Company/govt Bike to work scheme

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Anyone know much about it?

I reckoned it was company buys the bike on your behalf from dealer in the scheme, then your employer takes monthly payments of your top line before tax, plus you dont pay the VAT on the bike either?

Someone told me though you dont qualify, nor does your employer, if the bike isnt used for 50% of the time to actually cycle to work or cycle between offices etc

anyone know better?
 
The term used is 'mainly used for qualifying journeys'.

It seems that your 'someone' has interpreted that to be 50% of the time. Others might interpret it as '50% of journeys'!

Here' an extract from the guidance...

The tax exemption only applies when an employee mainly uses the cycle and cyclists'
safety equipment for qualifying journeys. A qualifying journey for an employee
means a journey, or part of a journey,
 between his or her home and workplace, or
 between one workplace and another,
in connection with the performance of their duties of employment. So, for example,
cycling to and from the station to get to work would qualify. In this case, 'mainly'
means that more than 50% of use of the cycle and safety equipment must involve a
qualifying journey.
Employees are not expected to keep mileage logs but employers should make clear to
them that if they do not use the cycle mainly for qualifying journeys, they may lose
the benefit of the tax exemption. In that event the employer would have to report the
benefit in kind on form P11D, and account for Class 1A NICs, in the normal way. The
employee would be liable for the tax due on the benefit in kind.
 
Last edited:
Foxholer said:
The term used is 'mainly used for qualifying journeys'.

It seems that your 'someone' has interpreted that to be 50% of the time. Others might interpret it as '50% of journeys'!
Click to expand...

Ye I know a little about it, a guy here got his bike that way and he lives about 40 miles away... has never cycled to work.

Everything you have said is about right apart from the numbers.
 
I've set up a couple for colleagues through bike2workscheme.co.uk, basically you're correct the company buys the bike upto £1000 which is then taken from your gross salary (£83.33 per month) over 12 months so depending on your tax bracket could save £400 on a £1000 bike!

They never mentioned anything about 50% of usage being commuting (and let's be honest who's ever going to know anyway!)
 
my future brother in law has had 3 new bikes in 3 years on C2W. He's a home worker.

I thought about it as i've started a 36 mile round trip commute to work a couple of times a week, but i have to weigh it up with other incentives which are more appealing. I also bought a fairly decent bike last year for £500... Kind of fancy a road bike though instead of my hybrid.
 
My company runs the scheme and that is how I got into cycling. I bought a road bike and used it once to cycle to work as I live 30 miles away. Nobody checks how/when you use it, it's really just a perk. Officially you could use it to ride to the station or park&ride, you don't have to actually cycle to work.

I bought a £575 bike and I think I actually paid about £375 for it in total so it's definitely worth doing.
 
Foxholer said:
The term used is 'mainly used for qualifying journeys'.

It seems that your 'someone' has interpreted that to be 50% of the time. Others might interpret it as '50% of journeys'!

Here' an extract from the guidance...

The tax exemption only applies when an employee mainly uses the cycle and cyclists'
safety equipment for qualifying journeys. A qualifying journey for an employee
means a journey, or part of a journey,
ï‚· between his or her home and workplace, or
ï‚· between one workplace and another,
in connection with the performance of their duties of employment. So, for example,
cycling to and from the station to get to work would qualify. In this case, 'mainly'
means that more than 50% of use of the cycle and safety equipment must involve a
qualifying journey.
Employees are not expected to keep mileage logs but employers should make clear to
them that if they do not use the cycle mainly for qualifying journeys, they may lose
the benefit of the tax exemption. In that event the employer would have to report the
benefit in kind on form P11D, and account for Class 1A NICs, in the normal way. The
employee would be liable for the tax due on the benefit in kind.
Click to expand...
Thanks Foxy,

Found this also

Employees should use the bike mainly for commuting to and, if relevant, between work places (at least 50% of the bike’s use should be for work purposes). However, the bike can also be used for non-work purposes and there is no need for employers to monitor individual usage or for employees to keep a mileage log. Please note that employees cannot claim business mileage allowance with a bike that is being hired to them by their employer.


so no record keeping required by either party
 
Excellent timing this post :)

I've been looking into getting a road bike as exercise to prolong the life of my knee (well, more accuratley instructed by the consultant surgeon....).

Bikes seem to be a more expensive hobby than golf!! I've been amazed at how expensive a decent bike is, although using this I should be able to get a better all round bike for the cost of an entry level one with the tax savings.

I was a bit unsure about the commuting element but sure I can get aorund that.......
 
A couple of blokes at my work have just used it and neither will use it for work.
 
in short, i got a £500 bike for £22-26ish per month Net (12 months payments) and never cycled to work once. paid my final fee after 12 months and the bike is mine.
 
NWJocko said:
Excellent timing this post :)

I've been looking into getting a road bike as exercise to prolong the life of my knee (well, more accuratley instructed by the consultant surgeon....).

Bikes seem to be a more expensive hobby than golf!! I've been amazed at how expensive a decent bike is, although using this I should be able to get a better all round bike for the cost of an entry level one with the tax savings.

I was a bit unsure about the commuting element but sure I can get aorund that.......
Click to expand...

Bikes are just another item that seem vastly - and I mean really vastly - overpriced in this country. It's almost as if there's an opportunity for (the equivalent of) 'Virgin Bikes' in the same way that the Cola, Records/CDs, Flights etc were revolutionised!

There certainly seem to be plenty of high-cost bikes about! And I wouldn't be surprised if the Bike to Work scheme hasn't actually contributed to higher cost bikes!

I actually picked up something of a bargain a few weeks ago on Ebay - a Freespirit 'Town Bike' that's ideal for the limited sort of cycling I do, but the sort of bike I'd use for commuting - and have done so in the past, as even the motor-cycle is cumbersome in London! Fine for exercise (of my dodgy knees) too. Still had the QA stickers on the pedals/frame.

While tax incentives can be a good thing, they are not necessarily the 'best' way to go. But if you are a keen cyclist, they could be worthwhile. Seems like there's plenty of abuse of the system happening too - a classic response to Government 'initiatives' imo!

Even Homer's 10 mile each way trip would be do-able though - I've certainly cycled further and regularly, though not to work - and I think is actually (probably the top end of) the sort of trip that would benefit both the user and the environment! Twenty plus minutes by car using finite resources, pouring pollutants out and then taking up valuable 'commercial' space. Forty mins by bike and a healthier user and environment!
 
We have it. I know a load of guys who have done it. Bit of advice,you can go to other retailers other than Halfords that can supply better quality made to order bikes. Best thing to do is go and visit a shop, price up what you want, then fill in the application with the exact amount. If you apply for a grand, you get a grand regardless of how much you actually want... Thatto Heath Cycles in St. Helens, merseyside is excellent if anybody looking is in the area.....
 
I got one a few years back, I live 25 miles away each way. Never ever ridden it too work. No way off policing that at all.
Great scheme, just getting out on mine again after it sitting in the garage for a year or so :P
 
I bought road bike from the scheme 4yrs and you do make a little saviing on the original price,i think its still in place after 12 months you get the option of:

A)return the bike
B)Buy the bike for 25% of the purchase price
C)Continue to rent the bike for a one-off payment of 7% of the purchase price. At the end of 4 years, the bike will be yours with nothing further to pay.

This is final payment options the link shows in more detail http://www.hmrc.gov.uk/manuals/eimanual/eim21667a.htm
 
Doon frae Troon said:
Just wondering if all the acknowledged tax dodgers on here would be first to whinge about tax dodging bankers.
Click to expand...

Because me saving £200 on a bike is the same as Starbucks paying zip Corporation tax of course.

I get sweet FA help from the state in therapy amd care for my daughter, can't offset the cost of private therapy against my tax bill so if you want me to feel bad about doing this I'm afraid you're mistaken.
 
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