. Just print out the template contract, fill in the names, sign and put away. The credit license is only required, as I understand it, if the scheme is provided by third party. If the employer buys the bikes, there is no limit how much they can spend on the bikes.
April 7, 20179 yr I'm sure I've been told this scheme itsn't legal... So suitable for those buying illegal e-bikes. .
April 7, 20179 yr So suitable for those buying illegal e-bikes. . indeed 2 wrongs cancel each out and everyone's happy. But as an update, I'll amend the original post to save confusion. I don't know where I drempt up the issue with the scheme, I'll keep digging. But its been confirmed as legit, so I'm going mad. https://cyclingindustry.news/c2w-scheme-green-commute-initiative-gains-fca-licence-offers-no-price-limit-purchase/
April 7, 20179 yr Author I have been working with Rob Howes from C2W Pro for over a year now. He was involved with the setting up of the original C2W set up. We have checked the scheme and along with Heathrow Airport, The City of London and many more we believe it is entirely legit. The big differences are: 1. No £1000.00 limit 2. Only 5% charge to the retailer 3. They will negotiate with employers to help set up the scheme and handle all the paperwork 4. They will lend the money to the employer to fund the original purchase of the bike, and will charge less than the saved employer's NI contribution for the loan. 5. There is no 7% final payment for the bike, they charge £1.00 for the final purchase. 6. If you add the employers NI contribution, a 40% tax payer would save themselves and their employer between them a tad under 55% off the price of the bike. All the best, David
April 7, 20179 yr Author It mentions the word "hire" a lot....does that mean you give the bike back at the end of the period? Hi Andy, at the end of the period they charge a nominal £1.00 for the bike. All the best, David
April 7, 20179 yr Hi Andy, at the end of the period they charge a nominal £1.00 for the bike. All the best, David Sounds great. I think my employer will be sticking to the halfords C2W scheme again this year. Wish it was simpler for the employee to pick what scheme to go with.
April 8, 20179 yr Author Hi Andy, if you email me your employer's details I will get Rob from Green Comute to call them. This scheme is so much more beneficial to their employees I am sure they would listen and you can buy your bike away from Halfords. Just a suggestion! All the best, David
April 8, 20179 yr The scheme looks reasonable, although it's encouraging the customer to take on more debt. Another problem for a lot of us would be persuading our employers to take it on. I know my lot wouldn't consider entering into a financial contract with any company at my suggestion.
April 8, 20179 yr Author All fair points Rob, but maybe we should be concentrating on the massive savings available to those who want to use an Ebike to commute? The government offering to fund more than 50% of the purchase price of any electric bike for people to cycle to work must be something to celebrate? All the best, David
April 8, 20179 yr Always worth doing the sums carefully. The existing £1,000 scheme is ludicrously complicated, and savings can depend on how the employer administers it. Seems to me some all but ignore the final payment, which is a bit rough and ready but does increase the saving to the employee. Also worth bearing in mind most Cycle to Work bikes will be sold at full price. A cash discount and payment by an interest free credit card can work out just as cheap, and is simpler and more flexible. A Brompton on Cycle to Work can be a good prospect because they are generally not discounted.
April 8, 20179 yr Author The problem with the old scheme, apart from it being complicated, is the retailer has to pay 10% of the total value of the sale, including the VAT element, as fee to C2W. On the Green Commute scheme the retailer pays 5% which leaves a little for negotiation. Even with no extra discount from the retailer, for a higher rate tax payer a 42% discount, no deposit and a year's interest free loan to buy the bike is hard to beat. Why look a gift horse....? For a higher rate tax payer a Wisper 705se at £1,099 would cost £0 down and £53.13 per month then a final £1 purchase fee after 12 months. Total £638.42. What's not to like? How much do people generally pay for public transport to work or to run a car? Probably more than £15 per week? This is a great incentive to get people onto electric bicycles, we'll all moan if it's taken away! My advice grab it while you can! All the best, David Edited April 8, 20179 yr by Wisper Bikes
April 8, 20179 yr The scheme looks reasonable, although it's encouraging the customer to take on more debt. . I don't think that you need be concerned or feel bad about that one Rob. See below, a reference made to high income, high rate tax payers. 40% tax payer would save themselves .
April 8, 20179 yr Author It does seem crazy that those paying 40% get more assistance than someone paying 30% etc. Those that need more help get less. Even though it it's obviously unfair I would advise those paying lower rates of tax not to ignore. They will still save 32% if paying 30% etc. Not to be sniffed at. All the best, David
April 8, 20179 yr Hi Andy, if you email me your employer's details I will get Rob from Green Comute to call them. This scheme is so much more beneficial to their employees I am sure they would listen and you can buy your bike away from Halfords. Just a suggestion! All the best, David Thanks David I will dig out some contact details when back in work on Monday. I dont hold much hope for any changes as they employ over 70,000 people in the UK, and get the feeling one person can't change their way of thinking. Many thanks.
April 8, 20179 yr PS either scheme is a no brainer for me. A rail ticket when I move house will cost 1700 for the year... thats for a 40 mile round trip plus 15 minutes walk at each end. My employer does offer interest free loans for that, but there are no tax benefits in it. The cycle shemes win hands down, and the added bonus is not being stuck on a train for 2 hours a day!
April 9, 20179 yr Author Hi Andy, Rob from Green Commute would be happy to talk the scheme through with your employer. He will even arrange a loan for them to buy the bike and the cost of the loan would be more than covered by the 13.8% saving they will make on employers NI contribution. In fact they will actually save money and increase profits buy supplying bikes to their employees! If you email me I wil happily put you in touch. All the best, David
April 9, 20179 yr I run my own VAT registered business, my accountant said the cycle to work scheme was not beneficial for me. As the cycle would be mainly used for work he said the company can buy it, this way I get the VAT back and corporation tax relief.
April 9, 20179 yr It's also worth bearing in mind that the £1000 limit doesn't always apply even with regular cycle to work schemes. If you're lucky enough to work for an employer that has its own credit facilities the £1000 limit may not apply. This is the case with my employer, who set the cyclescheme purchase limit at £10,000, which obviously offers a lot more flexibility as well as potentially much greater savings. I must say I feel sorry for independent retailers having to take a 10% hit. Now I realise why some bike shops were less than enthusiastic when I mentioned C2W!
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