Cycle 2 work

[Black knight]

ARSE

Cancelled for me. Bloody annoying as I've been holding out for it and am in need of a new steed.


Good Morning Richard,



Unfortunately the cycle 2 work scheme will not run again this year. This is due to recent changes by HMRC, until Network Rail fully understands the implications the changes will have on our employees we have decided not to run the scheme whilst we review the impact. There will be details going on connect over the next few days and more information on any future schemes will not go on connect until early next year.

 

[amnesia]

Understandable TBH.

I am expecting my company to not offer a C2W scheme in January

 

[bigsean]

MY company said they'd never heard of cycle2work scheme, so i set about educating them.
1st my allocation manager, i'll look into it he says....... next, my traffic manager 'never heard of it' ........... then payroll at head office! surely they'd know if it was something the company did or could do... 'sorry dont know what your talking about'....... Finally human resource dept, they said 'yes we know of the scheme, but we're undecided as to whether we want to enter into it'
what the hell is that all about lol


Anyway sod em, 3weeks later, and £200 on my claud butler urban 100 hybrid, and loving it

Hope you get your new wheels soon black knight

 

[AlanW]

Since the scheme has been revised, its worth considering to be honest. The saving are no where near as good as when it first started.

Its just a 12 month interest free loan now, nothing more!

 

[Cyclist33]

Unless you got in before the watershed which was only last week, in which case it was still the 5% payment to buy at the end of the scheme.

This was well publicised and I don't really understand why more employers AND employees didn't get in on it by then, instead of speculating and moaning about the coming changes.

Stu

 

[mercurykev]

My work just revised the scheme to deliver similar savings with the greater final payment. This is being achieved by reducing the monthly payments. A £1k bike will cost £760, which isn't terrible.

 

[Cyclist33]

Surely they'd still be liable for the tax though?

 

[Norm]

Surely they'd still be liable for the tax though?

Oh dear oh dear oh dear.

If those on here (who have all the benefits of the search function) are so mis-informed, it's no wonder that companies are closing their C2W schemes.

 

[2Loose]

Oh dear oh dear oh dear.

If those on here (who have all the benefits of the search function) are so mis-informed, it's no wonder that companies are closing their C2W schemes.

LoL, a bit worn out by the incorrect c2w comments Norm (and slap me if I ever got it noticeably wrong, I do learn...in the end )

Cyclist33, I am guessing the 5% you refer to is for your company scheme, as it was never 'supposed' to cost only 5% at the end of the 12mnth hire. I think the HMRC guidance always stated 'fair market value'.

Bigsean, what was your HR dept. doing deciding on a Finance decision? Sounds a bit random tbh.

Mercurykev, glad your company actually read and acted on the new(er) guidance. It's quite a good saving all round, interest free credit and a saving of 240 quid on a grand. Enjoy!

 

[willm]

We are only a small company but the understanding is that if we need to (if HRMC ever come to our door about it) we will pay the emplyee a one off bonus that just happens to match the 'fair market value' of the bike. It means you get the 40% or what ever of the savings.

Other than the admin it doesn't cost the company anything so I can't see why this wouldn't work for others as well. Afterall its about encouraging your employees to cycle to work not to make money from by selling on ex-hire bikes. isn't it?

 

[2Loose]

We are only a small company but the understanding is that if we need to (if HRMC ever come to our door about it) we will pay the emplyee a one off bonus that just happens to match the 'fair market value' of the bike. It means you get the 40% or what ever of the savings.

Other than the admin it doesn't cost the company anything so I can't see why this wouldn't work for others as well. Afterall its about encouraging your employees to cycle to work not to make money from by selling on ex-hire bikes. isn't it?

HMRC will only want the tax from the 'fair market value' ultimately, so on 25% of a grand of bike then this should be less than a hundred quid all in...which is how my employers have done it for this current year.

An even nicer way that has also been discussed on here before, is to extend the hire period to say 5 years, with no payments at all over the final 4 years, therefore lowering the final market value to something really tiny.

 

[fossyant]

My employer has suspended the scheme, quite rightly, as our Local HMRC folk are insisting on valuations from bike shops before an employee can take ownership. I just finished my scheme fortunately.

We currently offer salary sacrifice for car parking and train/bus travel so it's not 'environmentally fair' that bikes aren't considered. To avoid this mess, my employer is thinking of offering interest free loans for bikes - which is good and you can be flexible about where you shop/get cash deals etc.

 

[ChrisKH]

We are only a small company but the understanding is that if we need to (if HRMC ever come to our door about it) we will pay the emplyee a one off bonus that just happens to match the 'fair market value' of the bike. It means you get the 40% or what ever of the savings.

Other than the admin it doesn't cost the company anything so I can't see why this wouldn't work for others as well. Afterall its about encouraging your employees to cycle to work not to make money from by selling on ex-hire bikes. isn't it?

With the best of respect, willm, if HM Revenue & Customs come knocking at the company door they will (try) and go after the individual for the benefit but more importantly they will go after the company for failing to make the correct return on form P11d. The potential fine is something ridiculous like £2.5k or £3.5k per P11d wrongly filled. I'm sure they will settle for less, but it won't be as simple as just "paying a bonus".

 

[ChrisKH]

Oh dear oh dear oh dear.

If those on here (who have all the benefits of the search function) are so mis-informed, it's no wonder that companies are closing their C2W schemes.

Come on Norm, it takes ages to research things on t'internet and this particular subject is not that clear.

I did read a very good article on C2W schemes yesterday which covered final payments being deemed acceptable if you use the percentages published in the Revenue's "Employment Income Manual ". E.g. a cycle costing £300 rented over a 2 year period would have a deemed acceptable (no tax charge will arise) market value of £39.

If anyone wants the article send me a personal message with your e-mail address and I'll send a scanned copy. But beware, a friend said I blow up his computer with my pdf's!

 

[Cyclist33]

http://www.cyclescheme.co.uk/employer,intro.htm

We are with Cyclescheme and as far as I can tell the "old" system was fixed at 5%.

Stu