Does anybody know if the final valuation of 25% of the bike’s purchase price applies to people on the scheme before September 10 ?

Got the answer I did’t want ! So I saved £50 on RRP

Thank you for the info.

Yes it will do. Search for the previous threads on this, there’s lots of discussion of the options within them.

Just got my final valuation today – 5% of the ticket price – not bad!

let the firm carry on owning the bike for another year or two. It’s paid for, so no more cost to you. Buy it back when it’s depreciated a bit more…

got a bike on order. My company has a 3 year lease policy by default to let it depreciate a lot. I think reccommmended is something like 8% after 3 years. Can extend it too if I want.

yeah, there’s no need to buy the bike. just let your work continue to own it and watch it depreciate while paying nothing in the meantime

just paid 6%.

I had to pay 5% which I thought was ok

AFAIK if you are dealing with Cyclescheme and they are facilitating the whole process if you ‘requested’ your voucher prior to Sept 20th 2010 then you will still pay the 5% as that is the date that Cyclescheme and HMRC agreed to the phasing in of the new higher rates.
Thereafter you can lease the bike from your employer for the 12 month period then transfer it in to Cyclescheme’s name for a further 25 months whereupon the value will fall to the lowest transfer/disposal percentage.

I did receive an email from Cyclescheme whilst I was on leave re. the final payment but I’ve yet to read it fully.

Cheers

Paul.

My company runs a 3 year scheme (through Cyclescheme), my understanding is that bikes over £500 are valued at 12% after 3 years (£120 in my case), but anyway its better to pay the Tax and NI on £120 than the whole £120.

If a cycle is transferred to an employee at a nominal value (say 5 to 10% of the original retail price), then if the market value is higher, the employee will be taxable on the difference. See EIM21667a for details of an optional simplified approach to valuing cycles sold after the end of a loan/ salary sacrifice period.

You need to have the bike for 6 years for the value to be “negligible”.

http://www.hmrc.gov.uk/manuals/eimanual/EIM21667a.htm

or the company give you it as a benefit in kind 😉

Just had my final valuation under the new rules. 30 quid on a 1k purchase.

Not sure on the rules, i’m guessing they are transferring for free and paying tax only on the 25% valuation in the HRMC guidelines.

I was under the impression it was just the tax on the 25% value you paid. Could be wrong mind I often am

My question is if you bought the bike through the scheme and paid it off in full 5 years ago then you are not liable for tax?

also cyclescheme say that you are allowed to take off maintenance costs

so add up all the new tyres, tubes, chains, brake blocks you get through…

Not sure on the rules, i’m guessing they are transferring for free and paying tax only on the 25% valuation in the HRMC guidelines.

You either pay market rate to transfer title and incur no tax…

or

You take title for a value lower that market value and then you would pay tax in the difference between the two….. as that would be a benefit

depends on what your employer is choosing to do..

Si

i heard a rumor that the 25% needed to be assesed by an expert within your company.

ask who has decided it is worth 25% and offer a lower figure.