Cycle to work scheme
Discussion
m444ttb said:
Enrolement for our scheme in 2016 opened last Friday. Still £1,000 max with no top up so I'm not bothering again. Suffice to say we are very much in the position to offer more!
You don't need to buy a bike on the scheme you can buy parts and clothing. My intention is to swap over my chain set on my XC bike and change the brakes. ecsrobin said:
You don't need to buy a bike on the scheme you can buy parts and clothing. My intention is to swap over my chain set on my XC bike and change the brakes.
Unfortunately not - the exemption is only for 'safety' clothing and equipment (i.e. those additional items which make your commuting more safe and secure). HMRC doesn't give a definitive list, but offers the following guidance:
If an employer lends or hires cycles or cyclists’ safety equipment to employees the benefit of this is exempt from tax on employment income[...]
[...]Cyclists’ safety equipment is not defined in the legislation and a common sense approach should be taken when deciding what falls within this description. Examples of items that count as cyclists’ safety equipment include:
- Cycle helmets which conform to European standard EN 1078
- Bells, bulb horns and lights including dynamo packs
- Child safety seats
- Reflective clothing along with white front reflectors and spoke reflectors
- Cycle computer
- Waterproof clothing that is not reflective clothing
- Cycle training
Whilst arguably brakes are required for safety (unless you're a fixie t
t), they don't qualify for the exemption, so your employer / bike shop *shouldn't* allow you to buy regular components with your C2W voucher. For a practical interpretation, see http://www.cycle2work.info/siteemployeefaqs#a12or http://www.cyclescheme.co.uk/help/faqs/cyclescheme....
Edited by schmunk on Monday 12th October 16:07
Jimboka said:
I'm sure a <£1000 bike is perfectly capable of getting most to work and back!
I bet my 1983 steel Peugeot did more commuting miles that 99% of cycle scheme bikes, more expensive bikes have never seen the workplace bike shed...
There's no obligation to use the bike to get to work and back I bet my 1983 steel Peugeot did more commuting miles that 99% of cycle scheme bikes, more expensive bikes have never seen the workplace bike shed...
schmunk said:
ecs said:
There's no obligation to use the bike to get to work and back
There is if you want legitimate tax relief...I'm not sure I could sleep at night if my tax relief wasn't legitimate.
The wording is 'mainly', rather than all journeys -
Employees use the equipment mainly for qualifying journeys; i.e. for journeys made between the employee’s home and workplace, or part of those journeys (for example, to the station), or for journeys between one workplace and another.
Employees use the equipment mainly for qualifying journeys; i.e. for journeys made between the employee’s home and workplace, or part of those journeys (for example, to the station), or for journeys between one workplace and another.
I'm sure there are plenty of examples up and down the country of people that have stretched the definition of safety equipment.
My first BTW voucher included a Deuter backpack as it had a 3M reflective stripe on it. In fairness, I only ever used that backpack for cycling to and from work though.
My latest bike was just over the limit and I paid the difference (£60) as a cash deposit to order the bike. At no point did I think, or was I told, that I was doing anything wrong.
My first BTW voucher included a Deuter backpack as it had a 3M reflective stripe on it. In fairness, I only ever used that backpack for cycling to and from work though.
My latest bike was just over the limit and I paid the difference (£60) as a cash deposit to order the bike. At no point did I think, or was I told, that I was doing anything wrong.
schmunk said:
ecsrobin said:
You don't need to buy a bike on the scheme you can buy parts and clothing. My intention is to swap over my chain set on my XC bike and change the brakes.
Unfortunately not - the exemption is only for 'safety' clothing and equipment (i.e. those additional items which make your commuting more safe and secure). HMRC doesn't give a definitive list, but offers the following guidance:
If an employer lends or hires cycles or cyclists’ safety equipment to employees the benefit of this is exempt from tax on employment income[...]
[...]Cyclists’ safety equipment is not defined in the legislation and a common sense approach should be taken when deciding what falls within this description. Examples of items that count as cyclists’ safety equipment include:
- Cycle helmets which conform to European standard EN 1078
- Bells, bulb horns and lights including dynamo packs
- Child safety seats
- Reflective clothing along with white front reflectors and spoke reflectors
- Cycle computer
- Waterproof clothing that is not reflective clothing
- Cycle training
Whilst arguably brakes are required for safety (unless you're a fixie t
t), they don't qualify for the exemption, so your employer / bike shop *shouldn't* allow you to buy regular components with your C2W voucher. For a practical interpretation, see http://www.cycle2work.info/siteemployeefaqs#a12or http://www.cyclescheme.co.uk/help/faqs/cyclescheme....
Edited by schmunk on Monday 12th October 16:07
I know several people who have simply bought a bike through their limited company - i.e. not cycle to work but just a company asset. Of the two I know particularly well, one bought a £300 town bike and other bought a £3k road bike. In all cases, their tax advisers were happy with that treatment.
Never quite understood why the consumer credit laws apply to a company buying a bike (i.e. Cycle 2 Work) and then allowing you to ride it for a period as long as you accept a deduction from salary. Doesn't feel much different from company cars yet no limit is applied for company cars.
Never quite understood why the consumer credit laws apply to a company buying a bike (i.e. Cycle 2 Work) and then allowing you to ride it for a period as long as you accept a deduction from salary. Doesn't feel much different from company cars yet no limit is applied for company cars.
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