C2W Choices - Help!

[bpsmith]

So how does it work, with respect to buying components rather than a complete bike?

I always thought that wasn’t an option?

 

[PK99]

Some people need to give their head a wobble.......the amount of tax relief given to rich and famous, big business and MPs. Your scoffing at a guy whos getting a small amount of tax relief on c2w scheme.

So you can scoff some more.......i was getting a mountain bike for winter training. But instead im choosing between sram etap and zipp 302s instead. Why?? Take advantage of the scheme while we still can and hmrc allow you to do so.

Thank you

Ps i do c2w but not on the bike im upgrading

so, you don't need to use the scheme but are willing to abuse it and risk depriving those who do?

I suppose it's all down to personal morality.

 

[jowwy]

so, you don't need to use the scheme but are willing to abuse it and risk depriving those who do?

I suppose it's all down to personal morality.

My company provides the money and I pay it back.....who am I depriving????????

 

[PK99]

My company provides the money and I pay it back.....who am I depriving????????

you pay less tax. that is the whole point of the scheme.

 

[jowwy]

you pay less tax. that is the whole point of the scheme.

I'm sure the taxman can do without the pennies I'm saving, especially as I'm abiding by their rules of purchase. As they now allow you to buy components to upgrade your bikes............

 

[User33236]

I'm sure the taxman can do without the pennies I'm saving, especially as I'm abiding by their rules of purchase. As they now allow you to buy components to upgrade your bikes............

... just not their rules on useage as you must use your Cycle to Work kit at least 50 per cent of the time for work-related journeys. Although in the real world nobody is going to follow you round and check.

The problems potentially come about if HMRC decide enough people are not complying and they choose to withdraw the facility thus depriving genuine users. Pretty big if I know but there's alway that risk.

I bought a C2W bike a number of years ago and realised after a few rides that the roads on my commute and said bike weren't a good match. I then kept that bike for weekend rides and went out and purchased another bike that cost more than the original but was better suited.

 

[PK99]

...

The problems potentially come about if HMRC decide enough people are not complying and they choose to withdraw the facility thus depriving genuine users. Pretty big if I know but there's alway that risk.

.

I know loads of club cyclists with a stable of bikes who have bought an n+1 on C2W that never sees a commute.

 

[User33236]

Except the HMRC rules (as referenced above) also say that the scheme must be open to all staff - including those who may not be able to commute by bike for various reasons. If @jowwy, like me, works from home then he is behaving in line with the rules (which are contradictory in what they say).

I’d suggest that you and @PK99 might want to check the ‘holier then thou’ attitudes.

As stated above I owned a C2W that barely saw work so do not know why you feel I have a holier than thou attitude.

I’ve also stated earlier on the thread my thoughts that the current system is unfair and should be designed to help those on lower pay most.

 

[User33236]

I know loads of club cyclists with a stable of bikes who have bought an n+1 on C2W that never sees a commute.

I’m one with a number of bikes whose C2W one barely saw the place as stated above.

 

[jowwy]

... just not their rules on useage as you must use your Cycle to Work kit at least 50 per cent of the time for work-related journeys. Although in the real world nobody is going to follow you round and check.

The problems potentially come about if HMRC decide enough people are not complying and they choose to withdraw the facility thus depriving genuine users. Pretty big if I know but there's alway that risk.

I bought a C2W bike a number of years ago and realised after a few rides that the roads on my commute and said bike weren't a good match. I then kept that bike for weekend rides and went out and purchased another bike that cost more than the original but was better suited.

As i use various bikes from my arsenal available.......then all my c2w kit will get used for that purpose through the year......even the 6k synapse himod with sram etap

 

[PK99]

Except the HMRC rules (as referenced above) also say that the scheme must be open to all staff - including those who may not be able to commute by bike for various reasons. If @jowwy, like me, works from home then he is behaving in line with the rules (which are contradictory in what they say).

I’d suggest that you and @PK99 might want to check the ‘holier then thou’ attitudes.

I suggest you read the following section of the HMRC guide.

4) Scope of tax exemption
The exemption removes the tax charge that would otherwise apply to cycles and
cyclists' safety equipment loaned to employees provided the following conditions are
met
 Ownership of the equipment is not transferred to the employee during the loan
period;
 Employees use the equipment mainly for qualifying journeys;
i.e. for journeys made between the employee’s home and workplace, or part of
those journeys (for example, to the station), or for journeys between one
workplace and another.

 The offer of the use of a loaned or provided cycle (i.e. one for which
ownership is not transferred to the employee) is available across the whole
workforce, with no groups of employees being excluded. This does not
necessarily have to be through a Cycle to Work salary sacrifice arrangement.
The tax exemption only applies when an employee mainly uses the cycle and cyclists'
safety equipment for qualifying journeys. A qualifying journey for an employee
means a journey, or part of a journey,
 between his or her home and workplace, or
 between one workplace and another,
in connection with the performance of their duties of employment. So, for example,
cycling to and from the station to get to work would qualify. In this case, 'mainly'
means that more than 50% of use of the cycle and safety equipment must involve a
qualifying journey.
Employees are not expected to keep mileage logs but employers should make clear to
them that if they do not use the cycle mainly for qualifying journeys, they may lose
the benefit of the tax exemption. In that event the employer would have to report the
benefit in kind on form P11D, and account for Class 1A NICs, in the normal way. The
employee would be liable for the tax due on the benefit in kind.

 

[User33236]

As i use various bikes from my arsenal available.......then all my c2w kit will get used for that purpose through the year......even the 6k synapse himod with sram etap

I’ve even used my top spec bike on a cycle to work on nice summer days even extending the outward ride to 50 miles or so.

 

[MrGrumpy]

C2W is the new golf instead of swanky golf clubs being bought it’s now bicycles worth more than a small car ! Only issue is they never get ridden to work, most are slung onto a bike rack and driven somewhere lol! Ok I’m jesting on the bike rack thing but the point stands , a massive leasure industry with millions being pumped in persuading 40 something’s to slip into Lycra and get riding bikes. I see and have witnessed some right spendy bikes at CX races with the riders blowing out there hoops , cant buy ability lol . However I suppose if it gets peep s if their harris then what’s not too like .

Ps completely off topic but not far from the truth

 

[adscrim]

And I suggest you read the HMRC Employment Income Manual chapters that deal with C2W linked to above. The HMRC EIM specifically states that the C2W Scheme must be open to all staff - including those who cannot actually commute by cycle - otherwise the tax exemption won’t apply to anyone.

I think the 'Scheme' is where a bicycle and/or associated equipment is available for employees to use. The tax exemption only applies where those assets are mostly used for qualifying journeys. ie you can have access to the scheme without taking advantage of the tax exemption.

 

[adscrim]

There is nothing in the EIM ( the relevant ones being EIM 21664, EIM 21665 and EIM 21666) that suggests that. The EIM are clear: for the employment income exemption to apply, the scheme offered by an employer must be open to all staff.

EIM 21665 deals with the issue of qualifying journeys raised in EIM21664:

"Examples of exclusions from cycle provision that would prevent the exemption from applying include the following:

• Exclusion of temporary employees (except for where periods of employment are very short or casual as outlined above)
• Exclusion of employees simply because they are in their probationary period
• Exclusion of employees who are able to use a cycle but who may not be able to choose to use a cycle to commute. This category may include, for example, employees who use a motor vehicle to transport equipment and employees for whom living accommodation is provided at the workplace. The exclusion of employees who cannot opt to commute by cycle from the offer of a cycle would prevent the exemption from applying. However, as long as cycles are available generally to employees, the provision of cycles to some employees who cannot meet the condition about the type of journeys for which the cycle is used, will not prevent the exemption from applying to those employees for whom the usage condition is satisfied."

Nothing except the distinction between those who can make use of the provision and those who can also make use of the exemption?

And this from 21665

"For example, an employer has 100 employees and offers to make loaned cycles available to any of those employees who apply. 30 employees take up the offer and for 28 of them, the main use of the cycle is from home to work. The other two are not able to use the cycles for travelling to work or between workplaces and therefore do not qualify for exemption. But their failure to use the cycles for qualifying journeys has no impact on the tax treatment of the other employees and therefore the provision of the cycles still qualifies for exemption from tax for the other 28 employees."