Interesting C2W decision with my Employers!
chunkytfg
Posts: 358
Just thought I'd post this as I received a letter from my employer today telling me of the FMV changes to the C2W scheme.
Basically as you all know the 3% thing at the end of the term was scrapped in favour of an 18/25% value depending on the price of the bike. My employer has decided to basically give me the bike at the end of the 12 month term meaning I am liable for a 'benefit in kind' tax of the FMV. This value will be calculated and then my tax code will be adjusted next year to recover the tax owed.
This may seem like a 'look at me arnt I lucky' type thread but I havent seen this method mentioned anywhere before so thought I would post it as a possible alternative to suggest to your employers as a way of dealing with the increased FMV
Basically as you all know the 3% thing at the end of the term was scrapped in favour of an 18/25% value depending on the price of the bike. My employer has decided to basically give me the bike at the end of the 12 month term meaning I am liable for a 'benefit in kind' tax of the FMV. This value will be calculated and then my tax code will be adjusted next year to recover the tax owed.
This may seem like a 'look at me arnt I lucky' type thread but I havent seen this method mentioned anywhere before so thought I would post it as a possible alternative to suggest to your employers as a way of dealing with the increased FMV
FCN 7
FCN 4
if you use irrational measures to measure me, expect me to behave irrationally to measure up
FCN 4
if you use irrational measures to measure me, expect me to behave irrationally to measure up
0
Comments
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Has been suggest before. :0)
All you are liable for is the tax on the difference between the FMV of the bike less any thing you pay for it. So in most cases 40% of 18% of the original price. What's more simply declare it on your tax form and it will get put in tax code and claimed back iva PAYE, so you only pay monthly. You won't even notice it as you'll no longer be paying the rental.
However you should ask your employer to continue renting the bike to you indefinatley (you will need a contract amendment) for £0 per month. That way you pay nothing else.--
Chris
Genesis Equilibrium - FCN 3/4/50 -
My work place has extened the 'loan' period to 5.5 years so the residual value is zero. Yay!'11 Cannondale Synapse 105CD - FCN 4
'11 Schwinn Corvette - FCN 15?
'09 Pitch Comp - FCN (why bother?) 11
'07 DewDeluxe (Bent up after being run over) - FCN 80 -
Sketchley if i'm honest I havent read all the stuff talked about on here so did know that.
As for my employer extending the loan period? No chance! They are way to big a company to start that hassle I so i'm just glad they have done it this way and not just billed me for 25% :shock:FCN 7
FCN 4
if you use irrational measures to measure me, expect me to behave irrationally to measure up0
