Cynical Pricing by Bike Shop for Cycle 2 Work Scheme

I have been looking at getting a bike through the Cycle2Work scheme being run by my company.

I had settled on a Rock Lobster TIG Team SL from Merlin Cycles @ £975.

I was about to order my bike when i discover they have raised the price of the bike to £1085 for people wishing to use the Cycle2Work scheme! Cash buyers recieve a 10% discount so effectively can still order the bike at the old price.

As Halfords administers the Cycle2Work scheme i can't see that purchasing from Merlin in this way incurs any greater overheads that would justify the price rise?

In my opinion this is cynical profiteering, without even the slightest attempt to hide it! Certainly not in keeping with the spirit of the scheme.

God i'm an angry man this week :evil:

isnt there some sort of tax break associated with this scheme too?im still a bit grey on the whole thing.do you actually end up owning the bike?a mates just bought himself a bike,which his company paid for,but he pays them back a nominal fee each month out of his wages.

Update to this...

Having emailed Merlin to vent my frustration, they have confirmed bikes bought via Halfords will also got the 10% discount. So i'll still get it for £975

deore 2":1781p4qo said:

isnt there some sort of tax break associated with this scheme too?im still a bit grey on the whole thing.do you actually end up owning the bike?a mates just bought himself a bike,which his company paid for,but he pays them back a nominal fee each month out of his wages.

Click to expand...

Yup, you pay for the bike monthly by 'salary sacrifice' which means it comes out of gross pay. Therefore i don't pay Tax or NI on the money used to buy it. This equates to a pretty healthy discount

Technically the company is buying the bike and you are leasing it from them for the monthly repayment fee. After 12 months the company gives you option to buy the bike for a nominal fee (typically 5% of it's purchase price), or you give it back. I'm not sure you can actually give it back so you have to pay the purchase option fee.