But if you are on minimum wage you can’t access it at all.
Minimum wage earners (full time) are on 17k, so still able to save ~30% tax+national insurance.
what about f you are in the 'gig' economy or self-employed?
My partner works in care. Many of the staff are 'agency' and some also do not drive and take taxis a lot, either from home or from the local train station.
Something like the brompton ebike would be perfect for them but I don't think they can access it as they are self-employed ?
hat about f you are in the ‘gig’ economy or self-employed?
most of the people i know who are self employed are already fleecing the tax system, so missing out on a few pounds won't worry them.
Is it possible to buy just a frame on C2W?
Legally? god knows. I've done it twice though through my lbs.
No doubt there will be a 'cyclist' along in a minute to say no, it's immoral and illegal and you deserve to die, what if it was a childs face, a baby robin blah blah blah....
Something like the brompton ebike would be perfect for them but I don’t think they can access it as they are self-employed ?
As a money grabbing ltd co wielding IT contractor I just buy the bike through the company and use it for attending meetings/visiting client sites etc, then write it off after an appropriate amount of time. Not sure if sole traders could do it though.
This isn't going to decrease the price of bikes, is it?
Still could take a while for it to filter through: a previous employer of mine had their own cap of £500 until 2 years ago. The HR Director was one of those Audi owners with a "you could buy a car for that" attitude!
so the tax saving will still be tax rate x £1,000 it just means if i want to buy a £1,200 bike
the stupid rules about £1,000 max spend doesnt matter..
which as a friend once told me most local bike shops got around anyway by issuing a receipt for £1,000 and taking the cash/ payment difference seperately..
most of the people i know who are self employed are already fleecing the tax system, so missing out on a few pounds won’t worry them.
Self-employed also includes contractors, right? Contractors can not only get the benefit of the higher tax rate savings, but did you know they can also claim BIKE MILEAGE! just for using the bike to get to work...
The C2W scheme is no more biased to those on a higher tax rate than any other salary sacrifice schemes.
I've seen these to include: Additional Pension Contributions, Childcare, Home Computers and buying or leasing Cars.
Whilst it is true that those who earn more can make more bang for their buck, the moral issue is surely more around supporting a political party with a tax scheme you approve of?
You could spend over £1000 anyway if you used Green Commute Initiative.
You could spend over £1000 anyway if you used Green Commute Initiative.
As far as I can tell the "change" is just the guidance clarifying its legal to use them or other FCA approved 3rd parties.
The £1000 limit was because your company would need to be FCA authorised to offer more, green commute initiative are able to run it on the behalf of other companies, they own the bike rather than your company.
Free bike vouchers for the workers, down with the rich who benefit most from C2W schemes! Maybe when Komrade Korbynistyn sizes power he'll nationalise the bike industry, Grifters and Choppers all round, priceless
So sorry if I'm being hard of thinking but does this mean that the amount above £1000 is part of the salary sacrifice loan (so realising a bigger tax benefit) or just that the top-up ability which some shops allowed you to do is now ok? It's not clear form the article or when it comes into force.
Nothing is coming in to force, it's guidance for companies using cycle to work schemes.
Your company buys the bike and hires it back to you using salary sacrifice. This has a £1000 limit unless the company has been authorised by the FCA.
Alternatively a 3rd party purchases the bike, in which case it can be over £1000 if they are FCA authorised. Green Commute Initiative are already doing this, others may follow now the government has clarified the legality.
How much Tax and NI (and employer NI contributions) is not paid through all the bike to work salary sacrifices? I'd be keen to see that money used to remove VAT from bike purchases instead. Probably wouldn't stretch as far as all bike sold but you could catagorise bikes as 'commuter friendly' and they get the exemption. So no more weekend gnar sleds for BMW driving high rate tax payers that never go anywhere near a place of work. Surely more fair than the current situation.
Is there any hint as to when this will come into force? The goverment's own press release doesn't say so, but if it's come into force immediately then they haven't updated the guidance on their website.
And am I correct in understanding that if my employer were to do this directly (they buy the bike, not through a third party like Cyclescheme) they are still bound by the FCA regulations so the limit in that situation would still be £1000?
Out of interest, if my employer are buying the bike, is there anything to stop us buying a bike from Germany? There's nothing in the guidance to suggest that, and my understanding from the guidance document is that it doesn't matter where it came from, it's just salary sacrifice for a bike.
