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my cycle to work agreement is to end soon.i email the woman at my work so i could tryand work out how much i was going to need to "buy back" the bike from my company.
this is the response...
"I have received notice from Halfords that they have been advised by the HMRC that the “buy back” policy has to change. There are three options of which we will have to decide which to adopt. As we where only notified 2 days ago I haven’t had chance to discuss this with the Finance Director"
anyone else had this?it doesnt bode well i think, unless there is a slim chance they will just "give" me the company asset for free!(fingers crossed) 😉
Loads of threads on this - with equally as many opinions on whether or not you need to bend over
As far as I can make out, the best option is for the employer to give you the bike and you pay the tax an NI on the notional value (25% of the original price) of the bike.
this might be of interest...
[url= http://www.guardian.co.uk/money/blog/2010/aug/28/cycle-to-work-scheme ]Guardian article[/url]
We had this at work last week. But, the team here that run it have spoken to HMRC and they have given a transition peroid where anyone that gets a bike on the scheme before Sept 30th will be able to use the old FMV process (5% of the voucher value plus VAT). So, we're kind of lucky here. Anyoen getting abike after than should really just consider it a loan rather than a cheap way of getting a bike.
Our scheme still works out at 35% discount on £1000, not to be sneezed at 🙄
C2W just being introduced at work, did the online calculator thing and the monthly payments x12 equalled the voucher price for the bike, why would I have to pay anymore for it then?
this might be of interest...Guardian article
typical guardian rubbish and inaccuracy...
"It allowed cyclists to buy a new bike from gross income, through their employers under a type of hire purchase agreement"
c2w is specifically not buying and not a 'type of hire purchase'..
as for the HMRC issues, hope they sort all this out