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Cycle to work scheme
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Mrs SOG is thinking about getting a bike under the "Cycle to Work Scheme". Her employer (she works for a school) does offer the scheme. As I understand it, she would be hiring the bike to a year and *may* be offered the option of buying the bike for its fair market value at the end of the hire period, which is normally one year.
Has anyone used this scheme? What "fair market value" were you charged at the end?
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We're just in the process of setting it up at work. The schemes can vary a bit, depending on the employer - we're going for one where we pay a fee to an outside company to do all the admin, because we don't have the resources free to do it ourselves. They quote a typical "fair market value" as being "about £50". They are not allowed to write it into the hire agreement, as it then becomed a hire purchase, which is not tax deductable, but in practice the hirer of the bike will be given first refusal on the "sale" at the end of the agreement.
Chances are if she works for a school her employer is a local authority, who may well run their own scheme, in which case they may have already "sold" some, and might be able to give her an indication.
and I believe "fair market value" is a bit of a misnomer for "don't take the piss when you sell it to the staff member or we'll come down on you like a ton of ordure"........so a reasonably low, but not stupidly low, price......i.e. don't give it away!
I got some helpful info form the scheme administrator at south Gloucs council. It sounds like a goer.
Thanks for the feedback though.