Cycle to work scheme, has anybody set one up?

[therams]

Thanks HF2300, its good to hear that somebody has successfully set up a scheme. I have contacted our accountants about setting up the PAYE side of things. As a director I pay myself a salary, so will get some of the Tax benefits.

What other paper work is needed? I have a copy of an example hire agreement and I know that I need to contact the Tax man once the scheme is up and running to confirm the the NI / Tax status.

Is there anything else I should be aware of?

 

[HF2300]

From my experience the PAYE side is easy in that it doesn't involve lots of extra paperwork or anything, but you have to pay attention and make sure it's done correctly because there are some tricky wrinkles.

You don't have to contact the HMRC, you can just run it, but if you do contact them once the scheme's set up they will comment on whether it's right or not. The really important point is that the gross salary is reduced in return for a benefit in kind, and that there is no right for the employee to own the bike at the conclusion of the agreement - that's completely outside the scheme.

Most people seem to run three main pieces of paper - an order form, a list of equipment ordered / illustration of salary sacrifice, and the hire agreement. It's the last that's the important one. It's a good idea to pull as many different sample hire agreements off the web as you can, as they vary quite a lot and it'll give you an idea what you do and don't want to put in yours.

I haven't seen Beancounter on here recently, but he was setting one up and I sent him some forms - perhaps he'll chip in as well. Catrike UK knows about things from an LBS point of view.

 

[Riding in Circles]

The tax office should be able to provide all the info including sample hire agreements.

 

[HF2300]

Incidentally, salary sacrifice is a pretty common and long established practice, it isn't just for Cycle to Work; so any payroll company or accountant / book-keeper with payroll experience should be able to do salary sacrifice correctly with little effort.

Catrike, I don't think the HMRC will provide sample hire agreements; I think they'd see that as an area they can't give advice on.

 

[therams]

Thanks everybody, that's fantastic information. I will look at pulling together the documentation today, then I can go shopping at the weekend!

Once the scheme is set up I will post back with anything that I have learned.

Thanks again!

 

[Riding in Circles]

Incidentally, salary sacrifice is a pretty common and long established practice, it isn't just for Cycle to Work; so any payroll company or accountant / book-keeper with payroll experience should be able to do salary sacrifice correctly with little effort.

Catrike, I don't think the HMRC will provide sample hire agreements; I think they'd see that as an area they can't give advice on.

I'm pretty sure that sample agreements were provided as part of the original government guidelines.

 

[HF2300]

Maybe you're right. I just haven't come across any in all the trawling around I've done, and HMRC specifically say they can't give advice on a salary sacrifice before it's set up, but I guess examples may have been offered.

 

[dnp20116]

Cycle to work scheme

Hi I set up and run our scheme, (we are a charity with 35 employees) I decided to go with Cyclescheme which has a network of partner shops which participate. By choosing them it means that all employees are free to go to any partner shop rather than being restricted to the schemes run by big retailers such as Evans.

 

[beancounter]

I haven't seen Beancounter on here recently, but he was setting one up and I sent him some forms - perhaps he'll chip in as well. Catrike UK knows about things from an LBS point of view.

Hello!

There's nothing to it, once you've established paperwork for the Hire Agreement and the Payment Agreement.

We have 5 of us on ours now and we all bought exactly what we wanted from bike shops local to each of us.

bc

p.s. I'm on the forum every day, I just don't always have anything interesting to post...

 

[HF2300]

Hi BC, was that stuff helpful in the end? Any other wrinkles?

 

[beancounter]

Hi BC, was that stuff helpful in the end? Any other wrinkles?

It was great thanks. No wrinkles! Couldn't have been easier.

bc

 

[therams]

Fantastic, my mind is made up. We can admin the scheme ourselves!

Thanks everybody!

 

[therams]

Well the bike was purchased this afternoon, will deal with the paper work on Monday. I got a specialized allez sport. I rode all the specialized bikes plus the trek 1.2 and 1.5. I was discouraged from getting a triple, but looking at the ratios think i have made the right choice.

Anyway, very happy got the bike, pedals, armadillo tires and lights for just over £700, before the scheme.

The only downer, got carried away on the way home, took a mini roundabout at normal MTB speed, lost the back wheel and slid across the road! Shifter, pedal and quick release scratched. Sore hip. I guess the thin wheels have less grip


Still very happy though, cant wait till Monday, thanks!...