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Cycle to Work Saving
nirish
Posts: 306 Forumite
in Cutting tax
I'm considering a £3k bike on the cycle to work scheme.
The calculator quotes me 40% tax saving of £1200, NI saving £60 and then £210 ownership fee to pay.
So I pay £1950, 35% total saving.
However I earn between 100k and 125k so I lose my personal allowance after self assessment and effectively pay another 20% tax in this threshold.
Does this mean I save 60% tax on the bike? This would have me paying £1350. Am I right? This seems too good to be true!
The calculator quotes me 40% tax saving of £1200, NI saving £60 and then £210 ownership fee to pay.
So I pay £1950, 35% total saving.
However I earn between 100k and 125k so I lose my personal allowance after self assessment and effectively pay another 20% tax in this threshold.
Does this mean I save 60% tax on the bike? This would have me paying £1350. Am I right? This seems too good to be true!
0
Comments
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It would appear so, plus the 2% NIC. There are various conditions for the benefit to be exempt (section 244 ITEPA 2003). I can't find anything on the internet that says this in black and white, though (it does make the point regarding pension contributions).0
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