Does anyone know how the tax savings work for the cycle to work scheme? I understand the basics but I’m trying to figure out whether I should wait or not.
I currently pay 20% tax as my earnings are under 45k, but I’m due a pay rise soon and possibly a bonus later in the year, which may potentially put my earnings into the 40% range.
If I bought the cycle to work voucher now and paid it over 12 monthly instalments, would I only get the 20% tax savings even if my earnings went above the 40% threshold later? Or are the calculations made monthly? Or would I even have to wait until the end of the financial year before it’s recalculated?
I appreciate it’s a dull subject, so any help is appreciated!