Tax-free bikes?

DangerMouse

Old-Salt
Moderator
#1
Anyone heard anything about the MOD taking part in the following?

http://www.bikeforall.net/content/cycle_to_work_scheme.php
http://www.cyclescheme.co.uk/employee,calculator.htm
http://www.dft.gov.uk/pgr/sustainable/cycling/cycletoworkschemeimplementat5732

The Cycle to Work scheme works thus:

* Your employer signs up for the scheme * You then choose a bike from an approved supplier * The bike is then bought by your employer who reclaims the VAT * You then take delivery of the bike for your exclusive use - provided you use it for qualifying journeys, i.e. commuting to work * The VAT free price is then deducted from your salary by equal instalments over a period of time (typically 18 months), but as you don’t pay tax or NI on the income you forego, this will give you further savings. * After the period of salary sacrifice, the employer may give you the option to purchase the bike at a ‘fair market price’, though depends on the period you have had the cycle loaned to you.

This ‘fair market price’ is usually five percent of the original package price. So, after a 18 month ‘loan’ for a bike package costing £1000, the employee takes full ownership for just fifty quid. This is as yet untested by HMRC.

The actual discount available to an employee will be based upon their own personal tax circumstances (higher tax payers get fatter discounts) and whether their employer can recover all VAT. Some public sector employers, charities and some others may not be able to recover all the VAT.
 
#2
DangerMouse said:
Anyone heard anything about the MOD taking part in the following?

http://www.bikeforall.net/content/cycle_to_work_scheme.php
http://www.cyclescheme.co.uk/employee,calculator.htm
http://www.dft.gov.uk/pgr/sustainable/cycling/cycletoworkschemeimplementat5732

The Cycle to Work scheme works thus:

* Your employer signs up for the scheme * You then choose a bike from an approved supplier * The bike is then bought by your employer who reclaims the VAT * You then take delivery of the bike for your exclusive use - provided you use it for qualifying journeys, i.e. commuting to work * The VAT free price is then deducted from your salary by equal instalments over a period of time (typically 18 months), but as you don’t pay tax or NI on the income you forego, this will give you further savings. * After the period of salary sacrifice, the employer may give you the option to purchase the bike at a ‘fair market price’, though depends on the period you have had the cycle loaned to you.

This ‘fair market price’ is usually five percent of the original package price. So, after a 18 month ‘loan’ for a bike package costing £1000, the employee takes full ownership for just fifty quid. This is as yet untested by HMRC.

The actual discount available to an employee will be based upon their own personal tax circumstances (higher tax payers get fatter discounts) and whether their employer can recover all VAT. Some public sector employers, charities and some others may not be able to recover all the VAT.
Can you really see the MOD spending the staff time to take advantage of this? If you think "yes, they should", then I refer you to the other benefits to which we should have access but don't:

:arrow: Computers (now closed)
:arrow: Childcare vouchers
:arrow: Laundry expenses

Litotes
 

DangerMouse

Old-Salt
Moderator
#3
Litotes said:
Can you really see the MOD spending the staff time to take advantage of this? If you think "yes, they should", then I refer you to the other benefits to which we should have access but don't...
No, of course not - you're right, makes far too much sense... I just thought that before I go out and buy a new bike, I'd check. If I didn't it would be sod's law that I would then discover some all-singing, all-dancing scheme to which I should have applied, but was unable to do so retrospectively. Cheers! :bounce:
 
#4
Another one for the Tree Huggers. :roll:

Could I suggest an alternative policy ...

1. Bicycles have licence plates [cf Singapore, 1960s] and pay road tax. This will help fund the cycle tracks/paths/lanes they never use.

2. Cyclists have insurance, to pay for the damage they cause to other vehicles [either in traffic, or by throwing themselves at vehicle bodywork when they fall off]. This would also cover personal injury caused by cycling on pavements.

3. A minimum age for cycling on public roads. A kid aged about 6 [pratting around doing wheelies] fell off in front of me yesterday ... fortunately the little cu*t fell towards the pavement.

4. Cycling on pavements, or in pedestrian precincts, is a SERIOUS offence, with the punishment including the confiscation of the bicycle.

[/RANT OFF]
 
#5
sophist - a poor rant and pretty dull really.

Cyclists should not pay road tax. Many people also use cycle lanes and the sooner it becomes more part of our culture (like Europe) the better for all.

There are not many accidents on pavements. There are laws prohibiting that activity anyway. Motorists should give a cyclist the berth they do for a horse - do you also hate horse riders?

Laws cannot be a substitute for poor parenting skills.

Cycling on most pedestrian precincts is not actually an offence. A pavement beside a highway is an offence, but it is quite specific in definition.

There have been cyclists longer than there have been motorists. Get over it.
 
#6
You cannot compare riding a horse to riding a bicycle. I ride horses, but not bicycles. I do not like cyclists.

Cyclists array themselves in nauseatingly lurid lycra clothing, which they apparently think gives them some sort of invulnerability, so that they do not need to look behind them when pulling out or turning; they do not need to give signals before manouvering; they do not need to pay heed to traffic signs and signals. Worst of all are cycle couriers, who seem to be under the impression that carrying some document between two offices gives them special rights on the road. Cnuts.

However, I have discovered:

a) Cyclists will pedal at a rate that is both amusing and impressive when charged by a horse and rider
b) Lycra is no protection from a well-aimed crop

On the original question, I suspect that there is more likelyhood of the Army introducing a scheme providing tax-free horses than bicycles, especially in London.
 
#7
Straying off topic a bit but I must agree with ViroBono.

Nothing against cyclists as such however why do they think that riding directly at horses in Hyde park is a good idea? They may be on a cycle path fair enough I'm also on a bridle path with ample space either side.

Half ton of horse vs 11st of bloke no contest, the best they can hope for is a crop to the swede.
 
#8
Mr_C_Hinecap said:
Cyclists should not pay road tax. Many people also use cycle lanes and the sooner it becomes more part of our culture (like Europe) the better for all.
Who are these "many people" using the cycle lanes/tracks/paths? IIRC, they are installed because of some EU Diktat that gives EU funding for establishing them. Shame the bludgy cyclists don't want to use them.
Mr_C_Hinecap said:
There are not many accidents on pavements. There are laws prohibiting that activity anyway.
How many is not many, Sir? I was in my local pedestrianised precint last week, and had to duck 3 of them.
Mr_C_Hinecap said:
Motorists should give a cyclist the berth they do for a horse - do you also hate horse riders?
I spend much of my driving life avoiding both. I live in a designated "Green Lane", 15 mph speed limit, where vehicles give way to horses, cyclists and pedestrians. I live opposite a horse owner. I am talking about the infantile prats on ordinary roads.
Mr_C_Hinecap said:
Laws cannot be a substitute for poor parenting skills.
Some of the cnuts I encounter are old enough to have buried their parents, and certainly old enough to have developed self-preservation skills.
Mr_C_Hinecap said:
Cycling on most pedestrian precincts is not actually an offence. A pavement beside a highway is an offence, but it is quite specific in definition.
Depends on your local laws and bye-laws, Sir.
Mr_C_Hinecap said:
There have been cyclists longer than there have been motorists. Get over it.
Was that a point? When I peel someone off the front of my car as they swerve [mindlessly] in front of me, I shall remember that.
Pedal safely, Mr C. Would that the rest would do the same. :roll:
 
#9
We can slate cyclists all day long because when they make a mistake they usually come a cropper and dont pay for the resulting dents and scratches on your car bodywork. However, wouldnt it be better for everyone if people stopped making short journeys in cars on took to two wheels? The sh!t pumping out of peoples cars (and horses for that matter) is'nt doing any of us any good.

Completely off thread but worth the "eco" rant I think!
 
#10
red_arrse said:
We can slate cyclists all day long because when they make a mistake they usually come a cropper and dont pay for the resulting dents and scratches on your car bodywork. However, wouldnt it be better for everyone if people stopped making short journeys in cars on took to two wheels? The sh!t pumping out of peoples cars (and horses for that matter) is'nt doing any of us any good.

Completely off thread but worth the "eco" rant I think!
Rant on, red_arrse! :wink:

I walk journeys up to 15 minutes or so [even at my age] unless I have a heavy load to collect at the other end .... which is one reason why, not surprisingly, many people use cars instead of feet or bicycles.
 
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