Cycle to work scheme

Mattywsc
Mattywsc Posts: 6
edited February 2019 in MTB general
Apologies if this isn't in the right part of the forum but just wondering if anyone has purchased a mountain bike on the cycle to work scheme and self employed? From Reading a few places it would seem as a self employed individual (my own business) then I'm not eligible for it? Would be a big saving with what I'm looking at and I could actually cycle to my workshop too rather than take my van?

Thanks in advance

Comments

  • slc123
    slc123 Posts: 407
    No you won't be:

    "Why can't those that are self-employed use cycle to work schemes?

    Cycle to work schemes operate as salary sacrifice schemes. This means that in order to take part in a cycle to work scheme you need to pay tax and National Insurance through PAYE.

    As a sole trader, you will pay income tax and National Insurance once a year based on your profits, under Self Assessment. This in effect means that you don't actually receive a salary, and without s salary to sacrifice you're unable to take part in a cycle to work scheme such as Cyclescheme."

    Unless of course...

    "Can I apply for cycle to work schemes if I'm a company director?

    Yes, you can take part in cycle to work schemes if you're a director of a limited company, even if you're the only employee - assuming you pay yourself a salary through PAYE, and that salary exceeds National Minimum Wage after the salary sacrifice is deducted from your gross salary.
    "
    Cannondale Trail 27.5 | 2015
    Titus El Chulo 27.5 | 2017
    Trek Slash 9 27.5 | 2015 (building)
  • The Rookie
    The Rookie Posts: 27,812
    My Brother in law has used the ride 2 work (note HMRC flip flop between calling it ride to work and cycle to work, I use ride to avoid confusion with some profit making schemes trading names) scheme (self funded without using a supplying scheme to milk some benefits) to buy a ride to work bike he then rents from his company as an employee.

    Note he (as employer) can charge himself (as employee) broadly what he wants, and for however long he wants (subject to the FMV caveat), of course you can't use Ride to Work to 'purchase' a bike as its a rental scheme.

    Notes for the self employed are after the introduction in https://assets.publishing.service.gov.u ... idance.pdf

    I wonder if Cyclescheme figure its too hard for them!
    Currently riding a Whyte T130C, X0 drivetrain, Magura Trail brakes converted to mixed wheel size (homebuilt wheels) with 140mm Fox 34 Rhythm and RP23 suspension. 12.2Kg.

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