Saving money through Cyclescheme
What happens next?
The Government has published the table below to calculate the market value of bicycles and safety equipment at the end of the hire period: Age of bike 12 months 18 months 2 years 3 years 4 years
Acceptable disposal value % (inc VAT) Original value under £500 Original value £500 or over 18% 25% 16% 21% 13% 17% 8% 12% 3% 7%
Cyclescheme’s market leading end of hire process ensures attractive savings for all participants. By following Cyclescheme’s recommended option (entering into an Extended Use Agreement at the end of the hire period, see flow chart below) your savings are protected.
Example savings? We’ve put together the tables below to show you an example of the savings available for a basic rate tax payer using both a £500 and £1,000 example package. £500 example package Original value NI saving Tax saving Market value payment Total saving
£500 £60 £100 £15 £145
£1000 example package Original value NI saving Tax saving Market value payment Total saving
£1,000 £120 £200 £70 £250
What happens if I move jobs?
If Cyclescheme are notified of a change to your employment status during the initial hire period, we will contact you with the end of hire options. During the extended use period, if you change jobs the agreement is still valid as it’s an agreement with Cyclescheme, not with your employer.
Can I start a new scheme during the extended use period?
Yes. The Extended Use Agreement is entirely separate to the hire agreement, so you’re free to participate in future Cycle to Work schemes with your employer while you’re still in an Extended Use Agreement with Cyclescheme.
You pay a small refundable deposit** and sign an Extended UseAgreement with zero payments
The agreement ends after 36 months, when Cyclescheme may offer you ownership of the bike
Do you still want to keep the bike? NO Send the bike back to Cyclescheme, the deposit will be refunded
YES!
* current HMRC advice for bike values (inc VAT) after 12 months: 18% for bikes under £500, 25% for bikes over £500 **3% for bikes under £500, 7% for bikes over £500 (inc VAT)
Cyclescheme retain your deposit and confirm you as the owner of the bike. Enjoy using your bike!
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