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@JonoMarshall - I agree. An utterly unforgettable experience but rather difficult to put into words!
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@.ptn
"8) Can the employee keep the cycle at the end of the loan period?
There should be no automatic entitlement for the employee to take ownership of the cycle and cyclists' safety equipment at the end of the loan period. If the loan agreement (technically a hire agreement under the Consumer Credit Act 1974 (CCA)) allows for ownership of the cycle and cyclists' safety equipment to pass to the employee upon the exercise of an option, the doing of any other specified act by either party to the agreement, or the happening of any other specified event, the resulting agreement is likely to be hire purchase in which case the tax exemption available for a loaned cycle may not be available.
However, at the end of the loan period, the employer may choose to give the employee the option to purchase the equipment. Typically this would be offered at substantially less than the original value of the equipment, but to prevent a taxable benefit in kind arising as a result of the transfer of ownership the employee must pay the employer the fair market value of the equipment. No tax relief is available to the employee for the purchase so, where the price is recovered from salary, it must be deducted from their net salary. VAT will also be payable on the purchase price by the employee on the supply by the leasing company or the employer as owner of the equipment.
Alternatively, the employer may wish to allow their employees to continue to use the cycles and cyclists' safety equipment you have supplied after the initial loan period has ended, without transferring ownership. As long as the employee continues to meet the conditions of the tax exemption (see section 4 above) no tax charge will arise."From the link I gave above. Doesn't come any clearer than that to me.
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This looks legit to me:
http://www.dft.gov.uk/pgr/sustainable/cycling/cycletoworkschemeimplementat5732?page=1
Even deals with the transfer of ownership at the end of the lease period.
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@.ptn loads of solicitor's firms have these schemes so they are certainly not a scam. I am certain that the person at HMRC that the FD spoke to was talking rot (if he ever did). There are numerous examples of tax rules and schemes being used (legitimately) for other uses and I am sure that the FD uses a few himself in the business. I suspect that he has made his mind up before he even investigated it so you are perhaps onto a hide into nothing here.
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[URL="http://www.londonfgss.com/member7969.html"][/URL]
1. Buddha Fingaz
- shootthebreeze
- spagettihoops
- Skully of the Wilderness
- pajamas
- Jung
- wools
- marcom
- Eididididdieiddie
- Sasmon
- (46) Cornelius StrawberryFoot
- Gustav
- dj
15. - huge
Just gotta check the diary but have got to get some miles i before the DD.
- shootthebreeze
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@rocker9455 - no problem but its not up to me is it?
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dibs on the crumpler