Bike 4 Bangers Blog

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Commuter bicycle buying strategy loses some steam

I have never heard of this government backed commuter bike buying strategy, but it sounds pretty cool. Or, at least it did, until the government decided some people were working the bicycle buying system a little too hard.

Originally, buyers thought they would be able get KILLER deals on their bikes after riding them to work for 12-18 months. But, now, the value of purchasing the used bikes has gone up quite a bit.

Is it still worth it? I would like to hear how some riders are making out?

Al

Amplify’d from www.guardian.co.uk

Bad news for the Cycle to Work scheme

New tax rules could mean the end of bargain bikes
Bike Blog and Spectator : Cyclist by a green bicycle traffic light

Regular readers of the bike blog will know we are big fans of the government’s Cycle to Work initiative, which provides tax-free bikes to workers on a salary sacrifice scheme.

Alas, Her Majesty’s Revenue and Customs has decided to spoil the party by changing (or at least clarifying) the rules, which means the lovely £1,000 carbon road bike you signed up for might not be quite the bargain you anticipated. Doomsayers suggest this could be the end of the very popular scheme.

At the end of the scheme (which usually lasts 12-18 months), employees are given the opportunity to buy back “their” bike for “the full market value”
he tax office have decided that a bike worth more than £500 new will be worth 25% of its original value one year on.Read more at www.guardian.co.uk
 

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August 19, 2010 Posted by | Uncategorized | , , , , | Leave a comment