My work has said they won't sign up to any of the 'Cycle to Work' providers (such as Cyclescheme or Ride2Work etc), they don't reckon enough people would take it up (small business, only 30 odd staff).
So... I was wondering... thinking laterally if you will 😆
As a store manager, I have a shop credit card. If I was to purchase a bike using this (with the agreement of my manager obviously) and then pay it back over 12 months via salary deduction, would I/they be able to take off the VAT and pay it out of my pre-tax income (which is all the 'official' schemes do, right?), thus getting me a £1000 commuter mucho cheaperer?
cheers 8)
Thats what I've done for the last of my three bikes and two for my work mates.
Just make sure you get yourself a good contract written up (can send you a copy of mine) and that everything is above board on your accounts side.
If anything, your scheme is better for your company and the bike shop - Cyclescheme et al take a cut of the sale price
so it's perfectly legal and feasible? schweet!
Is my reading of the regulations correct, ie.
1) Company purchases bike for me (by allowing me to use store card). They then pay this off as normal, which I assume is full balance each month
2) They claim VAT back off bike and I agree to pay back the remaining amount (approx £850) over 12 months (does it have to be 12 months btw?)
3) They take £71 odd per month from my pre-tax income and then I pay tax on the rest of my income as usual?
Is this all correct?
Sounds right to me. Don't forget you will also need to make a "fair value" payment at the end of the scheme to buy the bike off the company as yuo are only leasing it during the 12 months.
AFAIK the period can be less than 12 months but your deductions must not cuase your take home pay to drop below the minimum pay level
This is what my company do, much easier to administer and better for discounts etc. If you want, I can ask the accountant if he'll email you about it.
that would be brilliant if you/he could 🙂 Would make it easier to explain to my accounts team I'm sure.
The more I looked into it the less I could see that cyclescheme and the others were actually doing for their 10%. If there had been more willing at my place to set up a scheme I may well have tried to sort something out directly with some local shops.
You're lucky. A mate of mine keeps missing out on the C2W scheme, as he has to enter a 'lottery' at his work (big place). They only operate it every 6 months. Some folk have been abusing the scheme; one bloke has bought 3 bikes in the last 18 months...
A mate of mine keeps missing out on the C2W scheme, as he has to enter a 'lottery' at his work (big place). They only operate it every 6 months
Under the government regs, the scheme must be open to all staff?
It is, but they only have so many schemes open there, for whatever reason, so people have to submit an application. It's meant to be fair but it's not.
Have to say, ours works really well. Basically tell the accountant what you want and he gives you the dough 🙂 It's almost too easy, VERY tempted to get a third bike on the scheme.
Emailed some documents for you Psychle, just a basic spreadsheet and the agreement letter from our scheme. If anyone else wants them, mail in profile...