Cycle 2 work scheme

[cyclenic]

Very exciting news, i've had my cycle to work scheme application accepted. I will have to wait a little longer before i can get my bike and gear, but i'm very excited.

And for everyones info, apparently (according to my work) you DO NOT have to cycle to work for it to count, it can be used for general fittness and leisure.

 

[shippers]

I'm pretty usre your work is wrong!
You're supposed to use it to commute for at least 50% of your journeys to/from work.Though I'm sure they'll not have someone with a clipboard making notes!

Still, good luck with the bike. What are you getting? (Stand by for a chorus of "oooh, should've got... what about.... you'll be spending £2k next time...)

 

[Stephen-D]

My work does say you need to use it for at least 50% of your journey to work, but underneath they also put "we will not monitor this"

 

[Norm]

And for everyones info, apparently (according to my work) you DO NOT have to cycle to work for it to count, it can be used for general fittness and leisure.

That is not only wrong, it is very wrong.

From the guidelines on the DfT site:

Employees use the equipment mainly for qualifying journeys;
i.e. for journeys made between the employee’s home and workplace, or part of those journeys (for example, to the station), or for journeys between one workplace and another

And

The tax exemption only applies when an employee mainly uses the cycle and cyclists’ safety equipment for qualifying journeys. A qualifying journey for an employee means a journey, or part of a journey,
● between his or her home and workplace, or
● between one workplace and another,
in connection with the performance of their duties of employment. So, for example, cycling to and from the station to get to work would qualify. In this case, ‘mainly’ means that more than 50% of use of the cycle and safety equipment must involve a qualifying journey.
Employees are not expected to keep mileage logs but employers should make clear to them that if they do not use the cycle mainly for qualifying journeys, they may lose the benefit of the tax exemption. In that event the employer would have to report the benefit in kind on form P11D, and account for Class 1A NICs, in the normal way. The employee would be liable for the tax due on the benefit in kind.

You may want to tell your employers that they could be setting themselves up for a world of trouble in what they are saying.

 

[fwgx]

I'm thinking of joining our work cycle to work scheme.

It says that the bike should be used for commuting at least 50% of the time. Not that I have to use it for commuting at least 50% of the time. And it's not monitored anyway.

So even if I only commute on it once a year, as long as I don't use it for anything else more then I'm ok and haven't broken any rules.

 

[addictfreak]

I'm thinking of joining our work cycle to work scheme.

It says that the bike should be used for commuting at least 50% of the time. Not that I have to use it for commuting at least 50% of the time. And it's not monitored anyway.

So even if I only commute on it once a year, as long as I don't use it for anything else more then I'm ok and haven't broken any rules.

Buy the bike and enjoy it, whether you cycle to work or not.

The thing is, not everyone is able to commute by bike. Use it for leisure have fun and get fitter

 

[Norm]

So even if I only commute on it once a year, as long as I don't use it for anything else more then I'm ok and haven't broken any rules.

This is correct, as long as you don't admit that less than half the journeys have been for commuting, then you are good to go.

 

[shippers]

At the end of the day, no-one gives a monkeys what you use the bike for-
You're happy with your cut price, fabulous bike.
Your employer saves money- they don't pay NI and can reclaim the VAT, and they have a happier, more loyal employee
The Government can add another person to list list of happier, greener voters.

 

[killiekosmos]

IMHO the key point is niot to draw too much attention to the small detail. Cycle 2 work should be what it states, it is not "a leisure bike on the cheap" scheme. Like most employers mine does not monitor/record actual use but if HMCR think there is widescale abuse the tax advantages could be stopped.

As others say, get the bike and enjoy it. If you get challenged about not using it to commute then strt using it.

 

[chap]

That is not only wrong, it is very wrong.

From the guidelines on the DfT site:
And

You may want to tell your employers that they could be setting themselves up for a world of trouble in what they are saying.

It's just honest use of a dishonest scheme. It makes the Government be seen as being tough on congestion, health, and climate concerns. It makes participating companies be seen as ethical and green. The poster is going to use the bike sometimes, so were is the harm?

He could just buy the bike and sell it on eBay, but he has decided to be more honest than the originators of the scheme. Kudos to him, and his company.

If this were not a cheap excuse and dissipation of time and money, then it would be rolled out to ALL commuters of this country.

 

[fossyant]

My employer is quids up on my scheme, as I use my bike to commute between sites - so could claim mileage if the bike was mine..... so for the last year, the bike has still cost me the same really, just an interest free loan.... gonna sting them for miles from next month though......... 12 months are up........

 

[chap]

Can one reapply after paying off their interest and tax free loan?

 

[Norm]

Can one reapply after paying off their interest and tax free loan?

Interest? Not sure where that comes into it.

Many schemes (and this is another one which depends on scheme rules) will allow you to get a second bike when the first is cleared. Some schemes have fairly narrow windows during which you can buy a bike, though.

Again, from the DfT page which I posted and you quoted earlier, schemes are allowed to let you have 2 bikes at the same time - for instance, to have one at either end of a train journey. The scheme which I set up did that but I don't think many schemes do take advantage of it, although I think that the £1k limit for consumer credit licences would apply to the total value of equipment loaned at any one time.

He could just buy the bike and sell it on eBay, but he has decided to be more honest than the originators of the scheme. Kudos to him, and his company.

Employers could certainly tell staff that they will not check up on the use, although I've seen one set of scheme rules which did require staff to log their mileage and journeys. Needless to say, not many people went for that scheme.

I wouldn't give kudos to any company which doesn't at least appraise their employees of the legislation and regulations. If Mr Taxman called the OP and he blithely admitted he had never used the bike for commuting following his employers advice, things wouldn't be so clever.

The OP went even further, though, suggesting "for everyone's information" that there was no requirement for bikes rented through the scheme to be used for commuting. Very wrong.

 

[chap]

Interest? Not sure where that comes into it.

Many schemes (and this is another one which depends on scheme rules) will allow you to get a second bike when the first is cleared. Some schemes have fairly narrow windows during which you can buy a bike, though.

Again, from the DfT page which I posted and you quoted earlier, schemes are allowed to let you have 2 bikes at the same time - for instance, to have one at either end of a train journey. The scheme which I set up did that but I don't think many schemes do take advantage of it, although I think that the £1k limit for consumer credit licences would apply to the total value of equipment loaned at any one time.


Employers could certainly tell staff that they will not check up on the use, although I've seen one set of scheme rules which did require staff to log their mileage and journeys. Needless to say, not many people went for that scheme.

I wouldn't give kudos to any company which doesn't at least appraise their employees of the legislation and regulations. If Mr Taxman called the OP and he blithely admitted he had never used the bike for commuting following his employers advice, things wouldn't be so clever.

The OP went even further, though, suggesting "for everyone's information" that there was no requirement for bikes rented through the scheme to be used for commuting. Very wrong.

Nice scheme if you can get it....that's where the similarities end.

I understand that you subscribe to the 'intentions' of the scheme, and that is fine. However, my opinion is that it is a poorly thought out waste of time. It seems to be some select employers that are participating, and many big employers either know nothing of it, nor wish to.

It would be interesting to see the adoption of this scheme within the Civil Service; and whether we now have legions of cycle commuting city councillors and staff. How many politicians have opted for the humble Brommie, as part of the initiative (Mandleson doesn't count he already had his.)

From a basic guess, I am assuming that uptake is rather low. There are some lucky middle class users who can now add that racing bike to their collection for the Sunday sprint, and some other middle class users who can use it for the occasional commute. Across the country however, the picture is very different. And how does this bode in the economic downturn?

This was never meant to be a serious proposal, it was not intended to provide solutions with regards to congestion, national health, nor the environment, and it has not really helped the economy either.

Or are the racks outside the nations Jobcenters filled with bikes from the scheme.

 

[chap]

Nice scheme if you can get it....that's where the similarities end.

I understand that you subscribe to the 'intentions' of the scheme, and that is fine. However, my opinion is that it is a poorly thought out waste of time. It seems to be some select employers that are participating, and many big employers either know nothing of it, nor wish to.

It would be interesting to see the adoption of this scheme within the Civil Service; and whether we now have legions of cycle commuting city councillors and staff. How many politicians have opted for the humble Brommie, as part of the initiative (Mandleson doesn't count he already had his.)

From a basic guess, I am assuming that uptake is rather low. There are some lucky middle class users who can now add that racing bike to their collection for the Sunday sprint, and some other middle class users who can use it for the occasional commute. Across the country however, the picture is very different. And how does this bode in the economic downturn?

This was never meant to be a serious proposal, it was not intended to provide solutions with regards to congestion, national health, nor the environment, and it has not really helped the economy either.

Or are the racks outside the nations Jobcenters filled with bikes from the scheme.

I apologise if I sound curt. It is fine abiding by the intent of the scheme, in fact that is what we should all do. However, I am tired with pathetic half-hearted gestures which do not even attempt to address the situation. Instead they pacify a few people with platitudes and brief nods towards such follies passed off as the grand unified solution.

You can imagine my reactions to the politicians on Question Time