my bike
your employers bike that they kindly lease to you, surely :)
CityCyclingEdinburgh Forum » Cycling News
Cycle to Work ins and outs
(49 posts)-
Posted 14 years ago #
-
/whistles
Its an energy consultant they are welcome to try and turn a profit on it....
Posted 14 years ago # -
Sorry, I should know better. Pedantry is down there with sarcasm
Posted 14 years ago # -
"Pedantry is down there with sarcasm."
Posted 14 years ago # -
Can someone translate that [the cyclescheme proposal] into English for me? thanks
Posted 14 years ago # -
Typical any government effectively kill something which actually benefits people but was initiated by a previous administration.
I wouldn't say that. It looks like a classic case of HMRC interpreting legislation by the letter (which to be fair is their job) rather than turning a blind eye and going with the spirit of the legislation. They do have a habit of doing this, no matter who is in government at the time.
Posted 14 years ago # -
Can someone translate that [the cyclescheme proposal] into English for me? thanks
I think cyclescheme will buy the bike from your employer probably for no fee then continue to lease it to you for the next 4 years at which point the fair market value drops to the 7% specified by HMRC. Though what i can't see is what the cost for the next four years will be since there must be some cost to keep HRMC off there back.
You'd think HMRC would have actual tax dodgers to go after.
Posted 14 years ago # -
Yes - the cost of the subsequent lease is the key detail missing from that Cyclescheme piece.
I fear that the bureaucracy is going to make the whole scheme somewhat unattractive. I got a healthy saving on my bike, but if I factor into the equation the restrictions of using the scheme (paying full RRP, rather than sale price, timing of the purchase, LBSs' understandable unwillingness to offer any additional discounts etc becasue Cyclescheme have already taken 10% from their sale price, potential split ownership issues if the bike costs more than £1k) plus the HMRC swerveball, I'd be thinking twice about doing it again.
Posted 14 years ago # -
I found it much easier to find the bike I wanted, then watch the shopping comparison websites until one came up in my size with a tasty discount...
Posted 14 years ago # -
Probably what i would have but for the fact that i didn't and still don't have the cash to stump up front. The cheap credit is a major attraction of the scheme, i suppose that element is still there but any possible saving has been boiled off by HMRC ruling.
I didn't intend to go in for a third year but if i were looking at it now i'm not sure i'd bother since most bike shops will still give 0% on sale items either that or there is the hard way (save up).
Posted 14 years ago # -
cheap credit is a major attraction of the scheme
I took matters into my own hands with a 0% for a year on purchases credit card deal and will pay that back in installments.
Posted 14 years ago # -
Thanks guys. Yes, it was the 'what happens for the next 4 years' bit that was confusing me. when i originally read the memo from HMRC my immediate thought was 'why can't i just lease it over 5 years?'. I guess many people don't stay at one job that long.
My employer will give a one-year interest-free loan, but its max £500. Had emailed a few weeks to ask if given the HMRC changes they might consider increasing max loan. No reply yet.
Posted 14 years ago # -
glad I got mine and paid it off, not going for another one (winter bike) as planned now
Posted 14 years ago # -
Posted 14 years ago #
-
From Twitter @carltonreid
Cyclescheme's HMRC Market Value Clarification leaflet:
"
Posted 14 years ago # -
Posted 13 years ago #
-
My company used to claim the vat back and stead of passing the saving on to us, they'd pocket it and use it to 'administer' the scheme. Won't be doing that now.
Just paid £70 for my mtb to be owned by cyclesheme for the next 4 years....
Posted 13 years ago # -
Thanks for resurecting this. I am about to participate in my employers second round of this, and I had conserns about how muc I would be expected to repay after a year. So am I correct in thinking that a small single figure percentage deposit is taken from the employee after a year, and the hire period is extended to upto 36 months whereby the value of the cycle reduced to zero.
Dave C
Posted 13 years ago #
Reply
You must log in to post.
posts
