Cyclescheme

You are reading a single comment by @Dramatic_Hammer and its replies. Click here to read the full conversation.

•

pjay

The irony on all of this is that it's not much different to the ways that companies try and avoid (not evade) paying certain taxes, or limiting their liabilities. It's just on a smaller/individual scale under the guises of "good intentions".

Hardly the same as it's a scheme set up by the government to encourage people to cycle rather than something invented by a dodgy accountant to save a millionaire from paying their fair share of tax.

The government could make this all so much easier by scrapping these schemes and just getting rid of VAT on all cycling related stuff (even top end bikes).

If they did this the government would lose 20% tax on every bike sold rather than approx 25% on Cycle to Work purchases only.

•

Dramatic_Hammer in reply to @pjay

Can't the [VAT registered] employers claim back VAT anyway, even though they can't pass the saving on the the employee? The employer effectively makes money out of the scheme.

•

Greenbank in reply to @Dramatic_Hammer

Can't the [VAT registered] employers claim back VAT anyway, even though they can't pass the saving on the the employee? The employer effectively makes money out of the scheme.

Not sure about VAT but they definitely make money out of reduced employer NI contributions.

VAT info here: http://www.cyclescheme.co.uk/employers/employer-updates/cyclescheme-hmrc-vat-update-faqs

£500 salary sacrifice on a £30k salary saves the employer £69 in employer NI over a year.

About

Avatar for Dramatic_Hammer @Dramatic_Hammer started