The negligible value calculation is an HMRC concept. It’s unlikely a bike bought for £1000 is only worth £250 1 year later but that’s what HMRC says.
Yes, but that’s my point, right now, with the hugely inflated price of bicycles it’s absolutely not true, so we do have the risk of the HMRC guidance being updated - the guidance in place at the end of the scheme, not todays guidance is the one that will matter, which means it could change, the simplified scheme value is certainly garbage, I sold a 500 quid 2004ish bike for 150 quid a few weeks back.
Also remember that the guidance can’t be used where it’s been ridden by a famous person, and surely that must apply to loads of tritalk people!
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To be fair, you’re also supposed to ride the bike to work, but I bet the majority of “proper” cyclists don’t 
Erm…
People at our place have bought them who live about 40 miles away in the past!
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Sounds perfect for commuting as training 
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My company have announced they’re using Cycle Scheme this year having previously used Evans. The advantage of cycle scheme is you can use your LBS. 
Do Evans not still accept cyclescheme vouchers? Both my purchases about 6-7 odd years ago were via a cyclescheme voucher used at Evans
I believe they do, but you just get more freedom of choice with the Cyclescheme voucher.
I just banged my bike on a 24 month 0% credit card in the end. Saved all the hassle of work schemes etc and had total freedom of choice to seek out genuine deals.
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Remember that some suppliers will take the vouchers, no matter who they are from.
I bought my £1,299 Ribble Endurance 725 via the Halfords scheme.
Using my £1,000 voucher at Ribble cost me ~10% in admin fees.
The admin fees had to be paid back NET each month, so cost £10.06 per month.
The Cycle To Work was an £83.33 gross deduction each month
As a higher rate tax payer, I saved ~£400 in tax and ~£20 in NI contributions.
Therefore, net, I paid £580 for the bike from my wages.
Further to this, I had to pay the 12 month ownership fee:
This was made up of an £84 net deduction from one payslip, plus tax on £116 (£46.40) BIK on my P11D for 2020/21.
So, I basically paid a further £130.40 to keep the bike.
Total Cost?
£1,299 purchase price
£299 cash from me
£120.72 admin fees, deducted from NET salary
£580 net payments from salary
£130.40 final ownership payment
Saving?
£168.88, or ~13%
Which is vastly different to what the online calculators would lead you to believe.
If the whole value of the bike was at the 20% tax rate, then I would’ve ended up paying more for the bike than what it was worth (as I bought a bike for over £1k, from a different supplier, so had admin fees to pay)
For the coming year, I am lobbying my employer to do away with the £1k limit and take on a 4 year ownership option…
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As you say though, that’s a consequence of your employer, and your circumstances having bought a bike from elsewhere that required admin fees and one over £1000.
I bought a £1000 bike via my company’s scheme in about 2014. The savings I made were the same as you, so net cash outflow (spread over 12 months interest free credit, which is a financial upside you didnt factor in) was £580. That’s all I’ve ever paid as my company did the 3 year extended zero cost hire period, and then just appear to have forgotten to follow up. So 6 years on it is now worthless in tax terms. So I saved the full 42%.
It’s clearly not as good as it was when you also saved the VAT way back when, but if you understand your employer’s offer, and go in eyes wide open, you can still make a significant saving and have minimal hit to your take home pay cashflow
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Yes, you’re 100% correct 
I knew what I’d be saving and wanted that bike.
I needed a winter bike and that one is superb (I prefer it to my BMC 
)
The fact it’s not a credit card or finance agreement on your credit file is a massive plus point to me.
I was trying to illustrate that even for a higher rate tax payer, if you’re buying a bike over the limit, with a 12 month ownership scheme, you might be better off hunting a bike down in the sales - than being tied to a particular scheme and ending up with a bike you don’t really want, or paying admin fees for the one you do.
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After all of that…
…had the email that my employer has switched providers and is opening the window next week!
Called the provider and they offer three options:
- 12 month transfer of ownership
- hand the bike back
- Delayed ownership…which I hope is the 48 month option (they are emailing me the Extended Hire Agreement, for which a nominal fee is payable)
Now…to choose what disc braked gravel adventure bike I want 
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… I thought disc brakes were pointless? 
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Hence the mention
Not for adventure innit.
Don’t want me rims getting all clogged up on my adventuring.
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