Forum menu
Does anyone know if there is an easy way to calculate your monthly cycle to work payments? I ask, as if I recall correctly the deduction show on your payslip isn't the actual amount you pay.
I was in a scheme with my old employer but I left after making 8 months worth of payments, and the remaining amount owed was taken out of my net pay, which is fine as I knew this would happen. A year later I've now been asked to make a final payment to extend the agreement, so I'm just trying to work out how much I'll actually have paid for the bike.
There's a calculator on the Evans website, no idea if that will actually be of any help?
[url= http://www.evanscycles.com/ride-to-work/savings-calculator ]C2W calculator[/url]
Cheers andyh.
My monthly deductions according to my payslip were £60.69, but I don't think this includes the tax break...
It should have been explained to you before you applied. Its quite likely your payslip deductions are 1/12th of the bike cost, assuming a 12month agreement. Savings come from the fact you now are getting paid less so get taxed less, there are potential implications tho such as pensions, you should really discuss with your HR/finance if this is not clear to you!
The only figure which can be given accurately is the gross deduction, which sounds like it's £60.69 in your case.
The actual amount of net salary you would have missed out on as a result of that depends on your individual tax circumstances, but for most people there would be an income tax saving (20 or 40% depending on what tax bracket you were in) and NI contributions (lots of rates depending on circumstances).
A £60.69 salary sacrifice, assuming "standard" everything else, in the current tax year, would equate to:
£60.69-£12.14 tax-£7.28 = £41.27 nett salary sacrifice for a basic rate taxpayer
£60.69-£24.28-£7.28 = £29.13 nett salary sacrifice for a higher rate taxpayer
The rates were actually the same last year, thresholds different, but the above would apply if you earned over c. £11k and under c. £150k assuming no other unusual circumstances.
[i]It should have been explained to you before you applied. Its quite likely your payslip deductions are 1/12th of the bike cost, assuming a 12month agreement. Savings come from the fact you now are getting paid less so get taxed less, there are potential implications tho such as pensions, you should really discuss with your HR/finance if this is not clear to you![/i]
Oops, late reply but cheers Stato.
I was given the actual figure on the paperwork, but moved house twice last year and I'm buggered if I can find it now. I'm a basic rate taxpayer and the scheme with my old employer was run over 18 months, rather than 12.
Cheers Drover. I could recall the nett sacrifice being in the region of £40 something, so if calculating the nett sacrifice is just to deduct 20% from the gross, then that should give me a fair idea.
Cheers Drover. I could recall the nett sacrifice being in the region of £40 something, so if calculating the nett sacrifice is just to deduct 20% from the gross, then that should give me a fair idea.
No problem. Deduction is 20% tax and 12% NI, for most people.