Cycle scheme news ???

[iendicott]

Hi,

Was talking to a friend the other night who works for the Fire Service and he tells me that Cycle Scheme's in his branch are being put on hold due to some legislation being reviewed by the EU about it being a tax dodge and they are investigating it, so until further notice cycle schemes are being put on hold...

Please tell me this is not true ?

I know that the cost of ownership to buy the bike has gone up lately.

 

[2Loose]

Lots of organisations have taken time out of the scheme to examine guidlines issued by HMRC at various times.
The scheme at my place was put on hold for a month while the beancounters double checked to make sure that they conform to the new guidlines after the announcement last november.

No doubt they will do it again to review the latest valuation guidline that HMRC have issued.
Nobody wants to upset HMRC, they can be quite nasty b****s if you attract their attention.

 

[GrumpyGregry]

read this thread and all will become clear.

As always the reference to the EU is a red herring

 

[gemsno4]

I think this is a separate point. The EU courts have told the UK that employers need to charge VAT to employees on the scheme. HMRC have yet to confirm they will require this, but if they do it makes the scheme less viable for employers as the overall saving to them is less....or they have to charge us as employees VAT on the montly cost. Will take a few weeks for HMRC to clarify their guidance though so for schemes renewing soon may not cause any problems

 

[HJ]

I think this is a separate point. The EU courts have told the UK that employers need to charge VAT to employees on the scheme. HMRC have yet to confirm they will require this, but if they do it makes the scheme less viable for employers as the overall saving to them is less....or they have to charge us as employees VAT on the montly cost. Will take a few weeks for HMRC to clarify their guidance though so for schemes renewing soon may not cause any problems

Taxation in a national issue, the EU has no jurisdiction over UK tax levels, don't believe what you read in the Daily Wail...

 

[gemsno4]

Taxation in a national issue, the EU has no jurisdiction over UK tax levels, don't believe what you read in the Daily Wail...

I don't. I am a VAT consultant (sad as that is) and can confirm that VAT is a european led tax and the UK has to abide by the european legislation. There may be a work around for this but altogether not a great week for cycle to work.

Can't believe I am accused of the daily mail! Guardian and morning star all the way for me ;-)

 

[Norm]

Well, then you should realise that there is nothing for HMRC to charge VAT upon.

Employees sacrifice salary, that is not a VAT-able transaction. Is it?

 

[gemsno4]

Well, then you should realise that there is nothing for HMRC to charge VAT upon.

Employees sacrifice salary, that is not a VAT-able transaction. Is it?

Norm - that's the point of the case - should it be VATable. Specifically retail vouchers. Google Astra Zeneca ECJ or see here. http://www.taxation....llions%E2%80%99

I've clocked off now anyway....

 

[mcshroom]

I know I'm hijacking this thread, but how does the Salary sacrifice and Student Loan repayments match up? I got my payslip today and the Student loan repayment had been reduced in line with my tax and NI. Is this correct?

Having spent time persuading my employer they have to deduct SL repayments from my salary I'd not be surprised if they'd got this wrong.