How strict is Cycle to Work?

[Niche]

My work place do not offer the cycle2work scheme but my wifes does. I am desperate for a new bike.

If my wife applied and bought a bike for me on the pretence of it being hers would her workplace really find out, would they care?

I know you are supposed to use it to cycle to work on which she has no intention.

Is this fraud?

Yes it is fraud
Not worth the risk
Bikes are really not that expensive

 

[addictfreak]

Christ! Some of you must be frightened of your own shadow.

If your like me, I have worked all me life right from leaving school never claimed a thing. Dont you deserve a little something? Or are you going to let all those 'poor' people have it all. You know the ones I mean, the ones who cant afford to live but have cable TV, 4 mobiles phones and a Subaru.

 

[Downward]

Anyway what are they going to do ? Ask you if you cycled to work ever ?
Even if they did you would just say yeah I cycled on Xday 3 weeks ago.
I have never been asked and haven't even been asked about my 2nd time signing upto the scheme.
The bike I put on the form won't be available anyway as I couldn't put a price or model as the 2010 models prices and specs are not out yet so I just said Bike X at £1k.

The bike I was supposed to be getting last time was out of stock for 6 weeks so I got a different one too.

 

[addictfreak]

Downward

Your right mate. It purely about the voucher price, no one ever checks what you have bought. Im lucky enough to have 3 bikes, only one on CTW. At work no one would have a clue what bike im on or how much it cost.
All we have here are the anally retentive, who are scared to do anything. No wonder we are breeding a nation of losers!

 

[Panter]

The end result is the same isn't it? - the Gov't has subsidised another bike on the road and where's the harm in that?

As many people as possible should take advantage of this scheme before they realise it's actually something good and useful and therefore kill it.

+1

 

[VictorL]

But its like lending £50k and getting back £60K in 12 months.

How do you work this out?

 

[asterix]

But could you get your moat cleaned?

 

[Downward]

How do you work this out?

Savings on NI contributions.

 

[youngoldbloke]

Given the huge loopholes apparent, why not just open the scheme to everyone, or rather invent a new scheme, that would give similar advantages to pensioners, self employed, unemployed (- enabling them to 'get on their bikes' more cheaply!) etc, etc. We already have 'exercise on prescription', why not 'bike on prescription' - BOP. The health and environmental benefits of introducing such a comprehensive scheme would surely outweigh any costs to the exchequer.
Anyway, being one of the retired, I am really p....d off that I can't get a new £1000 carbon bike for £600. How about a shady (and no doubt illegal) scheme for surrogate BTW applications to benefit the likes of me?

 

[VictorL]

Savings on NI contributions.

Don't think it would be £10k saving on NI contributions - but regardless, a company would still need to find the £50k and at the moment, cash is better in the bank for a lot of businesses.

 

[nosherduke996]

The scheme is totally unfair anyway as the more you earn, the more discount you are entitled to.And God forbid you should be self employed then you have got no chance.
As usual its all take and no give by the goverment.

 

[Typo]

Savings on NI contributions.

And add on capital allowances, if your employer pays Corporation tax.

 

[nigelnorris]

I've seen self employed people mentioned in this thread a number of times, and can't help thinking that they [mostly though of course there will be exceptions] will have no need of this. Surely if you are self employed or own a company then you can claim a commuter bike as a business expense, and the tax write down over 3 or so years would be as much as the C2W scheme savings anyway?

I know this will cause arguments, but when it comes down to the unemployed an awful lot of people [me included probably but I've not really thought it through], are going to baulk at the thought of giving them bicycles for effectively nothing. If a person is claiming benefits then the only way to pay for a bike is either to up his/her benefits or just give him/her the thing. Either way it's the taxpayer doing the work, in a very different way from an employed person taking advantage. Fine, make a bike a signing on bonus when a person gets a job if it would be useful for the commute, but to just hand the thing over as a gift doesn't seem right [to me, at the moment, though I haven't really put a lot of thought into this].

On a separate issue, and this is a genuine question, - [Disclaimer, don't know anything really about business accounting, this is just thinking out loud], don't employers who sign up for the scheme get the same tax breaks, thus enabling them to get a substantial return for their investment anyway. On a £1000 bike they get the VAT back [assuming big enough to be VAT registered which they almost certainly are if they employ enough people to justify starting a scheme], then they get to write down something like 1/3 of the value of the bike against tax during the year of the lease. So they make something like £100 on the deal as a rebate from the taxman?

 

[Downward]

Don't think it would be £10k saving on NI contributions - but regardless, a company would still need to find the £50k and at the moment, cash is better in the bank for a lot of businesses.

Sorry its 9% ! which is £5k ish !

 

[Downward]

I've seen self employed people mentioned in this thread a number of times, and can't help thinking that they [mostly though of course there will be exceptions] will have no need of this. Surely if you are self employed or own a company then you can claim a commuter bike as a business expense, and the tax write down over 3 or so years would be as much as the C2W scheme savings anyway?

I know this will cause arguments, but when it comes down to the unemployed an awful lot of people [me included probably but I've not really thought it through], are going to baulk at the thought of giving them bicycles for effectively nothing. If a person is claiming benefits then the only way to pay for a bike is either to up his/her benefits or just give him/her the thing. Either way it's the taxpayer doing the work, in a very different way from an employed person taking advantage. Fine, make a bike a signing on bonus when a person gets a job if it would be useful for the commute, but to just hand the thing over as a gift doesn't seem right [to me, at the moment, though I haven't really put a lot of thought into this].

On a separate issue, and this is a genuine question, - [Disclaimer, don't know anything really about business accounting, this is just thinking out loud], don't employers who sign up for the scheme get the same tax breaks, thus enabling them to get a substantial return for their investment anyway. On a £1000 bike they get the VAT back [assuming big enough to be VAT registered which they almost certainly are if they employ enough people to justify starting a scheme], then they get to write down something like 1/3 of the value of the bike against tax during the year of the lease. So they make something like £100 on the deal as a rebate from the taxman?

It's not a gift we still have to pay for it we just get tax relief. It's the same as childcare vouchers.

Anyway with all this commuting to work they should pro rata my car park pass because I still have to pay for this even if i drive in once in a blue moon.