Tax free bikes with the Cycle to Work scheme

ds1980

long story!!!!!!!!!!

downshifter

adrian.ashton wrote: »

this is a great scheme, but sadly if you're self employed you can't access it - but instead you can reclaim the cost of the bike through 'apportionment' or a mileage rate (like for cars): but with a rate of 20p/mile able to be claimed on your tax return, you'll probably find that you're making money in this investment!

happy to post further details on request or see my blog (can't link to it here as apparently links not allowed in posts)

I'm self employed but commute to an office a few miles away so would love to take advantage of this. I realise I can claim mileage back after the event but that doesn't help find the upfront initial payment which I certainly can't afford. Interested in any ideas.

Thanks

DS

jizadine

eagle_eye wrote: »

Did this two years ago and managed to get 2 bikes in the space of a year [1 racer and 1 mountain bike] for £1500. I saved about £600 on this as I was a 40% taxpayer at the time. I had just about finished paying for them when my employer made me redundant! Still a good deal even if you are not a high rate taxpayer,but my company used Halfords and their servicing left a bit to be desired. Still use the bikes regularly though

Yes I too was made rendundant and still owed money on the loan - be careful entering into an agreement if you think your job is at ricsk because they took the money out of my redundancy pay + the 5% nominal purchase price :-(

yorkiebar

Any wrote: »

True, not every company is VAT registered, completely agree with your point. However if you are VAT registered, why wouldn't you claim the VAT back and make this cheaper for your employees?

My employer claims the VAT back but doesn't pass this on to us employees and pockets it themselves as "administration". Of course, they're already saving money from the employer NI savings but if they can grab some more....

Any

yorkiebar wrote: »

My employer claims the VAT back but doesn't pass this on to us employees and pockets it themselves as "administration". Of course, they're already saving money from the employer NI savings but if they can grab some more....

Nice employer... Not:eek:

Tee_Jay

I've been trying to convince my HR manager to support this - I managed to get the finance director on board but the dragon in HR says it's too much admin! I went back saying that just because something take a little bit of effort doesn't mean we don't do it!

Anyway - anyone know if there is much admin for the company to manage this scheme?

alex.q

sounds :money:good but what if your employer dosnt want to register for you ???????????

babylon76

Is there any responsibility on the employer to ensure you actually cycle to work? My employer recently joined and I saw loads of my colleagues who live relatively close to work buy bikes and continue to drive to work! :mad:

I live 40 miles from work, so my employer wouldn't consider letting me have a bike, as there's no chance I'd cycle that distance at the start and end of the day.

Any

Tee_Jay wrote: »

I've been trying to convince my HR manager to support this - I managed to get the finance director on board but the dragon in HR says it's too much admin! I went back saying that just because something take a little bit of effort doesn't mean we don't do it!

Anyway - anyone know if there is much admin for the company to manage this scheme?

No, it isn't masses of work... but all depends on how big the company is etc..

Our is fairly small (100 employees) and we simply buy a bike on company credit card, have the people sign a contract (very important!) and I then put it through the payroll... Put a reminder to take it off the system again after 12 mths & issue final invoice for the equipment.

As for reclaiming VAT - what, the extra line on my working sheets being a huge admin? Don't be ridiculous..

However something else entirely is the amount the amount company pays up front for the bike... If the cashflow is tight and many employees wish to join, it might be impossible for the company to offer the scheme.

Any

babylon76 wrote: »

Is there any responsibility on the employer to ensure you actually cycle to work? My employer recently joined and I saw loads of my colleagues who live relatively close to work buy bikes and continue to drive to work! :mad:

I live 40 miles from work, so my employer wouldn't consider letting me have a bike, as there's no chance I'd cycle that distance at the start and end of the day.

As you cannot have it why not spoil it for everyone else?? :rotfl:

This is the guidance
http://www.dft.gov.uk/pgr/sustainable/cycling/cycletoworkschemeimplementat5732?page=1#1012