Cycle to Work - Changes

floodthecities

Apologise if this is a repost...

It looks like the Cycle to Work Scheme, is to change - even for those part way through. The final payment will now be far more than the previous 5%

http://www.guardian.co.uk/lifeandstyle/ ... rgain-ends

alfablue

It doesn't mean the final payment has to be more, merely that hmrc will consider the difference between the final payment and a value of 25% for a year old bike will be a benefit liable to tax. In practice this means if you make a final payment of £50, you may be liable to pay tax on a presumed benefit of £200, therefore £40 for a basic rate tax payer.

See this for more numbers:

http://www.bikeradar.com/forum/viewtopi ... 4#16396704

paulbox

Another policy that will cost more to administer than it will recover... :roll:

MountainMonster

It's funny how mr. taxman always wants money from you any way possible. Hate HMRC.

kaytronika

See they've done this because they know I just decided I'm going to look at our cycle scheme next year.

Ours only runs once every 12 months.

All the people getting new bikes this year make me think about digging my bike out again.
I still ride mine, most of them have long since stopped.

Bizarre that a scheme designed to give people tax breaks for taking up cycling has caused someone who didn't even take advantage of it to take up cycling again.

RockingDad

Just typical, mine ends in september. Is there nothing in this country that the honest working guy and gal doesn't get screwed down for?

It will be interesting to see what my employer does as although it is supposed to be an employee benefit I can just see the bean counters working out all those 25% returns on all those bikes. I wonder how many people faced with paying out over £100 as a final payment just go "no problem, theres your bike back".

Personally I think it would be a more honest way of taxation if they made us all line up in the town square medieval style and two henchment shook you upside down until all your money fell out, at least you'd know from the offset what you'd be paying in tax.

With this being implemented and the multitude of strange tax things regarding pension tax fiddles that are suppose to benefit me that my employer pulls, i'm now going to end up paying MORE for the carrera than if I'd have just purchased it outright.. . . nice.

Rant over :x

RockingDad

fletch8928

I just took my form back saying I was going to buy the bike off the company for £5. Funny thing was that the letter also said that if i was returning the bike it would still cost me £5.
My voucher was for the full £1000 too

I still think that the companies will carry on charging the same final payment, but there could be random spot checks and valuations by The Taxman. Could catch people out with bikes that have been added too.

CanalRider

RockingDad wrote:

Just typical, mine ends in september. Is there nothing in this country that the honest working guy and gal doesn't get screwed down for?

RockingDad

Tell you what mate your ******* right, just read this : Police give bikes to ex-offenders

Bet they don't get it taxed as a benefit in kind.

I'm embarrassed to be even remotely associated with that lot.

My rant is just starting.

RockingDad

Holy S*** that is just about right nowadays. How about they give them to the victims of cycle crime instead of to the people who took part in it in the first place.

I can just see the grin on the face of the theving scumbag who will likely be given the bike he stole in the first place.

You couldn't make it up.

Perhaps thy should sell them the bike by deducting it from their first months wages (should they ever get a job) and then pay off the final ownership payments on our CTW schemes with the profit and some of us will likely have used the scheme to get a new bike to replace the one we had stolen in the first place!

Better go take another blood pressure tablet