Cycle to Work- rich people's tax perk?

father_jack

"If you are currently on National Minimum wage or are within you Probationary Period, you can still access a bike, but your options will be limited. Please call the cycle2work Contact Centre for details: 0345 504 6444"

:roll: So it works out better for rich people.

Nellyspania

If you're on 40% tax then it works out much better

Pufftmw

Nellyspania wrote:

If you're on 40% tax then it works out much better

Especially if your company forgets to take the payments from you...

pblakeney

On the other hand, they do pay more tax.
A person buying a Ferrari pays more thax than the person buying a Fiat. Fair? Of course.

bompington

So tax relief is only available to people who pay tax! Well I never!

Whether this is fair or not is up for discussion: at one end you impoverish the country by soaking the rich, at the other the poor get dumped in the bin.
But C2W presumably comes under the principal that you tax undesirable behaviour (booze, fags, gas-guzzlers) and reward desirable (cycling rather than commuting to work). As such it is not supposed to be redistributive.

spasypaddy

the reason it isnt available to those on minimum wage is the deductions would take you below the minimum wage for the month

father_jack

I do pay tax.
As expected it's rich mans perk.

dhope

Father Jack wrote:

I do pay tax.
As expected it's rich mans perk.

No, it's just not a minimum wage perk. As Spasy said, if it takes you below minimum wage then it's fairly understandable if it's not allowed.
Either that or I just found out I'm rich. Hoorah, tally ho etc. Where do I collect my Bentley?

father_jack

So it discrimates against those on NMW...

dhope

Father Jack wrote:

So it discrimates against those on NMW...

:roll:
And thus pay people under minimum wage, which I assume is not permitted.

rolf_f

Father Jack wrote:

So it discrimates against those on NMW...

Pfft - if that annoys you, not only have I used C2W on three occasions, I also get a single occupancy Council Tax discount - 25% per year.

This unfairly discriminates against people who are not allowed to claim single occupancy rates simply because they happen to live in a house with other people.

(If you complain loudly enough, maybe that nice Mr Cameron will eliminate the zero tax rate so those on lower wages can benefit more from C2W)

corriebee1

Rolf F wrote:

Father Jack wrote:

So it discrimates against those on NMW...

Pfft - if that annoys you, not only have I used C2W on three occasions, I also get a single occupancy Council Tax discount - 25% per year.

This unfairly discriminates against people who are not allowed to claim single occupancy rates simply because they happen to live in a house with other people.

(If you complain loudly enough, maybe that nice Mr Cameron will eliminate the zero tax rate so those on lower wages can benefit more from C2W)

guy.spartacus

Father Jack wrote:

So it discrimates against those on NMW...

Yeah - and the 45% tax bracket discriminates against those of us that earn over £150k

If you're only earning minimum wage I don't think spending a chunk of it per month on a bike is the best idea.

dhope

guy.spartacus wrote:

Father Jack wrote:

So it discrimates against those on NMW...

Yeah - and the 45% tax bracket discriminates against those of us that earn over £150k

If you're only earning minimum wage I don't think spending a chunk of it per month on a bike is the best idea.

Well that depends on whether it'd still save you money over public transport. It could be a sound investment.
Free bikes ftw

surrey_commuter

Once you earn over £100k you have your tax free allowance removed at a rate of £1 for every £2 that your earn. This results in a saving of £600 on a bike worth £1k.

That should stoke the politics of envy

guy.spartacus

Surrey Commuter wrote:

Once you earn over £100k you have your tax free allowance removed at a rate of £1 for every £2 that your earn. This results in a saving of £600 on a bike worth £1k.

That should stoke the politics of envy

You've encouraged me to check my C2W scheme - I can get a £1000 voucher for £48.33/month over 12 months

Shame it's Halfords only...(he tells himself)

bendertherobot

It's not a rich tax perk. It's a tax perk. If you earn £11k per year, what's the C2W scheme operating against? It saves you money if you pay tax. It may discriminate if you don't but it's hard to see an answer to that.

xbnm

Its because employers are not allowed to deduct just about anything from your wages for national minimum wage (living wage) calculation purposes whether its entered into freely or not or the employee agrees or not. It all comes down to the interpretation of paid and in particular one made by a high court judge your not paid it if its deducted from you wage before your receive it.

Except PAYE, NIC,CAPS orders and select other items.

surrey_commuter

guy.spartacus wrote:

Surrey Commuter wrote:

Once you earn over £100k you have your tax free allowance removed at a rate of £1 for every £2 that your earn. This results in a saving of £600 on a bike worth £1k.

That should stoke the politics of envy

You've encouraged me to check my C2W scheme - I can get a £1000 voucher for £48.33/month over 12 months

Shame it's Halfords only...(he tells himself)

get yourself some childcare vouchers as well - soon you will be so rich you will not need to go to work

keef66

Well I'm being discriminated against. My employer flatly refuses to entertain a cycle to work scheme! :evil:

guy.spartacus

Surrey Commuter wrote:

guy.spartacus wrote:

Surrey Commuter wrote:

Once you earn over £100k you have your tax free allowance removed at a rate of £1 for every £2 that your earn. This results in a saving of £600 on a bike worth £1k.

That should stoke the politics of envy

You've encouraged me to check my C2W scheme - I can get a £1000 voucher for £48.33/month over 12 months

Shame it's Halfords only...(he tells himself)

get yourself some childcare vouchers as well - soon you will be so rich you will not need to go to work

Got some of them, the full £243/month allowance - and a company car that eats up 90% of my tax free allowance

I am living the dream

kajjal

Rich people don't pay tax which is why they have so much money. Imagine if you could pay an a financial advisor to reduce your income tax + NI to under 5% and how much extra money you would have. You could then pay the financial advisor again to invest it for you tax free and the circle continues.

You wouldn't need a cycle to work scheme

father_jack

wots this mean
http://postimg.org/image/h3mzf0f1n/

bompington

Father Jack wrote:

wots this mean
http://postimg.org/image/h3mzf0f1n/

Wot, the one asking "why are you still single?"

bompington

Kajjal wrote:

Rich people don't pay tax which is why they have so much money. Imagine if you could pay an a financial advisor to reduce your income tax + NI to under 5% and how much extra money you would have. You could then pay the financial advisor again to invest it for you tax free and the circle continues.

You wouldn't need a cycle to work scheme

More hackneyed left-wing lies. I think perhaps you need to read this.
The top 1% of earners in the UK pay over 25% of all the income tax, a proportion that is going up under the current government.

navt

C2W is a salary sacrifice scheme. This is true of all salary sacrifice scheme, not just limited to C2W.

First.Aspect

bompington wrote:

Kajjal wrote:

Rich people don't pay tax which is why they have so much money. Imagine if you could pay an a financial advisor to reduce your income tax + NI to under 5% and how much extra money you would have. You could then pay the financial advisor again to invest it for you tax free and the circle continues.

You wouldn't need a cycle to work scheme

More hackneyed left-wing lies. I think perhaps you need to read this.
The top 1% of earners in the UK pay over 25% of all the income tax, a proportion that is going up under the current government.

That's because the richest 1% are earning proportionally more and more. Its nothing to do with progressive taxation.

rick_chasey

Higher earners gain more from tax breaks shocker.

Stevo_666

Is the OP suggesting that people who don't pay tax should get a tax break on a bike to make life fairer?

father_jack

who says I don't pay tax?

navt

If you are really lucky (like me) you work for a company with a consumer credit license. Why limit yourself to a £1,000 bike(s)?