Cheap Bikes and Computers saving tax

Tricky_Dicky_5 · 27 October 2005 at 7:26PM

Not sure how well advertised these 2 government schemes are but I have just come across the "Home Computer Initiative" and the "Bike 2 Work" schemes.
Both of these operate through salary sacrifice which results in you not paying income tax and national insurance on the instalment amount.
The scheme is run by your employer who basically leases the computer or bike to you for a set period (36months for the computer and 18 months for the bike in my case)
I have just ordered a £1750 computer for £25 month including full on site maintenance for 3 years. At the end of the scheme I either hand the PC back or buy it for no more than £50.
More info is to be found on http://www.knowledgenetwork.gov.uk/oee/hci.nsf/0/7908C3347218272C80256E0F0041F265?OpenDocument
The Bike Scheme seems to be run through Halfords and the bike needs to used for 50% of its use for commuting to and from work. But again offers big savings through.

These schemes do offer your employers some savings as they dont pay NI on your sacrifice amounts

Woby_Tide · 27 October 2005 at 9:21PM

whilst they have certain benefits, from the PC's I saw offered in our scheme they looked fairly bad value unless you really value n site support. For £1750 worth of PC you must have a fairly hefty piece of kit ordered, which PC did you go for(which if it is only costing £950 over scheme is worthwhile)?

Tricky_Dicky_5 · 27 October 2005 at 9:45PM

I ordered a laptop through the scheme, I compared the spec online with various companies such as Dell / Compucentre and similar specced machines were coming in at around 1600 - 1700 without the on site warrenty which is for 3 years in my instance. Considering Laptops are more fragile than Desktops I think the onsite cover is worth while. Other options are available which are cheaper. I understand that another perk of these lease back schemes are that there is no VAT to pay on the computer so you immediately start off with a 17% saving.