My Next Cycle scheme bike ?
Discussion
What shall I get, the deal is so compelling it is tax free and I can offset it against the child benefit, it means a £1000 bike cost me about £400 and I do use them most days, so far I have
Cannondale Bad Boy 700 Hybrid (Hardly use, a bit rough)
Specialised Allez Elite, my summer bike, well used.
Trek 8000 MTB, winter daily.
So, what else is worth going for, thinking a newer Roadie with disks, perhaps the Secteur disk, ot maybe a Croix De Fer, or a Surly something or other, what do you reckon ?
Cannondale Bad Boy 700 Hybrid (Hardly use, a bit rough)
Specialised Allez Elite, my summer bike, well used.
Trek 8000 MTB, winter daily.
So, what else is worth going for, thinking a newer Roadie with disks, perhaps the Secteur disk, ot maybe a Croix De Fer, or a Surly something or other, what do you reckon ?
You pay 60% tax???? £1000 voucher costing only £400 ……….. my understanding is you don't pay your tax (28, 40 or 45%) on the amount or national insurance (think thats around 2%?)…… so even in top bracket you save around 47%… I may be wrong but Ive just put in for one from work in December and one of my grads did the calculations for me….. if she's wrong she's gone :-) …. (only kidding got more brain power than I do in my little toe)
Never having had the ability to buy a bike through cycle schemes I don't know about the tax situation but looking at what you already have I can't see what you would get to be honest that makes sense. If your limit is £100, regardless of how much you save, you are still only going to get a £1000 worth of bike which doesn't go that far and I can't see it will represent a huge upgrade on your current road bike.
I'd either go for a Ribble a Gran Fondo carbon frame with 10sp Tiagra 4600 with the intention of upgrading over time and use the Allez for winter or a new mtb given you ride that often. Something like a Trek 8.6 Elite, it depends what needs replacing sooner really, the Allez or the a Trek? The 8.6 has a quality fork and good spec.
I'd either go for a Ribble a Gran Fondo carbon frame with 10sp Tiagra 4600 with the intention of upgrading over time and use the Allez for winter or a new mtb given you ride that often. Something like a Trek 8.6 Elite, it depends what needs replacing sooner really, the Allez or the a Trek? The 8.6 has a quality fork and good spec.
I love how no-one seems to understand the CTW savings calculation. It's not that complicated.
No CTW: you are paid £x gross and 20/40% of that (excl tax free allowance) goes as tax.
Do CTW £1k: you are paid £x minus £1k. You pay tax on £x minus £1k.
Because you are being paid less, you also pay less NI (as does your employer).
No CTW: you are paid £x gross and 20/40% of that (excl tax free allowance) goes as tax.
Do CTW £1k: you are paid £x minus £1k. You pay tax on £x minus £1k.
Because you are being paid less, you also pay less NI (as does your employer).
I'm thinking of getting a CX bike to use as both a winter/commuting bike and to follow the kids around on. It will allow me to sell my old snotter and also mean that when we go away on holiday, I have a decent bike for disappearing on for an hour or so on without having to take 2 bikes away with us.
Am I doing this, 'getting obsessed' right?
This being PH, I am looking at a Focus Mares AX 3.0 which is well in excess of the original scope
Steve
Am I doing this, 'getting obsessed' right?
This being PH, I am looking at a Focus Mares AX 3.0 which is well in excess of the original scope
Steve
Gizmoish said:
I love how no-one seems to understand the CTW savings calculation. It's not that complicated.
No CTW: you are paid £x gross and 20/40% of that (excl tax free allowance) goes as tax.
Do CTW £1k: you are paid £x minus £1k. You pay tax on £x minus £1k.
Because you are being paid less, you also pay less NI (as does your employer).
So a rough saving of 20pc+NI for lower-rate taxpayers and about 25-35%+NI for higher-rate earners?No CTW: you are paid £x gross and 20/40% of that (excl tax free allowance) goes as tax.
Do CTW £1k: you are paid £x minus £1k. You pay tax on £x minus £1k.
Because you are being paid less, you also pay less NI (as does your employer).
944fan said:
There is an addituonal saving if you earn over £50k but less than £60k and have kids. Because the CTW is salary sacrifice it reduces your taxable earnings and means you are eligible for more child benefit, whcih used to be universal but is now taken away in stages over 50k.
Yeah, cheers, thats what I was getting at but had had a drink at the point I wrote it.This fits in with paying higher pension contris and taking an extra week off, my limited attempt at tax avoidance.
So, what shall I get, am thinking the Secteur Disk, then move my Allez on.
antspants said:
OT but how have you found the Allez Elite?
I'm considering a lightly used 2013 version as my first road bike, as I'm not getting as much time to get out on my mtb as I used to.
Have done probably four to five thousand on it and its been pretty good, the standard tyres were crap and punctured every two minutes so were replaced, the original drivetrain lasted about three thousand on my commute, the wheels were pretty crap and got replaced but the brakes, frame and all the other gubbins has been fine, pretty comfy and rides nicely, very fond of it really but may go for the Secteur Disk to replace it. Commuting all winter is pretty tough, it killed the pawls in the freewheel on one wheel in no time.I'm considering a lightly used 2013 version as my first road bike, as I'm not getting as much time to get out on my mtb as I used to.
Do you guys not have a stupid clause in your agreements like me?
Employer said:
• There is no automatic entitlement for employees to take ownership of the bicycle and equipment at the end of the hire agreement, the firm may give you the option to purchase the bicycle by transferring ownership over to you for substantially less than the original value of the equipment at the end of the 12 month period. Should the firm choose to give you this option, to prevent a taxable benefit in kind arising as a result of this transfer in ownership, a “fair market value” for the bicycle needs to be paid at the end of the hire term. As there is no tax relief on this payment, this is deducted from your net pay.
That's always put me off as i assume if would completely negate the saving.bulldog5046 said:
Do you guys not have a stupid clause in your agreements like me?
It can be partly got round by it being transferred to you as a taxable benefit. In this case you only pay the tax due (20%/40%) on the fair market value, not the full value from the table. Mine was done like this and for a £550 bike I paid in total about £380 (40% tax relief).Employer said:
• There is no automatic entitlement for employees to take ownership of the bicycle and equipment at the end of the hire agreement, the firm may give you the option to purchase the bicycle by transferring ownership over to you for substantially less than the original value of the equipment at the end of the 12 month period. Should the firm choose to give you this option, to prevent a taxable benefit in kind arising as a result of this transfer in ownership, a “fair market value” for the bicycle needs to be paid at the end of the hire term. As there is no tax relief on this payment, this is deducted from your net pay.
That's always put me off as i assume if would completely negate the saving.Gassing Station | Pedal Powered | Top of Page | What's New | My Stuff