cycle to work scheme charge customer commisions?

Picard · Dec 20, 2023

I found this news article on cycle weekly about company that charge bike shop commissions for lending bikes to customers.

Is this experimental scheme in the US?

https://www.cyclingweekly.com/news/we-are-paying-commission-to-a-company-which-is-actively-trying-to-harm-our-business-retailers-rally-against-outrageous-cycle-to-work-fees

Cycle to Work schemes - which allow people to save tax on bikes via 'loaning' them from their employers - should be more "transparent" about the "outrageous" fees they charge bike shops, one independent retailer has told Cycling Weekly.

The comments follow a war of words between the Association of Cycle Traders (ACT) and one of the UK's biggest Cycle to Work organisations, Cyclescheme, over new rules being introduced by the latter.
Speaking last week, Gavin Hudson of Butternut Bikes, in London's Crouch End, told Cycling Weekly that Cycle to Work organisations not only charged commission fees of up to 10%, but in some cases, had called customers and tried to sell them bikes cheaper, cutting his business out of the picture.

Mike Aswell · Dec 20, 2023

I didn't have time to do anything but skim but it comes across like normal cake and eat it too crying. He doesn't like their fees or practices but doesn't want to walk away from the business they're driving to him.

Unless I misunderstood in my very brief read.

Wabatuckian · Dec 20, 2023

I can't get past the "tax on bikes" part.

Harold · Dec 20, 2023

Mike Aswell said:
I didn't have time to do anything but skim but it comes across like normal cake and eat it too crying. He doesn't like their fees or practices but doesn't want to walk away from the business they're driving to him.

Unless I misunderstood in my very brief read.

my readthrough left me with more questions about how the system works, exactly, than it answered. I certainly have no idea how this scheme works in the UK, as I've never encountered anything like it in the US.

no cycle-to-work program I've seen in the US actually provides bikes. the ones I've seen are either direct subsidy or something you can claim on your taxes (for reducing traffic, emissions, need for parking spaces, etc) but you have to provide your own bike. Some are general "transit" benefits that individual employers offer and have a range of options, from ride sharing, public transit, or bike/ped commuting. The only equipment-related stuff I have seen in the US are usually through some kind of health insurance program that awards "points" for completing healthy activities or programs, and cheap bikes can be "purchased" with those points. Not saying stuff like this doesn't exist here, but I would have to imagine it'd be less common.

Shark · Dec 20, 2023

Avoid scheme....

shreddagorge · Dec 20, 2023

In the US there is (was) a small tax credit for biking to work, but it had to be administered through your employer, and I believe they got rid of it because of adoption rate. My company does loan e-bikes but it's subsidized by our wellness provider and administered by our gym management contractor. It's generally for use on the nearby bike path and they frown on biking them home (I believe they have some kind of timed disablement system - they are not geo-locked).

chiefsilverback · Dec 20, 2023

Wabatuckian said:
I can't get past the "tax on bikes" part.

It's not worded very well but essentially it's a scheme that allows you to access a bike with 'pre-tax' income, so in the UK where the top combined rate of tax is around 40% you can in theory get a £1000 bike for £600. It's not that simple though because the rider is effectively leasing the bike from their employer and there is a 'fair market value' purchase price at the end of the 12 month scheme which transfers ownership of the bike to the employee.

Sidney Porter · Dec 20, 2023

I skimmed the article but it seemed like a lot of words without clearly outlining the process and why it is a problem.

It might be horrible but the author did not convey that information very well

bingemtbr · Dec 21, 2023

Harold said:
my readthrough left me with more questions about how the system works, exactly, than it answered. I certainly have no idea how this scheme works in the UK, as I've never encountered anything like it in the US.

Same here. I can only comprehend American-English. That British-English is confusing.

cycle to work scheme charge customer commisions?

Picard

Mike Aswell

Wabatuckian

Harold

Shark

shreddagorge

chiefsilverback

Sidney Porter

bingemtbr

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