is c2ws now pointless

[Fiona N]

If you have your own business you can ditch 90% of the hassle bits of the C2W. Simply get the company to buy a bike for each employee (company credit card, or personal CC and expense claims), which it lends indefinitely to the employee without any tax implications.

Company can pay for all maintenance, repairs and upgrades.

Then after 3-4 years, company disposes of bike for token sum in line with HMRC guidelines.

The only tricky bit is the capital allowances and depreciation which unless you've already used it you can probably offset 100% of the cost against any profits using an Annual Investment Allowance.

Simples!

Rufus (with a 3 year old company provided Spesh Sirrus that will be disposed of shortly).

I did this when I was doing a lot of consultancy for a Swiss organisation - bought a (fairly cheap) bike in the UK, took it to CH to keep in the office there for commuting between office and hotel etc. when working and after about 6 or 7 years wrote it off (as in for tax purposes, not physically). Accountant had no problems with that as my company doesn't have much capital expenditure and depreciation from year to year.

 

[mr_cellophane]

Does the company keep the balance they sell it to you for ?   If so, isn't that all profit for them (less the loss of interest on the loan) ?

 

[Norm]

Does the company keep the balance they sell it to you for ? If so, isn't that all profit for them (less the loss of interest on the loan) ?

Yes. Last time I worked it through, with savings of VAT (if it is reclaimable) and e'ers NI, the company will make about 30% of the sale price through tax savings and the 5% sale price which was the norm would cover the 12 months interest payments on the capital purchase. There'll be all sorts of tax savings as well, if your company is profitable.

With all of the admin which many third party (like cyclescheme) require, I reckon that 30% would be soaked up in extra overheads anyway, so the company won't be seeing much reward for their efforts.

 

[TheBoyBilly]

My Halfords deal is nearly finished now and yesterday a letter arrived advising me that a £235 levy was being asked for should I wish to take ownership of my Brompton now (for an £800 voucher). It also advises me that I can let the company keep ownership until a later date ( say 4 years hence) and then the levy will reduce on a sliding scale and the bike will then become my property. This I am going to do ( there is the other option of just taking the bike back to halfords but I love my Brommie )
As a fellow 'scheme addict' I wonder if Greg Collins is going to buy another bike on the scheme? I am after a bike for sportives next year but I think I will do a cash deal on either a Basso or Giant with whatever I can squeeze from a dealer rather than Ride2Work it again.

Bill

 

[TheBoyBilly]

Further to my last post, I've just contacted my HR Dept to ask them to defer ownership of my bike. They have informed me that they won't be carrying on with the scheme as there is so little saving to be made, and the copany really don't want to get involved with owning loads of bikes until after a four or five-year wait.. Well done HMRC.

Bill