Join Date: Dec 2009
Location: Worcester, England, United Kingdom
Bikes: Ribble 531C/Shimano 600 (pre ultegra)
Some of the issues that occur to me are
1) Under the scheme the cycle is supposed to be used for traveling to and from work;
This is fine for the the first few weeks during the summer, but what about snowy December when you take the car/bus/train and ride for pleasure during the weekends.
As HP are a big employer they may be more likely to audited by HMRC than other smaller firms.
2) If you leave your employer you will probably find that you have to pay off the whole lease on leaving.
3) In the past, at the end of the lease period the cycle tended to be valued at a very low amount, almost free. HMRC has cracked down on this a bit. After a year 25% of the new price of the bike is the minimum they will accept, personal safety equipment much less.
but as you suggest that you would be paying about £600 then you appear to have considered this.
4) However under the arrangement, the employer is not obliged to sell the bike to you at the end of the lease period.
So in theory at least, you could be making the lease payments and at the end the employer could put the bike on e-bay and get a lot more for it. Again as HP are a big company, they may be more likely to do what is safe in respect of HMRC guidelines.