Cyclescheme/Salary Sacrafice

[Downward]

Anyone know anything about this regarding Tax/NI relief ??

I pay £49.91 per month through the scheme (Total purchase £600 ish) but I can't see where I am getting Tax/NI relief on this figure.

Our payroll are unhelpful and I am already in dispute with them over childcare vouchers.

Can PM someone who is a wages/finance whizz with my figures if required

Ta

 

[HelenD123]

As I understand it, your Cyclescheme payment should be deducted before your Tax and NI are calculated. They are calculated on a lower figure, hence you make a saving.

 

[Downward]

So I reckon I am saving £17 ish out of £50 or about 35% ?

 

[HelenD123]

So I reckon I am saving £17 ish out of £50 or about 35% ?

That sounds about right. It varies depending on whether your employer can reclaim the VAT. You can do a rough calculation on the Cyclescheme website

 

[ChrisKH]

Depends if you're a basic rate tax payer or not, I would have thought. Top slice of a basic rate taxpayer would give a saving of around 20% tax + 11% NI or 31%. So it's in the region you are talking about.

 

[skwerl]

that 49.91 is the amount deducted from your gross salary. so the net amount you actually pay is 49.91 minus the tax. if you pay upper band tax then you deduct 41% from 49.91 (29.45). if you pay lower band you only save the 22% tax and not the extra 1% NI. you don't see the full 11% NI saving as NI is capped. You only save the extra 1% uncapped NI

edit: that does depend on how much NI you pay though