What, no novated leases for bicycles?

[Shut Up Legs]

I got one of those corporate emails at work today, reminding me about an information session on novated leases. Apparently, you just need to have a salary over a certain amount, and do at least 5,000km per year in your vehicle. I was a bit miffed that it doesn't apply to non-motorised vehicles, because I've done triple that per year for the last 5 years! . I'm not a big fan of novated leases because I think they just encourage private motor vehicle use, when we should be doing the exact opposite.

Opinions, anyone?

 

[SatNavSaysStraightOn]

ditto... what is a novated lease?
(even the spell checker doesn't like it! )

 

[nickyboy]

Novation is a legal term where, for example, A contracts to sell something to B. B in turn contracts to sell it to C. These agreements can be novated into an agreement for A to sell the thing to C.
Presumably in this case an individual is taking on the lease personally?

 

[Beebo]

My work offers interest free season ticket loans, which is quite nice if you get a £3,000 season ticket bill in January.
They also offer the cycle to work scheme.
Never heard of anyone offering car loans.

 

[nickyboy]

My work offers interest free season ticket loans, which is quite nice if you get a £3,000 season ticket bill in January.
They also offer the cycle to work scheme.
Never heard of anyone offering car loans.

You do know you're taxed on the benefit of the interest free loan don't you?

It's not a car loan that is at issue here. It is the mechanism whereby an individual takes out a lease agreement with a car company. This lease is then "transferred" (novated) to the individual's employer who then deduct the cost of the lease from the employee's salary