Cycle to work probl...
 

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Cycle to work problems as a pensioner/zero hrs worker

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Im retired and receive my occupational pension. This is sufficient for me to pay income tax on.

I also work between 1 and 3 days per week at minimum wage in a couple of different businesses. Im zero hrs contract at both but always work at least a day, frequently 2 days and sometimes 3 days.

Im paying tax in 3 differwnt locations, so how can i get optimise this tax paying and get a cycle to work bike or frame? It seems im at a disadvantage by being part time and working for two different businesses.

Is there any way around this?

Thanks

Ian


 
Posted : 30/01/2023 6:49 pm
Posts: 20675
 

Have a contract to earn the amount you want to spend more than minimum wage, at the business that would provide you with the scheme.

Probably easier to get a 0% credit card & find somewhere doing a 20% off sale.


 
Posted : 30/01/2023 6:53 pm
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Its a strange scheme as it wont let you drop below minimum wage. Yet once you have earnt your money you are free to spend it on what you want....


 
Posted : 30/01/2023 6:56 pm
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Yes, you need to stay above minimum wage after the deductions. Except if you are a company director, in which case you can pay yourself whatever you like & minimum wage rules don't apply 🙂.


 
Posted : 30/01/2023 7:22 pm
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So if your on minimum wage and could do with some help you can't have it, but if your doing alright and don't 'need' financial assistance to buy a bike you can have it! This country is f@&#ed right up!


 
Posted : 30/01/2023 7:47 pm
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So if your on minimum wage and could do with some help you can’t have it, but if your doing alright and don’t ‘need’ financial assistance to buy a bike you can have it! This country is f@&#ed right up!

Oh, it's even better than that - If you are on minimum wage you don't get to access a discount and easy payment plan (on say a £500 bike you can't otherwise afford you really could do with to actually get to work); if you earn a bit more (say national average) you get to save 25% off the ticket price; but if you are on a wage high enough to be a high rate tax payer you get to knock 40% off. Add in the fact the system isn't policed and there is no longer a limit on how much it can be so that 40% bike can be a £12K toy for weekend 'shredding' and it's an awsums way to spend government funds.


 
Posted : 30/01/2023 8:02 pm
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Its a strange scheme as it wont let you drop below minimum wage. Yet once you have earnt your money you are free to spend it on what you want….

The same way that a company can't deduct anything for supplied uniforms etc.


 
Posted : 30/01/2023 8:05 pm
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To be honest, we bought one bike on C2W. Then worked out you can get better deals by shopping in sales or second hand.


 
Posted : 30/01/2023 8:24 pm
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Stupid scheme anyway. Want to encourage utility cycling? Remove VAT on bikes under £1500


 
Posted : 31/01/2023 8:31 am
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Want to encourage utility cycling? Remove VAT on bikes under £1500

You could replace it by charging VAT on flights....


 
Posted : 31/01/2023 8:36 am
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And tax jet fuel..


 
Posted : 31/01/2023 10:57 am
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Op - basically you cant do it. You are signing a contract to rent a bike, but unfortunately in your situation you dont have a guaranteed income to pay the rent.

Deductions can only be taken through one employer too  as the admin / tax side wouldnt been manageable across multiple organisations


 
Posted : 31/01/2023 11:08 am

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