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Re: Cycle Schemes - are they still worth it?
Posted: 19 Mar 2015, 1:24pm
by PH
blackbike wrote:The Cycle to Work scheme has never been worth it from the encouraging cycling perspective.
All it has really done is make buying good quality bikes easier for the typical affluent middle class cycling enthusiasts who would have bought them anyway.
To broaden the appeal of cycling it would probably be better to have a free entry raffle for prizes of bikes restricted to people from less affluent postcodes.
Indeed, many people can't "sacrifice" the salary to get the vouchers as it would put them below the minimum wage and be illegal.
Re: Cycle Schemes - are they still worth it?
Posted: 19 Mar 2015, 2:21pm
by Psamathe
PH wrote:blackbike wrote:The Cycle to Work scheme has never been worth it from the encouraging cycling perspective.
All it has really done is make buying good quality bikes easier for the typical affluent middle class cycling enthusiasts who would have bought them anyway.
To broaden the appeal of cycling it would probably be better to have a free entry raffle for prizes of bikes restricted to people from less affluent postcodes.
Indeed, many people can't "sacrifice" the salary to get the vouchers as it would put them below the minimum wage and be illegal.
I would agree.
Seems to me that if they really wanted to encourage cyclists, make bikes and accessories (maybe with some constraints as to which accessories) zero rated for VAT. Simple, no real admin, no paperwork, costs cycle retailers nothing, helps everybody (including those not working, on low pay, etc.). And I'd imaging the saving to the cyclist must be around the same (at least on bikes). Of course more people would use the scheme, but that is a good thing and what the whole idea is anyway.
Ian
Re: Cycle Schemes - are they still worth it?
Posted: 19 Mar 2015, 2:51pm
by [XAP]Bob
pete75 wrote:Section 5 of the governments guidance to this scheme starts with the following. Note the first two sentences.
"To help employees take advantage of this tax-free benefit, an employer can simply
buy a cycle and cyclists’ safety equipment and loan it to an employee for qualifying
journeys to work. This arrangement means that the employee's normal salary
arrangements are not affected and is sometimes referred to as a ‘salary plus’
arrangement. It may be, however, that the employer wants to recover the cost of
providing the cycle and safety equipment loaned to the employee. Usually this would
be done through a salary sacrifice arrangement. "
Ooh - I might have to keep that in mind if I get a contract that I just submitted...
Re: Cycle Schemes - are they still worth it?
Posted: 19 Mar 2015, 10:53pm
by The fat commuter
The other thing to think about is for those people fortunate to have kids claiming child benefit and earning between £50k and £60k.
For someone with two kids they get £1770 a year. For every £100 over £50k they lose 1% - so that's £17.70. So, If that person is on, say, £55k and they buy a bike for £1k - that will reduce the amount of child benefit that has to be paid back by £177. This is on top of the 42%. Obviously, there's the 7% final fee as well as any surcharge that the shop adds on.