cycle solutions - cycle to work

welsh

Hi all 

I am interested in using the cycle to work scheme but want to know if tax code effects the savings.  My tax code is 1000 instead of the usual 1250L.  Next year it is likely to be less, lets say 800.  So i can earn less tax free so paying more tax per year. 

If i use the cycle solutions calculator and buy a bike through them : 

Total cost of bikes and accessories: £2,000.00 ( as an example) 

Salary sacrifice: (from your Gross Pay each pay period) £146.67

Actual pay period cost: (from your pocket in each pay period) £85.07

Total cost: (over payment term) £1,020.82

You save: £979.18

(So this includes a 12% saving buying direct through cycle solutions)

My question is, if anyone knows, if my tax code is lower do i get less benefit from the scheme?    

thanks in advance 

wongataa

The amount of benefit depends on which income tax band you are in.  You get more benefit if you are in the 40% band.  You get less benefit if you are in the 20% band.  The tax code isn't relevant.