Cycle to Work - Fraud?

samhedges

I was just talking to my dad's friend about cycling when he told me about how he got 40% off his latest roadie. I'm going to be buying my own bike soon and without reading much into it I'd just like to ask a few questions.

Firstly, being only 16 and not in full time employment, I was just wondering if they offered it for part time work, ie. voluntary and gardening?

Otherwise, would it be bad if I was to get a parent to sign up for it and get them to buy it for me?

TheEnglishman

The only problem is the (new) tax implications - if you're buying a bike >£500 you only get it tax free after 6 years. The taxman's got a website covering all eventualities.

Wacky Racer

Cycle to work is a salary sacrifice scheme, therefore any sacrifice cannot make your salary less than minimum wage. I am confident, although not certain, that you must be over 18 to join the scheme, but there are a number of schemes, so different rules may apply.

As for the ethics, I think you already know the answer. The scheme is designed to encourage employees to get fit by cycling to work. It is unlawful to use the scheme outside of the rules which are made clear in the contract.

Monty Dog

The scheme is run by an employer for employees, you are unlikely to be eligible. If either of your parents employers were to run the scheme they could buy a bike - few employers rigidly enforce the rules, its just seen as a perk. My employer pays for my car, but it doesn't stop them offering me a bike.

mattv

The c2w scheme avoids income tax and national insurance payments on a bike for that employee to cycle to work. HT must be that persons bike rather than a partner or child. For the credit, you must be 18.

samhedges

Oh well, thanks guys. Looks like I'll have to pay RRP

TheEnglishman

mattv wrote:

The c2w scheme avoids income tax and national insurance payments on a bike for that employee to cycle to work. HT must be that persons bike rather than a partner or child. For the credit, you must be 18.

Only if you still have the bike and are still employed by the same company after up to 6 years. It's not as simple as just getting up to 40 odd percent off the price of a new bike.

ianshotton

I know people who have bought bikes for their kids so long as they are adult sized bikes so I don't think there will be a problem.
Also you don't need to keep it for 6 years necessarily. My company scheme results in a near 40% discount after just one year. - check the specifics of your dad's scheme.