Cycle to Work Scheme & Working From Home

[Ming the Merciless]

Though I think they still have the old limit of £1000 in place.

That never was a limit of the cycle to work scheme. Just a credit limit imposed by individual companies. Companies could, did and do offer higher limits

 

[wiggydiggy]

That never was a limit of the cycle to work scheme. Just a credit limit imposed by individual companies. Companies could, did and do offer higher limits

Mine changed to £3k just after I started to work from home

 

[Alex321]

That never was a limit of the cycle to work scheme. Just a credit limit imposed by individual companies. Companies could, did and do offer higher limits

Having looked at the government site linked to above, I now realise that many companies (including mine) impose the £1000 limit because it is the most they can do without FCA authorisation.

I had thought (wrongly) it was actually a limit imposed on the schemes at one time.

 

[MontyVeda]

... I never realised other employers had the restrictions people have mentioned

Maybe years ago, a colleague was talking with the boss about the C2W scheme. Employee was saying how great it is and the boss was quite interested too and allowed the employee to sign the company up for the scheme... Then the boss realised that he'd have to pay for the bike(s) upfront and the employees would repay him bit by bit. "F*ck that!" was his final word on the matter.

 

[Dadam]

Maybe years ago, a colleague was talking with the boss about the C2W scheme. Employee was saying how great it is and the boss was quite interested too and allowed the employee to sign the company up for the scheme... Then the boss realised that he'd have to pay for the bike(s) upfront and the employees would repay him bit by bit. "F*ck that!" was his final word on the matter.

Depends on the scheme. With some the scheme retains ownership of the bike and the employer leases it from the scheme, and obviously then charges the employee through payroll.

 

[spen666]

Another question
If I leave my employer during the active period of the C2W sheme I have to pay off balance of bike in full and lose the tax benefits.

What if you are a civil servant, and move from say the DWP to say the Home Office - is that classed as leaving your employer or is your employer HMG for both roles?

 

[bikingdad90]

Another question
If I leave my employer during the active period of the C2W sheme I have to pay off balance of bike in full and lose the tax benefits.

What if you are a civil servant, and move from say the DWP to say the Home Office - is that classed as leaving your employer or is your employer HMG for both roles?

It depends if you move Tax Office References on your payroll and how you move across?

If it’s a TUPE with existing continuous service preserved and salary ring fencing, possibly not a loss but otherwise likely a default “yes” as you will get a P45 to give to your new employer. Best to ask your employer that hypothetical question.

 

[wiggydiggy]

Another question
If I leave my employer during the active period of the C2W sheme I have to pay off balance of bike in full and lose the tax benefits.

What if you are a civil servant, and move from say the DWP to say the Home Office - is that classed as leaving your employer or is your employer HMG for both roles?

To answer both questions if there is a change in the employment you had that you took the C2W scheme out on then you will pay the outstanding installments out of your final salary, but tax will apply as you will no longer be riding to the employer you had when you joined the scheme.

https://help.cyclescheme.co.uk/article/50-what-happens-if-i-leave-employment

 

[Aescott]

Bear in mind that salary sacrifice will result in your pensionable salary being reduced for the period of the deduction. Might not be huge, but still a factor.

 

[Mazz]

Most people i know who've got a bike on the C2W do not cycle to work. They just wanted a bike on HP.

⬆️ Exactly this at our workplace too.

 

[Arjimlad]

Maybe years ago, a colleague was talking with the boss about the C2W scheme. Employee was saying how great it is and the boss was quite interested too and allowed the employee to sign the company up for the scheme... Then the boss realised that he'd have to pay for the bike(s) upfront and the employees would repay him bit by bit. "F*ck that!" was his final word on the matter.

Similar to the reaction of a finance director when a colleague wanted a £7k cargo bike on C2W!

 

[fwgx]

Isn't it based on the number of rides, not number of miles? If you ride your bike everyday from the bedroom the spare bedroom and back again, that's over 500 rides a year. You can then take it out twice a week on your 100milers and still be at over 80% commuting rides.

 

[vickster]

50% of the bike...so there is a restriction on wheelies or conversion to a unicycle?

 

[Dadam]

At least 50% of the cycle’s use must be for ‘qualifying journeys’, i.e. commuting to work purposes;

[source: link to gov.uk originally posted on page 1]

50% of the journeys, or 50% of the mileage?
"Qualifying journeys": the clear assumption being that your commute journeys are consistent length which isn't necessarily the case.

My interpretation of that specific wording is that if you ride the bike for 1000 miles, 500 miles must be commuting (or going between offices or client meetings, or popping to the shop for more office stationary). Nowhere I've seen does it say you have to use the bike for 50% of your total commutes. Or 50% of your working days.
With that wording, you could drive the car all year, then just do a week of commutes on the bike. As long as your non-commuting mileage was less than that you'd be golden.

Worms, get back in your can!

It's basically a minor tax dodge that unlike a lot of much more egregious and lucrative tax dodges, has a societal benefit. So nobody cares.

 

[ebikeerwidnes]

As far as I can see then there is naff all checking done

if you clearly WFH all teh time then you are probably pushing it too far

but if you could potentially be using it according to the terms - then you are probably OK
even if in reality you drive to work every day and just use the bike for leisure