Self administered Cycle to Work Scheme - anyone got a policy

Pat Murray
Pat Murray Posts: 95
edited February 2011 in Commuting general
To save me reinventing the wheel, has anyone got a policy for me tweek and then issue to staff?

As the MD of a small company I have already adminsisterd the scheme for myself, but didnt need to sign a contract with myself! I now want to extend it to other staff and dont want to go down the usual providers route and as we have a CCL and therefore have more flexibility in what they can go for.

So if you could help out then please drop me a pm and I'll give you my email details.

Many thanks in anticipation!

Comments

  • you used to be able to download the paperwork from wiggle, i used that the last time i did it. all passed ok after the usual audit at previous year end.

    just checked and it's still there, have a look at this:

    http://www.wiggle.co.uk/h/option/cycletowork#24

    you ought to be able to cut/paste/modify that to suit your needs. The only thing to be mindful of is the threshold of £1K for a credit license, may or may not apply to you.
  • Many thanks, I had googled but had not come across that.
  • If you are self adminstering it in a small firm, is there any cost to you/the firm to administer it apart from time and effort?
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  • nope. no cost other than the time taken to administer the deductions. if anything i believe you should save on employers NI contributions and obviously can reclaim the VAT for the business.
  • pdw
    pdw Posts: 315
    The bikes also count as allowable business expenditure, so if your company is profitable, you can offset them against Corporation Tax - possibly all in the first year too, if you haven't used up your full Annual Investment Allowance.

    If you're setting up a scheme yourself, it's worth remembering that there's no requirement for the company to recover its costs. It could loan the bikes for free, if it wanted to.

    Our company scheme is set up so that the employer's NI savings are passed on to the employee - maximises the benefits and still costs the company nothing overall.
  • t4tomo
    t4tomo Posts: 2,643
    Its pretty simple to do. I set one up a couple of companies ago and we did it ourselves, and this was a company that had about 300 employees in the UK. Just sent people off to buy their own bikes with a letter ti get signed by the bike shop acknowledging they were buying on behalf of the company. refunded them via payroll / expenses and set up the salary sacrifice.

    Just be careful you process leavers correctly and deuct what is owing from taxed income.
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  • lardboy
    lardboy Posts: 343
    pdw wrote:
    If you're setting up a scheme yourself, it's worth remembering that there's no requirement for the company to recover its costs. It could loan the bikes for free, if it wanted to.

    Very good point. Also remember the new HMRC guidelines which now have suggested %age of value of bike after 1 year: http://www.hmrc.gov.uk/manuals/eimanual/EIM21667a.htm

    This seriuosly affects the potential savings by an employee, but if you reduce the monthly payments to take the final payment into account, then you can all come out of it happy.
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  • If you are doing it for your own company there is no need to set up a scheme.

    Company buys bike. Loans it to employee. That's it.
  • frank9755 said:

    If you are doing it for your own company there is no need to set up a scheme.


    Company buys bike. Loans it to employee. That's it.

    Is there any benefit in kind on the cost of the bike?
  • Hi is there any BIK to the employee?
  • Does anyone have any draft contracts for employees they would be willing to share please?
  • Hi is there any BIK to the employee if doing it for your own company?