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How often can you buy a bike?
There is an option of paying it off in a year. Would you then be able to buy another?
I'm self employed but hoping my brother could buy me something and I'd give him the cash.
However I wouldn't want to stop him buying a bike if he wanted one in the near future.
If you are self employed you can buy your own bike. Just set the scheme up.
Mr potato I'm not on PAYE, is there another way of doing it?
You can buy one every year if you wish.
If your brother changed jobs midway through the year of paying then things could get complicated - just one obvious reason amongst many not to do this.
Cyclescheme.co.uk is one every twelve months.
Sounds promising.
Bike would be £2k . So would there be relief on £1k or all of it?
We are signed up to a scheme for staff to get up to 40% off a bike to be used for work and leisure. Vouchers up to the value of £1,000 are available for use at any partner cycle shop when purchasing your choice of bike and safety equipment.
Bike would be £2k . So would there be relief on £1k or all of it?
If they are still using the old £1K limit (it was removed a few years ago - some companies allow unlimited values to be bought, others have a limit - mine is £2.5K) you are in murky waters. Some retailers allow top up but I think that is slightly dodge. Regardless, the employer owns the bike to start with even if you chipped in half the money as a top up.
Our scheme has the same smallprint about being up to £1,000 value. But that's what it's capped at in total, we're unable to buy a £2k bike on it - something to do with the company owning it and leasing it to us, if they only own a proportion of it (if you get something for more than a grand) then it doesn't work. So even if the bike I wanted was £1,050 I couldn't put £50 to the voucher.
Also, technically your brother would be selling something he didn’t own, which if busted, might be problematic.
If you can only get a £1000 voucher, topping up isn’t allowed (though some shops are ‘flexible’) as both the company and the employee would own the bike. You’d only get relief on the voucher value.
Mr potato I’m not on PAYE, is there another way of doing it?
Ltd co, sole trader, or umbrella?
If it's a limited co then IIRC you just do it as normal, set yourself up with a scheme provider if you want (green commute initiative IIRC offer a much higher price limit) or DIY it. The only caveat is that your earnings cant go below the national minimum wage. So if you're paying yourself via dividends then you'd have to do the maths to see if it's worthwhile paying yourself the higher wage vs just buying the bike yourself post-tax.
Sole trader I think there's a method, but not sure. Basically you'd just buy it as a company asset and then ride it to/from work. Sounds potentially messy though trying to convince HMRC if it's blatantly a toy.
Umbrella, no idea if any umbrella schemes offer it. I doubt they do as it'd leave them with the liability and having to claw it back from you unless you were continuously employed by them.
Company buys bike, becomes pool bike. No scheme required. B2W exists to tweak PAYE, there is no need in this case.