[url= http://www.bikebiz.com/news/read/bike-to-work-is-now-subject-to-vat/011601 ]From BikeBiz[/url]
I never got the maths on tis anyway, it being salary sacrifice and all.
What you save you loose on your pension contributions and bonus payments (if you're luck enough to get these)
So now even less favourable 🙂
http://www.singletrackworld.com/forum/topic/cycle-to-work-scheme-help-and-options-needed
And your analysis depends on whether your pension and benefits are based on your notional salary or "cash" salary.
Just make sure your bonus / pension etc is based on you salary before you sacrifice it for things like this.
Standard and normal for HR / Payroll, if not tell them to get with it.
Still if they drop the 20% saving on the VAT that just leaves you with the PAYE / NI saving and the fact you spread the cost over say a year.
Slowly drip by drip the benefits get taken away by the tax man.
ainsley, this is down to the european court calling foul on Astra Zeneca giving high street shop vouchers as a pre-tax salary sacrifice for at least the last 10 years, and the C2W scheme getting caught by the same ruling.
I have just asked for a C2W voucher to get (swallows pride) a road bike to try get back into riding/fitness so I am interested to see if a voucher obtained in 2011 will incur VAT on 2012 payments, or whether it will be deemed an existing contract. As a pov lower rate tax payer it will get to the point where I can get a better deal on an end-of-season sale bike than thru the scheme, especially as shops only tend to offer full RRP bikes on the scheme to offset the fee they pay the managing company.