Campaign for tax rebate on cycle commuting

itboffin

After three years of almost continuous cycle commuting I've almost completely given up using the car during the week, racking up a handy annual mileage, dropping a fair few pounds along the way. Financially speaking i've saved a small fortune especially after we got rid of the second car but there are additional costs, for example the bike, clothing and accessories then there's the on going maintenance costs, all peanuts by comparison of motoring.

Getting to the point, currently you can claim 20p per mile for every mile you cycle for work purposes either via your employer or from the tax man.

More and more companies are offering cycle to work schemes allowing employees to purchase virtually tax free bikes & apparel.

It's now becoming pretty normal for companies to include secure cycle parking, showers etc.

So clearly companies are beginning to understand the benefits in productivity from employees that cycle to work, many cycling organisations and cyclist alike want to improve facilities and therefore safety for cyclist at the same time encouraging more cyclists and thus beginning the cycle of improvement.

Anyway this made me wonder, what would it take to get more people out of their cars and on the roads cycle commuting?

So I thought why not offer tax relief on cycle commuting, surely that would encourage more people to cycle to work which would force improvements in cycle lanes and road quality, which in itself would encourage more people on their bikes, generally the populations health would benefit which should save the money spent on tax rebates in health care costs.

My question to you all, is am I barking or does this campaign proposal have legs? (wheels)

always_tyred

I voted no, but not because you don't have a point.

The question is, what do you get a rebate for? Is once a week in the summer enough to get a rebate? Or is not cycling this week in 50mph gusty rain enough to invalidate the rebate?

What about driving part way and cycling from a park and ride? How far do you have to cycle to qualify?

Who arranges for and submits the tax returns? How is it possible for the tax man to verify if you actually DID cycle to work?

More practicable would be removing VAT from cycle gear, or offering a rebate on cycle purchases, or making cycling provisions at workplaces compulsory if requested/required (for example, if ANY parking spaces are provided, cyclists wishing secure parking and other facilities should have them as of right, or alternatively requiring that companies above a certain size to make such provisions).

Anyway, you could use the extra sleep.

deptfordmarmoset

Off the top of my head, mileage-related VED would benefit not just cyclists but also those who walk or use public transport. That might have a wider appeal.

itboffin

It could work the very same way as business miles in the car, when you do the miles you submit a claim to work or on your tax return, this would only be open for cycle miles because of the health benefits so if you part drive / cycle which i'm doing at the moment you claim for the pedal powered miles.

Sure it's open to abuse but then so is the current business mileage scheme.

BTW this is just an idea i'm not getting on a soap box or anything

Aidy

deptfordmarmoset wrote:

Off the top of my head, mileage-related VED would benefit not just cyclists but also those who walk or use public transport. That might have a wider appeal.

If only we had some sort of tax for people who did more vehicular miles, and some useful way of measuring and applying it.

We could also reduce this for people who drove more efficient cars, and who drove in a more efficient manner.

itboffin

Now don't burn me but we shouldn't punish people for using their cars, we should encourage people to consider when to use the car.

Just how many journeys everyday could be done on foot or by bicycle. As a cycling motorist I never rage or preach about the pros or cons of either forms of transport but I did point out to my brother in law who's just moved back to London how much quicker it would be to cycle from his flat into the city and at work we had one of the guys come over from SA asking how best to get from Battersea to Kings Cross, mmm perhaps I have been preaching, oh well.

If only someone had told me, I spent 35 years in London all sans bike

Aidy

Also (I said this in the Stats thread), I'm not really convinced there's a tax break.
Particularly not one you can apply for from the tax man...

Is it not an allowance for cycling miles?

In that, if you drive, you can be paid up to 40p/mile by your employer in respect of the fuel you use and upkeep and maintenance of your car. If you drive for work and you aren't compensated for it, I don't think you can reclaim this as a tax break from the tax man - although you could employers to pay you effectively a lower amount respective of your mileage allowance and then your mileage (so that that portion is income tax free)...

Bah, this is hard to explain with words.

Say you're paid £1000/month. And income tax is 30%.
Say you drive 500 miles in that month, and your employer doesn't pay you mileage for that.

You'd normally get £700/month net.
If you asked to be paid £800 + £200 for mileage (500*40p), then you'd end up with £760 (£560+£200). So you're better off. I don't think you can apply for this to be the case with the tax man, you have to get your employer to sort this with payroll.
It's like expenses.

Really most employers will pay you mileage on top of your salary, so £700+£200.

Same for cycling really, except it's a 20p/mile mileage allowance. I'm really not seeing where a tax break would come in. You can be paid extra for it, you can't get tax back for it.

deptfordmarmoset

Aidy wrote:

deptfordmarmoset wrote:

Off the top of my head, mileage-related VED would benefit not just cyclists but also those who walk or use public transport. That might have a wider appeal.

If only we had some sort of tax for people who did more vehicular miles, and some useful way of measuring and applying it.

We could also reduce this for people who drove more efficient cars, and who drove in a more efficient manner.

I'll take this as a pretty elliptical reference to fuel duty Sure, that's already in operation but there's a limit - a political limit - to how much tax you can add to the price of fuel. But when you reduce your mileage below a certain point, the cost of fuel becomes negligible compared to insurance, maintenance and VED. Tax relief or lower insurance/VED would continue to act as an incentive towards lower vehicle use.

Aidy

deptfordmarmoset wrote:

I'll take this as a pretty elliptical reference to fuel duty

redvee

Would this cover the innertubes you go through?

always_tyred

redvee wrote:

Would this cover the innertubes you go through?

A soap allowance would also help.

solsurf

Sorry I just don't think its a flyer. Maybe what they could do is tax breaks for companies with facilities that enable cycling and tax car parking spaces.

Where I work we have showers, great covered cycle storage and about 30% cycle to work. Could be that its an environmental organisation oh and the Chief exec is well into his cycling.

redvee

Some companies give cycling employees a cycling allowance but they are few and far between. I got a mileage allowance from the Dole Office when I was on an ET course. Got money for the train plus the miles from the station to the location of the course or the whole distance if I rode.

snailracer

IMO the benefit of a tax rebate (apart from the purely financial) is that cycling would then be promoted as something that is of benefit to society and to be encouraged, rather than just a cheapskates' method of "road tax"/fuel duty avoidance

I'm sure the Govt could come up with a workable scheme it they put their mind to it (Cylescheme, carbon credits, etc.) - a bureacracy that can justify VAT could justify anything.

MonkeyMonster

I want to vote for both having got out of mine far too early this morning...

tailwindhome

Always Tyred wrote:

More practicable would be removing VAT from cycle gear, or offering a rebate on cycle purchases

+1

Certainly a reduced rate.

Wallace1492

Surely the C2W scheme is the tax rebate on cycle commuting? If this was extended to any cycle related purchase up to £1000 a year that would help. I dont want a bike for 2010, so have not joined my companies scheme, but if I could have had £1000 credit for wiggle say, and been able to get that tax free, then I would no doubt have spent it.

spen666

Tax rebate here just means paying more tax elsewhere

snailracer

spen666 wrote:

Tax rebate here just means paying more tax elsewhere

Well if someone else pays it, that would still benefit us, as cyclists.

roger_merriman

I don't think it's a flyer really, nice idea though.

Clever Pun

itboffin wrote:

Getting to the point, currently you can claim 20p per mile for every mile you cycle for work purposes either via your employer or from the tax man.

woah woah... what?

will3

I think we should get free VED on our cars if we cycle to work and leave them on the drive.
After all, we're always being told that we "don't pay road tax" so why not?

biondino

Clever Pun wrote:

itboffin wrote:

Getting to the point, currently you can claim 20p per mile for every mile you cycle for work purposes either via your employer or from the tax man.

woah woah... what?

As in when you are at work, if you have to cycle somewhere to do your work, you can claim up to 20p a mile. You can't claim it for commuting.

I assume it also doesn't apply to people whose job IS riding a bike. Otherwise Chris Hoy would be LOADED.

biondino

Wallace1492 wrote:

Surely the C2W scheme is the tax rebate on cycle commuting? If this was extended to any cycle related purchase up to £1000 a year that would help. I dont want a bike for 2010, so have not joined my companies scheme, but if I could have had £1000 credit for wiggle say, and been able to get that tax free, then I would no doubt have spent it.

I agree with Wallace (again - this is getting weird). It's not universal, and it may not even be very efficient, but it provides for up to £500 relief over the life of a bicycle. If you're not buying a bicycle, then you're not spending money, so you're not losing out.

I quite like the thought of no/lower VAT on cycling essentials, rather than anything to do with cycling. Your £200 Assos tights should be taxed to the hilt (a la income tax - you can clearly afford to pay more ), but locks, lights, mudguards, helmets*, racks, panniers etc should benefit.

Wallace1492

biondino wrote:

Wallace1492 wrote:

Surely the C2W scheme is the tax rebate on cycle commuting? If this was extended to any cycle related purchase up to £1000 a year that would help. I dont want a bike for 2010, so have not joined my companies scheme, but if I could have had £1000 credit for wiggle say, and been able to get that tax free, then I would no doubt have spent it.

I agree with Wallace (again - this is getting weird).

Hey!! I am a very agreeable person!! Fairly intelligent, open minded, happy to buy a round, nice to taxi drivers, wave to old ladies on way home from work. Just your usual Glaswegian really.

jedster

I think the key point to understand is that

TAXES ARE GOING UP!!!

have you seen the budget deficit?

Given that the chances of the Government being sympathetic to new ideas to reduce the tax take is, well, non-existant.

biondino

Wallace1492 wrote:

Hey!! I am a very agreeable person!! Fairly intelligent, open minded, happy to buy a round, nice to taxi drivers, wave to old ladies on way home from work. Just your usual Glaswegian really.

So you can read the label of a Buckfast bottle, will shag the fat barmaid for a free pint*, say "sorry pal" when you've vomited in the back of a cab, and mug pensioners for beer money? Yup, sounds about right**


* any resemblance to il principe, living or dead, is purely coincidental

** this is all said entirely in jest, in case it needs to be said - indeed some of my best friends are Glaswegian

Wallace1492

biondino wrote:

Wallace1492 wrote:

Hey!! I am a very agreeable person!! Fairly intelligent, open minded, happy to buy a round, nice to taxi drivers, wave to old ladies on way home from work. Just your usual Glaswegian really.

So you can read the label of a Buckfast bottle, will shag the fat barmaid for a free pint*, say "sorry pal" when you've vomited in the back of a cab, and mug pensioners for beer money? Yup, sounds about right**


* any resemblance to il principe, living or dead, is purely coincidental

** this is all said entirely in jest, in case it needs to be said - indeed some of my best friends are Glaswegian

That's nearly me!!

Only tried Buckie once, it a bit too strong for me. Never mind the free pint.... :shock: , usually get the cab door open first, I have my own beer money - pensioners need all the liquid they can get.