Cycle to Work final valuation
Comments
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Looks like I've fallen victim to this change! Although as I work it out there is still a saving on the bike of around £200.
Grr - got my bike back in April/May, but due to an oversight in finance they didn't start the salary sacrifice until August - I would have finished paying it off before the change came in!
What annoys me is that because of this change during my agreement, my company will have made a profit of £231 and more from other people n the scheme. I am going to suggest they donate this to charity.0 -
PinkPedal wrote:Looks like I've fallen victim to this change! Although as I work it out there is still a saving on the bike of around £200.
Grr - got my bike back in April/May, but due to an oversight in finance they didn't start the salary sacrifice until August - I would have finished paying it off before the change came in!
What annoys me is that because of this change during my agreement, my company will have made a profit of £231 and more from other people n the scheme. I am going to suggest they donate this to charity.
You need to go an negoiate with your employer.
Again from here http://www.evanscycles.com/uploads/File ... mo=Content
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For existing participants1:
Existing participants have expressed concerns regarding the new guidance. In particular, these concerns
relate to the effect of what is, in many cases, a substantial increase in the anticipated Fair Market Value
(FMV); based upon marketplace observation.
It is our understanding that the revised HMRC guidance applies to all existing schemes and not just
those entered into after the date of the announcement.
There are two ways in which the effects of a higher FMV can be offset. These may be applied
individually or in tandem.
Extending the Hire Period:
Provided that an employee is still within the term of their hire agreement it is possible to extend this by
way of an addendum to their original contract. We have developed an addendum to our original hire
contract which you may use for this purpose.
By extending a hire contact to a 36 month term, as opposed to say 12 months, employees will save
considerably on the FMV, should the goods be offered for sale.
Amending the salary sacrifice:
Similarly, the terms of a contract governing an employee’s salary sacrifice may be altered by way of a
mutually agreed addendum. In this case, and provided that this only applies to uncollected deductions,
an employer can choose to not collect, in part or in whole, any remaining amounts.--
Chris
Genesis Equilibrium - FCN 3/4/50 -
Thanks for this info - I will send the info off to hr/finance tomorrow and see what they say!0
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Sketchley wrote:PinkPedal wrote:Looks like I've fallen victim to this change! Although as I work it out there is still a saving on the bike of around £200.
Grr - got my bike back in April/May, but due to an oversight in finance they didn't start the salary sacrifice until August - I would have finished paying it off before the change came in!
What annoys me is that because of this change during my agreement, my company will have made a profit of £231 and more from other people n the scheme. I am going to suggest they donate this to charity.
You need to go an negoiate with your employer.
Again from here http://www.evanscycles.com/uploads/File ... mo=Content
So the employer could simply give you the bike. Is this right?
--
For existing participants1:
Existing participants have expressed concerns regarding the new guidance. In particular, these concerns
relate to the effect of what is, in many cases, a substantial increase in the anticipated Fair Market Value
(FMV); based upon marketplace observation.
It is our understanding that the revised HMRC guidance applies to all existing schemes and not just
those entered into after the date of the announcement.
There are two ways in which the effects of a higher FMV can be offset. These may be applied
individually or in tandem.
Extending the Hire Period:
Provided that an employee is still within the term of their hire agreement it is possible to extend this by
way of an addendum to their original contract. We have developed an addendum to our original hire
contract which you may use for this purpose.
By extending a hire contact to a 36 month term, as opposed to say 12 months, employees will save
considerably on the FMV, should the goods be offered for sale.
Amending the salary sacrifice:
Similarly, the terms of a contract governing an employee’s salary sacrifice may be altered by way of a
mutually agreed addendum. In this case, and provided that this only applies to uncollected deductions,
an employer can choose to not collect, in part or in whole, any remaining amounts.0
