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changes to cycle2work scheme
Hi
My employer has just forwarded me this link which explains changes to in HMRC guidelines and the effect it has on our cycle2work scheme.
The new charging model means ill be paying a lot more at the end of my 'lease' than previously (I think, if i've read it right). It's not easy to work out what benefits i have incurred through my tax, so its difficult to work out.
What do people think? Has anyone else come across this?
[FONT="]http://www.hmrc.gov.uk/manuals/eimanual/EIM21667a.htm[/FONT]
My employer has just forwarded me this link which explains changes to in HMRC guidelines and the effect it has on our cycle2work scheme.
The new charging model means ill be paying a lot more at the end of my 'lease' than previously (I think, if i've read it right). It's not easy to work out what benefits i have incurred through my tax, so its difficult to work out.
What do people think? Has anyone else come across this?
[FONT="]http://www.hmrc.gov.uk/manuals/eimanual/EIM21667a.htm[/FONT]
0
Comments
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If you search this forum you will find loads of threads on this already.IT Consultant in the utilities industry specialising in the retail electricity market.
4 Credit Card and 1 Loan PPI claims settled for £26k, 1 rejected (Opus).0 -
Hi
My employer has just forwarded me this link which explains changes to in HMRC guidelines and the effect it has on our cycle2work scheme.
The new charging model means ill be paying a lot more at the end of my 'lease' than previously (I think, if i've read it right). It's not easy to work out what benefits i have incurred through my tax, so its difficult to work out.
What do people think? Has anyone else come across this?
[FONT="]http://www.hmrc.gov.uk/manuals/eimanual/EIM21667a.htm[/FONT]
Yes, everyone is affected by this.
It is issued by HMRC for all companies, so there is no way of avoiding it.
You saved 17.5% VAT on purchase and 20% tax (for 20% tax payers) and NI on the monthly payments.. because you didn't pay tax & NI on this amount.
And don't forget 12 mths interest free loan (as you paid it off over time).
So that will give you the amount you saved.
The benefits still outweight the payment.0 -
There is a way of avoiding it that seems acceptable with HMRC http://www.guardian.co.uk/money/2010/nov/13/cycle-to-work-bike-tax-benefit0
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There is a way of avoiding it that seems acceptable with HMRC http://www.guardian.co.uk/money/2010/nov/13/cycle-to-work-bike-tax-benefit
We are lending it back for £1 a month as well...
But it's messy and as employer would rather get rid off it now full stop.
You cannot ask your employer to fork out for you if they don't want to.
(admin time etc).0
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