Cycle to work scheme - changing jobs?

razkaz

Hi all,

Looking to purchase a bike for winter commutes and given that my work has opened the entries for the Cycle to work scheme again, I'm contemplating about whether to go for it.

The complication is that I'm looking to change job soon - do you know what will happen if I was to move? Would I have to proceed to paying the full price of the bike once I move? (please note, nothing is concrete at the moment - otherwise I prob would have joined in the next workplace :oops: )

Additionally, with the changes introduced by the HMRC, is it worthwhile going for the cycle to work scheme anymore?

Still balancing it all out - but tbh, there are some good deals about especially as stores are trying to get rid of 2010 stock :shock:

Thanks

sc999cs

Our company deducts the amount owed from your final salary payment, so for instance if you've borrowed £1000 and paid 6 months, £500 will be deducted from your final salary. Not sure how they deal with FMV though.

richred_uk

Under the HMRC rules, any outstanding rental payments should be deducted from your final paycheque, but WITHOUT the tax advantage - that it deducted from your net pay, not gross pay. So if you were paying £70 a month and only noticing £50 a month short in your pay because of the tax, you'd miss x months * £70 rather than x months * £50. I think you still get the VAT saving, and I don't know how the Fair Market Value works under the new scheme if you leave early.

ex-pat scot

You can get a fair number of 2010 bikes at 20% discount at the moment. Worth investigating as an alternative to the C2W scheme I guess

You lose the tax benefit of the remaining monthly payments if you leave employment. You'd also have the additional discomfort of the final FMV payment.

The Rookie

razkaz wrote:

Additionally, with the changes introduced by the HMRC, is it worthwhile going for the cycle to work scheme anymore?

No 'changes' have been made at all, HMRC have moved to tighten up on the flagrant tax evasion through companies selling bikes, after the agreement ends, at well below FMV, the rules remain exactly as before.

Simon

Headhuunter

The Beginner wrote:

razkaz wrote:

Additionally, with the changes introduced by the HMRC, is it worthwhile going for the cycle to work scheme anymore?

No 'changes' have been made at all, HMRC have moved to tighten up on the flagrant tax evasion through companies selling bikes, after the agreement ends, at well below FMV, the rules remain exactly as before.

Simon

It was hardly "flagrant tax evasion". Final payment was not based on market value but based on the employee having already paid a chunk of cash for the bike but not full price, therefore encouraging more cycling. HMRC's "tightening up" has ruined the scheme which encouraged people out of their cars...

shouldbeinbed

Headhuunter wrote:

The Beginner wrote:

razkaz wrote:

Additionally, with the changes introduced by the HMRC, is it worthwhile going for the cycle to work scheme anymore?

No 'changes' have been made at all, HMRC have moved to tighten up on the flagrant tax evasion through companies selling bikes, after the agreement ends, at well below FMV, the rules remain exactly as before.

Simon

It was hardly "flagrant tax evasion". Final payment was not based on market value but based on the employee having already paid a chunk of cash for the bike but not full price, therefore encouraging more cycling. HMRC's "tightening up" has ruined the scheme which encouraged people out of their cars...

+1 I guess they could ask for the bike back, it is after all theirs until they offer and you opt to pay the FMVfigure.