carolonabike
Senior Member
- Location
- Boldon
Hi, I'm looking for some advice and I'm hoping someone can advise me from a payroll point of view since this is not something I've come across before.
One of our cycle to work members is leaving to take up a job abroad. He's only paid 6 monthly installments.
I have the implementation guidance from the Dept of Transport and I know about calculating the residual value. What I'm wondering is what other folks have done in practice. Am I correct in thinking that if we (as employers) decided not to charge him the residual value he would be only be liable for tax on the balance? He doesn't want to take the bike with him but he does want to buy it so he can sell it and make back some money.
He's quite happy whatever we decide to do but I want to keep his liability down as far as possible.
One of our cycle to work members is leaving to take up a job abroad. He's only paid 6 monthly installments.
I have the implementation guidance from the Dept of Transport and I know about calculating the residual value. What I'm wondering is what other folks have done in practice. Am I correct in thinking that if we (as employers) decided not to charge him the residual value he would be only be liable for tax on the balance? He doesn't want to take the bike with him but he does want to buy it so he can sell it and make back some money.
He's quite happy whatever we decide to do but I want to keep his liability down as far as possible.