C2W Scheme - Proof of 50% worth of commuting??

[Soltydog]

, but it does mean you've more money than someone on a lower rate though doesn't it, even if you had even more money last year or whatever

Not necessarily. A couple each earning £35-£40k with a smaller mortgage/rent would have a higher disposable income than my wife & I but would be on lower rate tax It's even possible for a young person living at home with parents paying minimal 'board' on the minimum wage could have more disposable income than us. A persons taxable income does not always relate to free cash available for funding hobbies

 

[PK99]

Not necessarily. A couple each earning £35-£40k with a smaller mortgage/rent would have a higher disposable income than my wife & I but would be on lower rate tax It's even possible for a young person living at home with parents paying minimal 'board' on the minimum wage could have more disposable income than us. A persons taxable income does not always relate to free cash available for funding hobbies

C2W is not about funding hobbies, it is about commuting.

 

[mcshroom]

It is not those sorts of distinctions that are the issue

Why are they not the issue? Could it be because they show this to be less black and white than you are making out?

, it is the keen cyclist with a stable of bikes who already commutes by bike to work who gets a Ribble winter training bike on the scheme (real example of someone who was in my club). that is, clear and simple, stealing from your fellow citizens.

In what way? A winter Ribble is a pretty standard commuter at our place, and assuming more than half the journeys made during the hie period on that bike are to work then it is well within the rules.

 

[broadway]

The last scheme I was in with cycle solutions, they asked 3 questions which determined the final value

That's not what Cycle Solutions say:
End Of Scheme - Extended Hire Agreement
How is the market value for a bike obtained through a Cycle to Work Scheme calculated?
HMRC has published the following ‘Valuation Table’ to be used to calculate the market value of bicycles and safety equipment at the end of the ‘salary sacrifice’ rental period:

Age of cycleAcceptable disposal value percentage
Orignal price less than £500Orignal price £500+
12 Months18%25%
18 Months16%21%
2 years13%17%
3 years8%12%
4 years3%7%

 

[PK99]

Why are they not the issue? Could it be because they show this to be less black and white than you are making out?

In what way? A winter Ribble is a pretty standard commuter at our place, and assuming more than half the journeys made during the hie period on that bike are to work then it is well within the rules.

his intention was to use it as a winter training bike and never use it for commuting - he already had a good stable of bikes and simply wanted another

 

[PK99]

old but makes the point;

http://singletrackworld.com/forum/t...-got-away-with-this-bike-to-work-scheme-story

and from another thread;

"as a mobile service engineer who works from home with a van full of tools my comute is 2metres from garage to van, but i am on my 3rd bike on the scheme,"

 

[Soltydog]

C2W is not about funding hobbies, it is about commuting.

I agree, but Profpointy was assuming that someone on higher rate tax could easily afford to buy a decent bike without using the C2W scheme

 

[theclaud]

I agree, but Profpointy was assuming that someone on higher rate tax could easily afford to buy a decent bike without using the C2W scheme

Well, in that case he's pretty much right, given that it's possible to get a fairly decent bike for most commuting purposes for about £300. Should I add a ?

 

[CopperCyclist]

Well for what it's worth, with all the arguing the scheme worked exactly the way it was intended to with me - I got a bike, I cycled to work, I didn't look back and haven't driven in since* in 3 years +.

*with the exception of a couple of night shifts when I have no option due to childcare, which has only been the last year!

 

[PK99]

Well for what it's worth, with all the arguing the scheme worked exactly the way it was intended to with me - I got a bike, I cycled to work, I didn't look back and haven't driven in since* in 3 years +.

*with the exception of a couple of night shifts when I have no option due to childcare, which has only been the last year!

Great to hear.

It would be a pity if abuses ever led to the scrapping of the scheme.........

 

[Big Nick]

I'm not so sure on the 'stealing from the public' thing

In my case I wouldn't of bought another bike if it wasn't for the c2w so effectively the public wouldn't of benefitted from any further tax from me, presumably some others would be the same and a lot more bikes would be sat around in bike shop stock rooms

Whichever was you slice it the idea was to open more peoples eyes to the option of cycle commuting which it seems to have done. Surely the Government are not naive enough to think everyone who gets a bike on c2w will commute to work on it every/most days, if this bothered them presumably more stringent checks would be inherent in the c2w system?

 

[NotthatJasonKenny]

I get really f****d off with many people, possibly you as well, attempting to and succeeding in abusing this scheme. The whole point of C2W is that you ACTUALLY ride the bike that you buy on the scheme to and from work. It was not intended to be a scheme to buy a nice bike you like the look of just because you can get it a lot cheaper through tax deduction, with no intention of riding it to or from work or perhaps only on a very occasional basis and then quite a few weekend rides of 50 miles where you are not commuting. To me this is fraud plain and simple. It is the likes of me who do commute everyday to work on my bike and whose employer does not offer this scheme that end up paying for this deception. If any one at the HMRC had a half a brain they would put a quick stop to this flagrant deception. The wording of the guidance needs tightening up considerably as people are just taking the p155.

You are entitled to be pissed off, fair point.

My scheme isn't open to company car drivers unfortunately so I can't go on it anyway.

Although, I feel you aren't looking at it correctly. I'm a 40% tax payer and as such I pay a lot of tax, plus I pay extra tax for the use of a company car so all in. All I pay a LOT of tax. I'm not moaning about that as such, I'm in a lucky position and I know it.

But, benefitting by around £400 by going on this scheme would be a drop in a large tax ocean PLUS as I would commute on some occasions leaving my car at home I would be getting one more car off the road for at least a bit more than otherwise and it may encourage others to do the same.

 

[NotthatJasonKenny]

, but it does mean you've more money than someone on a lower rate though doesn't it, even if you had even more money last year or whatever

There are always two ways of looking at it, a working couple who each earn £25k will pay less tax (and have more net income) than a stay at home mum and a Dad who pays 40% tax earning £50k.

 

[PK99]

You are entitled to be ****ed off, fair point.

My scheme isn't open to company car drivers unfortunately so I can't go on it anyway.

Although, I feel you aren't looking at it correctly. I'm a 40% tax payer and as such I pay a lot of tax, plus I pay extra tax for the use of a company car so all in. All I pay a LOT of tax. I'm not moaning about that as such, I'm in a lucky position and I know it.

But, benefitting by around £400 by going on this scheme would be a drop in a large tax ocean PLUS as I would commute on some occasions leaving my car at home I would be getting one more car off the road for at least a bit more than otherwise and it may encourage others to do the same.

if you have a bike already, getting a scheme bike would do nothing to increase your opportunity to cycle commute

 

[NotthatJasonKenny]

if you have a bike already, getting a scheme bike would do nothing to increase your opportunity to cycle commute

True, fair point although tbh I was going to get a folding to keep in the car so if the weather is ok I can ride home and back again so it 'may' have had the desired effect but is a moot point.