So the first payment has come out my salary for the cycle to work scheme.
I have a £1000 voucher and my payment before tax is £70.94 according to my payslip.
I am a higher rate tax payer and thought my payment was going to be £45ish a month! Is this correct!?
Is it that my overall tax deduction is 40% less than it should be on the £70.94 or am I being shafted!!
HR bod who looks after this is away at the mo
MM
You have a voucher for £1,000. You're paying it back at £70.94 a month, out of untaxed income. The amount of income on which you are being taxed is reduced by £70.94 each month.
You aren't paying tax on the money you're using to buy the bike, making each pound used for the purpose worth c.40% more than it otherwise would be. 🙂
as per BD - your take home salary will have gone down by £70 - 40%.
That's alright then 😀
Just not broken down at all on payslip.
Now if only my bike would come in stock!! A Darkside Dandyhorse
Cheers
MM
EDIT. Just found an online calculator which says it's £70 -40% tax -11% National Insurance. BARGAIN