Anyone started their own bike to work scheme?

[Chris71]

Hi,

Has anyone self employed, or running a small limited company (.....mine has fully two employees in it!) started their own bike to work scheme? Is it worth doing on that sort of scale, or does it only work with big companies?

Chris.

[bigandclever]

Can't remember all the details because my accountant did it, but here goes...

Assuming you're thinking of a salary sacrifice scheme (rather than just your company buying the bike, reclaiming VAT, making use of capital allowances and your company lending you the bike (which is obviously much more straightforward))

You have to be on PAYE.
You have to be on more than minimum wage.
You should really be doing more than 50% of your cycling on qualifying journeys (ie in connection with your work)
If you want a bike over a certain amount (£1000 inc VAT?) your company needs a Consumer Credit Licence that costs an amount (£250?). Bikes under that amount you can get a different variation of the licence for free from the OfT
Erm, you don't need to tell the taxman that you're doing the scheme.
What else.......?
Is it worth it? Probably, I'll let you know in a year or so whether the paperwork ballache actually offsets the cost of the bike. But as I say, my accountant does that. Though I also claim mileage at 20p a mile, so that helps.

[Chris71]

You have to be on PAYE? My financial incompetence will show here, but I think I would class as a normal salaried employee, even though it's basically only me (I'm a contract engineer)

How much of a saving do you stand to make comparitively through the two different suggestions? Surely they won't bother to check how frequently you cycle to work? Personally, as I live a long way from work, I would indeed set off on the bike, cycle a few miles to my rented garage, then get the car out!

[sjg]

There is absolutely no onus on the employer to check if or how often the employee uses the bike to ride to work.

[bigandclever]

Chris71 said:

You have to be on PAYE? My financial incompetence will show here, but I think I would class as a normal salaried employee, even though it's basically only me (I'm a contract engineer)

Don't know the what and wherefores, just that you need to be on PAYE.

Chris71 said:

How much of a saving do you stand to make comparitively through the two different suggestions?

Back of fag packet maths shows I should cover the cost of the bike (£1700) over the 3 year loan period.

Chris71 said:

Surely they won't bother to check how frequently you cycle to work? Personally, as I live a long way from work, I would indeed set off on the bike, cycle a few miles to my rented garage, then get the car out!

sjg said:

There is absolutely no onus on the employer to check if or how often the employee uses the bike to ride to work.

Guess it all comes down to risk - strictly speaking, it's a scheme that gives tax and NIC advantages. If the taxman investigated your business and found that (you) the employer couldn't correlate the bike with business use, then Hector would be unhappy. Chances of this happening are, clearly, absolutely remote but hey - the taxman is one person you don't piss off I wouldn't imagine you fiddle your NIC's and tax in other ways.... as I say, I claim mileage so I keep a record anyway.

[taffyracer]

Yes I have, all of the above but you can have a bike over 1k without having to have a CC licence, the employee simply pays the difference direct to the shop, that's what I did. Bike was £1,200 and I will have ended up paying just over £700 in total, so roughly 42% saving, its a cracking scheme and well worth joining or setting up, I now have 3 other staff that cycle to work as well.

Its a win win situation as the employer saves on ENIC and gets to put the bike on the balance sheet as an asset and the employee gets a reduced bike wiht 0% credit and No Vat

Edited by taffyracer on Saturday 25th August 08:21

[Turbo5]

Plenty of info on here, our company have introduced it. If you are interested I can send you the info we have on our network. (you would have to wait until Tuesday though, I have left my laptop at work)
http://www.wiggle.co.uk/CustomerServices/cycle2wor...

[_daveR]

Turbo5 said:

Plenty of info on here, our company have introduced it. If you are interested I can send you the info we have on our network. (you would have to wait until Tuesday though, I have left my laptop at work)
http://www.wiggle.co.uk/CustomerServices/cycle2wor...

Ahh you work for Wiggle? Cool, Ive been reading all your info on this today.

I run a Ltd Co doing Software QA Consultancy, only myself employed by the company and I want to get a new hardtail in addition to the Yeti which is too much for riding to work!

Any chance you can mail me any additional stuff/info you may have?

Edit: Just seen you have to pay yourself more than min wage after the salary sacrifice, which I dont do so this is a no go for me!

Edited by _daveR on Friday 31st August 15:19