There was a brief bit on the tightening up by the IR of the Cycle to Work scheme rules. See MoneyBox site on radio 4 to hear. Missed the point that this is meant to encourage people to commute by cycle and just just an IR thing. It should give a substantial discount to those buying bikes through the scheme.
CityCyclingEdinburgh Forum » Debate!
Moneybox - Cycle to work
(2 posts)-
Posted 13 years ago #
-
It should give a substantial discount to those buying bikes through the scheme.
It did, we all bought them and now Revenue and Customs want to tighten the scheme as they see it as too generous. I recollect the same thing happened with company cars and indeed they did it to me with my bus-pass. I saved the authority money by buying a monthly pass but HMRC suggested it was a perk as they assumed I used it for non-work journeys. A fair kop. In a good natured exchange they accepted that the bike I used to go to work was not a perk as it was definitely my legs pedalling it and I had other bikes for non-work related journeys. Indeed in the original Bike toWork Scheme as we have debated in the past - it only has to be the principal use of the bike [ie you could use it at weekends] and not be enfringing on the deal.
However, HMRC have the powers to change their mind and indeed have the powers to retrospectively charge you [I think it goes back 7 years?]. So it is unfair if you enter a scheme under one set of conditions but leave it under another. But HMRC make up the rules. Your employers interpretation of the rules here can be important. Plus as you say the new scheme is no better than a 12 month interest free deal in a shop.
Posted 13 years ago #
Reply
You must log in to post.
posts
