Cycle Scheme over £1000 - advice please

antlaff

Hi

Our company manages its own scheme and has a Consumer Credit license so I can buy over the £1000 but can I

1.claim VAT over the full amount say bike is £3000 therefore £600?
2.will my salary sacrifice be on the first £1000 less tax or over the full balance?

i have searched the threads but its hard to find advice over £1000 purchases

Butterd2

My purchase was >£1000 but I could only get a £1k voucher and had to pay the rest upfront. You will not get any benefit from the spend >£1k which seems rather unfair to me as I really need a new Ti commuter for the spring.

benpinnick

If your company has a CCL then you can go as high as you like. The 1000 limit is only based on the blanket CCL the OFT has issued for non registered companies. Yes you can get the VAT back, and yes the sacrifice will apply across the whole amount. You will need to do it independently through your company though, not the schemes I believe. The forms are readily available online for your HR people to download. Its really very simple.

benpinnick

Butterd2 wrote:

My purchase was >£1000 but I could only get a £1k voucher and had to pay the rest upfront. You will not get any benefit from the spend >£1k which seems rather unfair to me as I really need a new Ti commuter for the spring.

Doing it this way is not actually allowed, but hey ho.

antlaff

benpinnick wrote:

If your company has a CCL then you can go as high as you like. The 1000 limit is only based on the blanket CCL the OFT has issued for non registered companies. Yes you can get the VAT back, and yes the sacrifice will apply across the whole amount. You will need to do it independently through your company though, not the schemes I believe. The forms are readily available online for your HR people to download. Its really very simple.

Thanks for the advice - just need to get in before they change anything on the 23rd March !!

Butterd2

benpinnick wrote:

Butterd2 wrote:

My purchase was >£1000 but I could only get a £1k voucher and had to pay the rest upfront. You will not get any benefit from the spend >£1k which seems rather unfair to me as I really need a new Ti commuter for the spring.

Doing it this way is not actually allowed, but hey ho.

Guess no one told Evans that then.

benpinnick

Butterd2 wrote:

benpinnick wrote:

Butterd2 wrote:

My purchase was >£1000 but I could only get a £1k voucher and had to pay the rest upfront. You will not get any benefit from the spend >£1k which seems rather unfair to me as I really need a new Ti commuter for the spring.

Doing it this way is not actually allowed, but hey ho.

Guess no one told Evans that then.

I think that Evans will be clamping down on this fairly soon. Its technically not Evan's issue if it does happen, so they can't be held responsible,and do allow topping up. But the issue relates to the fact that the OFT's blanket CCL covers the loan of bikes and accesories up to the value of £1000. Just because the voucher is only for a £1000 doesn't mean the loaned goods aren't over that value. Its a bit of a grey area, but as the scheme is always teetering on the edge of getting cancelled, I think that groups like Evans will start to make sure they follow the rules to the letter and stand on the side of caution in future to protect them from being accused of blowing up the scheme.