RIDE 2 WORK scheme - Help me out. :)
Discussion
A lot of my friends companies are in the scheme. HR usually resists, as they think they will have a truck load of work to do. But there are companies out there (large bike retailers) who do all the paper work and hoop jumping, so HR can continue to drink tea and gossip on everyone's personal lives.
The basics of the scheme, is you are usually limited to £1k, as it is loan to you from your company. Over $1k, and they have to be FSA registered IIRC.
The basics of the scheme, is you are usually limited to £1k, as it is loan to you from your company. Over $1k, and they have to be FSA registered IIRC.
My Mrs is if you don't mind a dropped crossbar and a basket on the front?
Seriously, I do work for a company in the scheme and made use of it last year, but probably won't again as I bought the bike at the end of the loan. Trouble is, there's only one window per year when we can elect to take up the scheme - in June. If come next June you're still in need, I may be able to help. I'm City based too.
Seriously, I do work for a company in the scheme and made use of it last year, but probably won't again as I bought the bike at the end of the loan. Trouble is, there's only one window per year when we can elect to take up the scheme - in June. If come next June you're still in need, I may be able to help. I'm City based too.
I've got one too and I'm a little worried about this buying it back at the end of the term business....it better be a token amount or they're getting back just a frame and some handlebars...I had to replace the rear wheel out of my own pocket and the front tyre & inner tube needed renewing too.
To the OP, very doubtful you'll get anyone to take up your offer as it leaves the bikes registered owner liable for buying the bike at the end of the lease period (see above). Unless your good mates with someone I doubt you'll get an internet buddy to take on that responsibility. Good luck though, it is a very good scheme.
To the OP, very doubtful you'll get anyone to take up your offer as it leaves the bikes registered owner liable for buying the bike at the end of the lease period (see above). Unless your good mates with someone I doubt you'll get an internet buddy to take on that responsibility. Good luck though, it is a very good scheme.
Employer buys bike (of your choice)
Employee rents it from the employer over a fixed period (effectively an interest free loan)
Rental is paid tax free by salary sacrifice (they take money to pay for it)
At the end of the rental period the bike still belongs to the employer but they are allowed to sell it to the employee for a nominal sum (I think HMRC allow this to be as low as 5% of the purchase price) - Or you can just accept that the company own the bike and you borrow it lots?
IIRC the company can claim the VAT back on the bike and claim capital allowances (100% in 08/09 - assuming they've not gone over £50k)
EG
Bike costs £822.50
Net that's £700
Agreed to pay off over say 24 months = 29.17 per month taken from your net salary to contribute to loan.
The company claim back the £122.50 that they've incurred, so no loss to them there, only the cash flow, however, they can claim £147 back in tax on the CA (assuming tax paid at 21%)
You can then buy the bike at the end of the term (or not bother - depends on how fussy work are?)
I think that's how it worked when I looked at it a while ago. I also pretty sure you don't necessarily need to be part of a scheme as such. As long as the employer has a written signed contract in place with the employee, the tax incentives can be used ie No need for these fancy schemes HR are suggesting they don't have in place.
Employee rents it from the employer over a fixed period (effectively an interest free loan)
Rental is paid tax free by salary sacrifice (they take money to pay for it)
At the end of the rental period the bike still belongs to the employer but they are allowed to sell it to the employee for a nominal sum (I think HMRC allow this to be as low as 5% of the purchase price) - Or you can just accept that the company own the bike and you borrow it lots?
IIRC the company can claim the VAT back on the bike and claim capital allowances (100% in 08/09 - assuming they've not gone over £50k)
EG
Bike costs £822.50
Net that's £700
Agreed to pay off over say 24 months = 29.17 per month taken from your net salary to contribute to loan.
The company claim back the £122.50 that they've incurred, so no loss to them there, only the cash flow, however, they can claim £147 back in tax on the CA (assuming tax paid at 21%)
You can then buy the bike at the end of the term (or not bother - depends on how fussy work are?)
I think that's how it worked when I looked at it a while ago. I also pretty sure you don't necessarily need to be part of a scheme as such. As long as the employer has a written signed contract in place with the employee, the tax incentives can be used ie No need for these fancy schemes HR are suggesting they don't have in place.
anonymous said:
[redacted]
I'm not 100%But.
You order a bike through work (invoice to them) max £1k I think.
All you need is a written contract with work to say "I will pay £X per month over Xmonths in accordance with the C2W scheme" Signed employee/employer
This is then an official document that Inland Revenue can accept for tax purposes.
I also think i've stated the salary sacrifice wrongly, I'm sure the employee gets a tax and NI advantage. Time to do some digging I think.
I said:
I also think i've stated the salary sacrifice wrongly, I'm sure the employee gets a tax and NI advantage. Time to do some digging I think.
It must be on gross, therefore the employer takes their money before you get it, saving you tax & NI and saving them employers NI at 12.8% too.Here's the link i've had hidden away in my works favourites 
http://www.dft.gov.uk/pgr/sustainable/cycling/cycl...
Note no.6
And
Basically to be eligible it needs to be a hire agreement, not a hire purchase. I'm under the impression a simple agreement between yourselves would suffice, there are probably pro-formas on the web......
"A Cycle to Work scheme that takes advantage of the 1999 tax exemption does not require the prior approval of HMRC"
http://www.dft.gov.uk/pgr/sustainable/cycling/cycl...
Note no.6
And
Basically to be eligible it needs to be a hire agreement, not a hire purchase. I'm under the impression a simple agreement between yourselves would suffice, there are probably pro-formas on the web......
"A Cycle to Work scheme that takes advantage of the 1999 tax exemption does not require the prior approval of HMRC"
Edited by Dirty Boy on Tuesday 28th October 11:33
Apparently our place don't participate in the C2W scheme because the lawyers have advised that there isn't sufficient clarity in the scheme over who would be responsible for maintenance of the bike and who would be liable if an accident occurred (given that the company own the bike, but the employee has sole use). It seems they are spooked by the potential exposure to the company should an employee have an accident on what is technically a company-owned bike. 
Any arguments I could go back to them with would be much appreciated, although me vs the corporate lawyers does have the look of a one-sided contest to me!
Any arguments I could go back to them with would be much appreciated, although me vs the corporate lawyers does have the look of a one-sided contest to me!
TheGreatSoprendo said:
Apparently our place don't participate in the C2W scheme because the lawyers have advised that there isn't sufficient clarity in the scheme over who would be responsible for maintenance of the bike and who would be liable if an accident occurred (given that the company own the bike, but the employee has sole use). It seems they are spooked by the potential exposure to the company should an employee have an accident on what is technically a company-owned bike.
Any arguments I could go back to them with would be much appreciated, although me vs the corporate lawyers does have the look of a one-sided contest to me!
Blimey. My law firm offer the scheme...Any arguments I could go back to them with would be much appreciated, although me vs the corporate lawyers does have the look of a one-sided contest to me!
smack said:
But there are companies out there (large bike retailers) who do all the paper work and hoop jumping, so HR can continue to drink tea and gossip on everyone's personal lives.
you wouldn't happen to know some names of retailers who do the legwork smack? there are more than a few people here [including myself] who want to take up this scheme but hr can;t be bothered administering it after the fiasco they had with BT's PC scheme. 
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