Cycle to work schem...
 

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[Closed] Cycle to work scheme

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So i get that the cycle to work scheme offers you a relife on your tax's.

My employers are new to it though and there not really giving memuch information. i want to get a road bike to cycle my 16 mile commute getting to works not an issue but coming back is all up hill hence the road bike.

however what williactuly end up paying out of my own pocket, as i seeit the money that gets deducted from my tax isnt mine anyway as i never see it as i'm paye.


 
Posted : 23/11/2012 10:09 am
 DezB
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Do you know which scheme it is? There are a few.


 
Posted : 23/11/2012 10:19 am
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unforunatly not this is how little information we have been given. will try and find out though


 
Posted : 23/11/2012 10:20 am
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As an example, the C2W scheme my employer offers (assuming you pay tax at the 20% rate):

Cost of Bike: £500
Vouchers: £500

Gross mthly cost: £41.67
NET mthly cost: £28.33 (gross minus tax & NI)

Tax benefit (saving) over the year: £100.00
NI benefit (saving) over the year: £60.00

[b]Total Cost to you Over the Year: £340.00[/b]

Plus tax at your basic rate on Fair Market Value: [b]£18.00[/b]
(set by HMRC at 18% bike <£501, 25% bike >500)

[b]Cost to Own the Bike over 12 Months: £358.00[/b]

(Plus we get 15% of voucher amount as a 'bonus' for accessories if we buy through Halfords, so for £500 voucher this is another £75).


 
Posted : 23/11/2012 10:33 am
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An outrageous waste of taxpayers money!


 
Posted : 23/11/2012 10:35 am
 DezB
Posts: 54367
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There's a good guide to the various schemes (well links to em anyway) on the PlanetX site: http://www.planet-x-bikes.co.uk/cycle-scheme


 
Posted : 23/11/2012 10:43 am

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