Cycle to Work Scheme SCRAPPED!!

[mlocke]

Hi Guys

My work have offered the scheme once, six months ago. They were due to make the scheme available again in January (just gone).

Then the scheme was reviewed and has been subsequently scrapped due to "tax disputes and the level of complication invlolved".

Hopefully someone here would know a bit more about the scheme generally and be able to let me know if my work are being truthful or if its just because they can't be ar$ed with it anymore.

There is a theory / rumour that the scheme was only brought in when a new member of HR wanted a bike and now they have it they dont want to continue running the scheme.

So, is it difficult to administer, are there tax complications that would force a company to cancel the scheme? I find this hard to believe and if it is true why is the scheme not easier to administer?

Cheers

Locky

[Rob Q]

Locky,

We have it at my work and as far as I am aware the company don't get a direct tax break but running a Cycle2Work scheme incurs no direct costs for employers who also avoid the NI contribution of 12.8% on the value salary sacrificed and achieve the benefits of a green transport or environmental compliance plan. Both parties benefit from the employee being fitter and healthier, and the scheme contributes to a recruitment and retention programme and helps combat absenteeism. Thats my companies official line!!

So it sounds to me like your compnay cannot be bothered

[mlocke]

Hi Rob

That is the impression that I am getting

Its not a small or hard up company. Its a trading organisation with lots of tax people looking for loopholes here there and everywhere so I dont see how a scheme like this can be so complicated for them to administer.

Would really like the opinions of anyone else, especially if your directly involved in running it.

If it turns out that they are being slack then I intend to use all of your advise in an email to the 'man'

IWANT A NEW BIKE AND I DONT WANT TO PAY FULL PRICE!!!

Cheers

Locky

[Dombo]

[quote="mlocke"]
IWANT A NEW BIKE AND I DONT WANT TO PAY FULL PRICE!!!

[mlocke]

Marco,

Im not saying the scheme is scrapped, but is no longer being made available at my work

Dom,

Im not letting the tax decision rule it but I dont want to pay full price. Like Marco said, i want on in the sales and then get a reduction from the scheme

[Elliot M]

Maybe an audit has pointed out there's a potential tax liability?

What happens if the company haven't been checking that the bikes are actually used for commuting, or have been giving them away at end of period rather than offering at full market value (whatever that means)?

[Ben]

If there is a will there's a way

But it's effort, if you have final salary pension schemes, actually want to check it's used for commuting. Then the issue of ownership/cost if the employee leaves during the period

[mlocke]

The scheme has only been in place for a few months therefore nobody who has taken part has made the final payment yet / purchased the bike so this cant be the case.

My understanding from the research I have done is that you dont need to prove that it is used for commuting.

My work dont offer a final salary pension so this is not an issue.

[Dombo]

What has DB pension scheme got to do with C2W?
Probably best to do a couple of work runs on the C2W bike just in case some jobsworth from personnel decides to check

[Ben]

To expand, my understanding would be when an employee leaves the company, if they have not paid the value of the ride to work voucher in full then the company will still own the bike and there would be a question over who should decide a fair price for the bike if the employee wanted to purchase it. I’d have thought the outstanding payments.

If the employee chose not to purchase the bike when they left, (for whatever reason) the company would then own the bike.

I could be wrong here but isn’t the scheme, a salary sacrifice i.e. you are reducing your gross salary hence, a knock on effect on the Final Salary scheme.

I’d be interested to know what they mean by "tax disputes and the level of complication involved". Is this computer says No