- Cycle to work scheme – when/how do I own the bike?
You have a loan agreement with your company, you pay off said loan before tax – hence getting a tax-free bike. Lovely.
You then pay back *an amount* after the agreed loan period (1 or 3 years usually), which is something like 10% of the market value of the bike at the end of the load period.
Once you’ve paid that, you own the bike 🙂 Yipee!
Simple.Posted 4 years agoriddochSubscriber
To avoid the tax liability some schemes retain ownership till the value of the bike had decreased to zero as far as HRMC is concerned. Something like 3 or 4 years.Posted 4 years ago
After 1 year HRMC view the bike as still being worth something like 25% of its value. If that is transferred to you are liable to pay whatever your rate of tax is on that value.DibbsMember
Cyclescheme guidance here:- http://www.cyclescheme.co.uk/employers/employer-updates/hmrc-updatePosted 4 years ago
Our company does a 3 year scheme, mine finished last year and I paid tax on 12% of £1000.
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