#6448605, By Lateralaus Cycle Scheme Tax-free bikes for work

  • Lateralaus 12 Aug 2010 12:07:33 1,092 posts
    Seen 3 years ago
    Registered 11 years ago
    I'm just wondering if anyone has got a bike through this scheme? I'm thinking of doing it but there's a section that's worrying me a little. It states;

    What happens at the end of the hire period?

    At the end of the hire period employees may be given the opportunity to buy the bike for a full market value, however this cannot be an automatic entitlement. The cost of full market value cannot be stated before or during the hire period as this could be considered a benefit in kind and therefore not be eligible for tax benefits. Many employers opt for Cyclescheme to take ownership of the bikes at the end of the hire term, in which case any offer sale to the employee will come directly from Cyclescheme.

    I might be getting the wrong end of the stick here but to me that sounds like after paying the fee over the given course of time you can then buy the bike for full price?

    I'm pretty confused at this and would appreciate if anyone could shed some light or experience on it.
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