| + Visit Cardiff FC for Latest News, Transfer Gossip, Fixtures and Match Results |
My employer has just started offering this, thinking of using it to buy a hybrid/commuting bike. I understand the terms of the offer but trying to figure out exactly what the scheme will cost me each month out of my salary. The monthly costs come out pre deductions so won't pay tax or NI on that part, so does that mean that effectively I'm saving 20% (as a 20%) tax payer or is it not that clear cut? Just trying to work out the exact cost to me as the same bike is priced slightly cheaper in Tredz who alos of 0% finance for 12 months, just trying to wok outt he best deal.
Anyone here with more brain cells than me that can calrify for me?
Say you were spending £500 and were a normal rate tax payer then buying this interest free from the shop would cost you £41.67 a month.
If you were to buy the same bike through the scheme you would save £100 tax and £60 NI, so it would cost you £340 over the year or £28.33 a month.
(I think)
Thanks for the reply! I understand the 20% saving on tax, how did you figure a £60 saving on NI? Is NI rate for normal rate tax payers 12% then?Originally Posted by The Bloop
As long as youre earning over £8060pa then yes.
Okay cool, didn't realise the saving on NI would be that much! Works out to be quite a good deal then if that's correct.
Cheers :)
There's calculators on line you can use to work out the exact figures and i yhink you can include accesories in the scheme aswell as just the bikes itself . It changes a bit if you pay tax at the higher rate mind.
Good luck.
Yeah, going to need a new helmet and decent bike lock so may include them on the deal too depending on what offers the store has on! Cheers again!
My employer has just started offering this, thinking of using it to buy a hybrid/commuting bike. I understand the terms of the offer but trying to figure out exactly what the scheme will cost me each month out of my salary. The monthly costs come out pre deductions so won't pay tax or NI on that part, so does that mean that effectively I'm saving 20% (as a 20%) tax payer or is it not that clear cut? Just trying to work out the exact cost to me as the same bike is priced slightly cheaper in Tredz who alos of 0% finance for 12 months, just trying to wok outt he best deal.
Anyone here with more brain cells than me that can calrify for me?
You should be able to get the bike from Tredz on the cycle to work scheme. So you will benefit from their lower price and the tax and NI savingsMy employer has just started offering this, thinking of using it to buy a hybrid/commuting bike. I understand the terms of the offer but trying to figure out exactly what the scheme will cost me each month out of my salary. The monthly costs come out pre deductions so won't pay tax or NI on that part, so does that mean that effectively I'm saving 20% (as a 20%) tax payer or is it not that clear cut? Just trying to work out the exact cost to me as the same bike is priced slightly cheaper in Tredz who alos of 0% finance for 12 months, just trying to wok outt he best deal.
Anyone here with more brain cells than me that can calrify for me?
The cycle to work scheme is a great idea but it's a pain walking home every evening.
I get around that by simply having my 6 ton 48 litre Hummer flown to my place of work each night for the drive home. Being a behomoth of a vehicle, it naturally has plenty of room to put my bike in the back.
If you fail to plan, you plan to fail.
You save about 25% in total. You initially save 32% but at the end of the scheme you have to pay them 7% of the value of the bike.
Some dealers won't let you put their discounted bikes through the scheme.
To give you some idea I borrowed 580 and my monthly take home is approx 22 quid less. That's for 18 months and then I'll have to give them a final payment of around 40/50 quid. So borrowed 580 will pay back around 435/445.
However I had a 700 quid bike and 100 quids worth of accessories for that cos Pauls Cycles let me purchase one of their sale bikes. They had to fudge the figures slightly more expensive than the final sale price but I'm still quids in.
Well was quids in. The novelty wore off after a month.
Cheers all for the comments, we can only use CyclesUK for the scheme at my work as that's the agreed supplier with my employer. The bike I'm looking at is under £500 so the fin
That sounds like a great deal you've had! Sadly I can only use the 1 online shop to do the scheme and no negotiation on price but the bike I'm looking at is a £500 bike reduced to £380 on thier site so still a good deal. Sadly they don't have such competitive prices on accesories so will just pick up a lock and helmet etc from Tredz I think!
Posting Permissions
Reply With Quote