Cycle to Work q

Iwingstein

Peeps,

I'm confused as to why anyone needs to use an outfit like "cyclescheme.co.uk" to get a voucher to pay for a bike, when I can take a company cheque/credit card to lbs to pay for bike, then get our accountant to do the dirty work - ie sort the vat reclamation (which he does anyway), sort the PAYE (which he does anyway), sort our income tax collections (which he does anyway), and do the salary sacrifice.

Help please, as I'm quite keen to do this, but don't see the point in involving unnecessary third parties.

Thanks

Simon

stumpyjon

We've been looking at this recently to and I've come to pretty much the same conclusion. All that cyclescheme seem to do is provide a framework and administer the payments to the bike shops. Our lot are looking at going with another scheme that doesn't even do that. I'm really not sure what they do for their money TBH. Your firm will still have to sort the salary sacrifice, fork out the cahs and pay an invoice to someone, claim the VAT back, setup the asset on your asset register to benefit form that side of it. If you have a good local shop then you should be able to set something up direct with them You will probably get the bikes cheaper to. Cyclescheme charge the retailer 10% commission which is why they often won't discount the bikes.

Iwingstein

stumpyjon,

Thanks for reply - this has really started irritating me! For what it's worth, I found this on Halfords C2W info pages:

"The employer can administer the scheme, or Halfords can introduce
an administration service."

From Wiggle:

"Do we need to advise any Government authority, including the Inland Revenue?
There in no requirement to notify any authority and prior approval is not required. However once the Cycle to Work scheme has been established an employer may wish to check with their tax office that PAYE and NIC does not need to be accounted for any salary sacrificed.

also

What forms do I need?
You must download and print out the following PDF which contains the following forms:
Introductory letter
Order form including financial info
Pre Contract Information
Hire agreement"

These are simple agreements between the parties and could be rewritten by any outfit who sees fit to (and is capable of) managing their own schemes.

And this may be most helpful:

http://www.dft.gov.uk/pgr/sustainable/c ... df/518054/

I'm gonna look for a new bike:D

ATB

Simon

huskyboy64

I don't care how my employer did it, as i got my 2009 Spicy 916 frame for £0.00 now and £50.00 a month for 12 months. Work it out....this was a severely discounted frame and it's cost me bugger all.

owenlars

Yup we have our own scheme which we adminsiter. I take a company cheque for up to £1000 to any bike shop to buy any bike topped up by any amount I wish. It is all agreed with HMRC and they have recently reinspected and re-confirmed approval.

ExeterSimon

I don't care how, who, when, where or why this scheme works. It's given me two bikes heavily discounted and when mine and the wife's current contracts run out it's Whyte E120 here I come.

I just hope the Tories don't scrap it if they get in.