Cycle to work scheme??

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rsvdaz

New Member
Location
Devon
I have a very small company and with the help of the LBS set up a ride to work scheme ran solely by the company.. the LBS provided all the paperwork incl. the credit agreement..I have used the scheme to obtain a bike and not only has the co. taken care of the VAT they have passed on the savings of the employer NI contributions - I passed this through the company accountants and they didnt really understand the process! - however spoke to the payroll company we use and they did - he just wanted to know how much to deduct at source each month and for how long. It does show up on payslips as a deduction under the c2w scheme.

my questions are:

1. as a director we pay aourselves the min wage and take the rest as dividends..but I also have a salary sacrifice scheme set up for my pension..with that deducted prob takes my take home below min wage..does that matter..is it just gross that counts?

2. I'm in month 3 of 12 month hire agreement....can I start another one?
 

Norm

Guest
rsvdaz said:
1. as a director we pay aourselves the min wage and take the rest as dividends..but I also have a salary sacrifice scheme set up for my pension..with that deducted prob takes my take home below min wage..does that matter..is it just gross that counts?
Yes, of course it matters!

Your company is breaking the law and, as a director of that company, you will be liable for any fines and penalties as you know that it is happening.

I don't get what you mean by "is it just gross that counts?" If you have sacrificed a part of your salary, you have reduced your gross pay. That's the point of sacrificing your salary.:ohmy:

rsvdaz said:
2. I'm in month 3 of 12 month hire agreement....can I start another one?
That depends on the details of your specific scheme. If your scheme allows you to have a second one, and as long as the total amount hired does not exceed £1,000 (unless you have a consumer credit licence) then the legal provisions do allow you to have a second bike for, say, two ends of a rail journey.

Unless you have your own credit licence, DO NOT EXCEED £1,000 OF HIRED EQUIPMENT.

rsvdaz said:
I passed this through the company accountants and they didnt really understand the process!
Can I suggest a review of your providers is in order.
 

rsvdaz

New Member
Location
Devon
cheers Pete it does appear we are being ill advised by our accountants and its something I will be discussing with my Co-Director
 
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