So an email gets sent out the Bicycle User group where i work which back in august which states
As you may be aware, the HMRC have published new regulations around the buy back value of all bikes purchased under the cycle to work scheme.To view a copy of the updates please visit http://www.hmrc.gov.uk/manuals/eimanual/EIM21667a.htm).
Cyclescheme has been developing and testing a simplified 'Condition Assessment' (CA) process. The aim of this process is to provide evidence of the condition and value of the bike at the time of offer of sale.
Cyclescheme will be phasing in the Condition Assessment process by applying it to all vouchers 'requested' [b]after Thursday 30th September 2010[/b]. Vouchers 'requested' prior to this date will be subject to the existing Cyclescheme market value process.
We will update you with more information as and when Cyclescheme release this to us.
Quite a few people then start ordering vouchers so they can take advnatge of the old 5% Fair market value.
I then check the work cyclescheme page and it says
Cyclescheme has launched a new Market Value process in response to the August 2010 HRMC Employment Income Manual updates.This process is effective immediately for any schemes where the initial “Hire Period” ended after 6 August 2010.
I ask cyclescheme to clarify this situation seenig as lots of people ordered vouchers thinking they would get the 5% applied.
to which i get
Due to an update by HMRC we were originally advised that any vouchers requested before September 30th would fall under the historic 5% market value guidelines. However due to a further update we have had to backdate to August 6th. Any hire periods ending after this date will fall under the new market value guidelines.
queue lots of annoyed people
hmm.. no one affected by this?
By the sounds of it my place effectively stuck two fingers up at HMRC and said staff had been told 5% last year so that's what we're doing this year. Final 5% came out of my wages last month.
Is there much point to CycleScheme now?
'Call me Dave' might just as well have cancelled it tbh
I bet most can nie on save the 13odd% they can save with the scheme now with their LBS/by shopping about on-line/end of year deals
and most people can get a 0% CC for a year so job done
Can't see many using it in 2011
That's the thing. My employers have decided that the whole thing is now dealt with the cyclescheme. It used to be we had the contract from our employer but now the whole thing is handled by cyclescheme.
i've emailed them several times about this and they say they can do nothing about it. They haven't even informed people of the changes or how it will affect them.