ride2work scheme

I just bought a bike under the ride2work scheme. This is a government sponsored initiative that allows you to buy a pedal cycle for the purposes of commuting to work free of VAT, paid for by monthly deductions over a one year period out of your pre–tax salary on an interest–free basis. If your salary extends into the higher rate tax bracket, this effectively means that you get the bike for more or less half price on one year’s interest–free credit (although technically the scheme is a kind of hire purchase agreement, under which your employer retains title to the bike during the one year period).