cycle to work scheme

coolboarder

Theres a few of us at my work wanting to take part in the cycle to work scheme but have been stopped right in our tracks because our employer doesnt want the initial outlay to fund the new bikes. Quite understandably cash flow is a problem this day and age for many so this expense is some what off putting. It seems strange to me that so much is put onto the employer to fund a government backed scheme.

Anyway, is there another way round this? Theres probably 10 of wanting to join the scheme but with a potential 10 grand to fork out, our employer is steering well clear!

pete54

There is no way around it using the government scheme. You might want to explain to them that they get a tax break as well as the employees.

Headhuunter

To be more specific, your employer saves the employer NI contributions s/he would have had to make on the portion of your salary you "sacrifice" so ultimately saves money. However the initial outlay is unavoidable....

The Rookie

He won't be forking £10K, it will be just over £8K for starters (VAT reclaim).....then as has been said you point out that he'll be avoing the 12% (? unless its changed) employers NI on the salary sacrifice.

Simon