Another C2W Question

[Bromptonaut]

I posted this on one of the other C2W threads but it’s dropped onto page 2 or three so I’ll ask again.



Work for a large gov department. The C2W scheme has been thorough several iterations but is now run by Cyclescheme. Bikes are owned by the department during the 12 month salary sacrifice period. Thereafter they’re transferred to Cyclescheme who take a deposit equal to the yr 4 value in the HMRC table and pass ownership to the lessee after c38months.



It’s well established that the 20p mileage allowance is not payable in respect of a bike owned/provided by the employer. But what about during the period when it is owned by Cyclescheme?



Employer quoting unspecified ‘DfT rules’ says no because the employee is not the legal owner of the bike. But to my mind Approved Mileage Rates/Rules are ‘owned' by HMRC not DfT. Employer happily pays Motor Mileage in respect of cars on HP, hired or even owned by the employee’s spouse.



Any expert on this stuff out there?



Thanks!!!

 

[Norm]

My take is that the vehicle is not yours, so you can't claim.

But then you are paying for wear and tear, so you can claim.

Which doesn't help much.

IMO, if it is not clear in the scheme's rules, I would place a claim on the basis that it is no longer your employer's vehicle, you are responsible for the maintenance and there is no outstanding amount payable, which are what the mileage charges are meant to cover.

 

[Bromptonaut]

Thanks Norm.

 

[Bromptonaut]

Well the official answer from the employer, relying on Cyclescheme for their information is as follows:

Please see the below quoted from section 13. 'Millage allowance' from the Cycle to Work Scheme implementation guidance by the DFT:
Employers can pay up to 20 pence per mile tax free to employees who use their own cycles for business travel. Journeys between home and work are not business travel for this purpose.
Any employee considering joining a Cycle to Work scheme will need to consider whether they would prefer to use their own cycle and be able to claim up to the 20p per mile tax free for any business miles they travel, as opposed to having a cycle loaned to them by their employer.
Employees cannot claim the 20p per mile tax-free mileage allowance for business travel if they use a cycle loaned to them by their employer.
If the bicycle is legally owned by [employing department], finance provider (if the scheme is funded), or Cyclescheme, the employee cannot claim millage until a Market Value is paid to take up the ownership.