Employers can continue to recover VAT on the purchase of the bicycle and associated equipment
. Employers who have provided bicycles under deduction from salary arrangements are unaffected by the judgment as payments received from employees have always been subject to VAT and will continue to be so.
How do employers benefit from cycle to work scheme?
The cycle to work scheme allows employees to
obtain commuter bikes and cycling accessories through their employer, whilst spreading the cost over 12 months and making unbeatable savings through a tax break
.
Can I get a refund on cycle to work scheme?
Go into the Cyclescheme tab in your Myschemes account and click on ‘Invoices and credits’.
Invoices and credit notes that are available to be refunded will have a “Request Refund” button next to them
like the below (for the equivalent process in Techscheme, see this answer in the Techscheme knowledge base).
Who pays for the bike on cycle to work scheme?
To be able to join the cycle to work scheme your employer does need to register to join Cyclescheme. This is because
the employer
pays for the bike and / or accessories (in the first instance) and they organise for your monthly payments to come tax-efficiently from your salary.
Is my employer part of the cycle to work scheme?
If you are a working adult aged 16 or over, you are eligible to join Cyclescheme.
Your employer needs to be signed up
and your earnings should be more than the National Minimum Wage after the salary sacrifice is taken from your gross salary.
Do I own my bike after cycle to work scheme?
Because it was set up to promote work journeys rather than cycling in general,
your employer technically remains the owner of the bike once you finish the hire period
.
What happens if you don’t use cycle to work voucher?
If they don’t process it,
the bike scheme don’t release the cash
. Ok, your employer is taking payments so, clearly, something has been triggered. Those payments, generally, will be taken from you in order that they can pay the cyclescheme provider for the upfront cost they’ve incurred.
Is cycle to work a salary sacrifice?
Cycle to work operates as a ‘salary sacrifice’ employee benefit
. This means that the employee agrees to give up part of their salary in exchange for a benefit – in this instance the benefit is a bike and/or accessories.
What type of deduction is the cycle to work scheme?
Your employer must pay for the bicycle. The bicycle and equipment must be purchased at the same time from one supplier. Repayment for the bicycle and equipment gets
deducted from your gross salary
. This is your salary before income tax, PRSI, pension levies or Universal Social Charge gets deducted.
What happens to bike at end of cycle to work scheme?
What happens at the end of the Cycle to Work hire agreement?
You immediately take ownership of your bike and pay a fee based on ‘fair market value’
. HMRC has set fair market values that employers must pay to keep the bike.
How do I find my employer code for cycle to work scheme?
If you don’t know your employer’s code try just
searching for them by name
. If you do not know your employer’s code and you cannot find them using search, your best bet is to ask your manager or HR team, or, to contact Cyclescheme.
How many times can you use the cycle to work scheme UK?
There is no limit on how many times you use the scheme during your employment, but as you can only have
one application per 12 month period
, use it wisely!
Do you have to spend all cycle to work vouchers?
You do not have to spend the full value of your eCertificate
but this is not advised as your overall package price and monthly Hire Agreement costs will not be reduced if you underspend.
