Cycle to Work Through Own Company

[htid]

Hi,

I've read about the different C2W schemes around, but we're only a very small company of 7 people and I'm the only one looking to get a bike. We have an external accountancy company and when I spoke to them, I was told that it's not worth going through a scheme for just me, it's better to have our own scheme that we administer ourselves. Is that actually possible? If we do that, will I still save the 32% (or whatever it turns out to be) from my pre tax wage? Also, if we do this, would the retailer have to pay the 10% that's usually charged when using one of these schemes?

If anybody has used one of these schemes at their company, I'd love to hear about it!

Thanks,
Chris

 

[jay clock]

Yes, I have my own company with a payroll of two. I took the forms off Wiggle or Evans and adapted them for my own use. My accountant said it was fine, and certainly no reason to go through a third party. The Chief Executive Officer/Head Cyclist and Triathlete is the the only employee who has taken up the company's offer (a natty Brompton) so far but his Secretary and Executive Assistant may do so at some point. She may for some odd reason choose a really nice men's carbon road bike and let her boss use it at weekend's when she does not need it for work duties

 

[broadway]

I believe the 10% will be an administration charge applied by the retailed to cover the cyclescheme charge. We have Halfords for our C"W scheme and no administration fee is charged for a bike bought at Halfords, here are some exclusions eg "Online Exclusive prices" Some other retailers accept the Halfords vouchers and may apply a charge eg Condor.

http://www.condorcycles.com/cycle-scheme-faqs

"

We currently accept Cyclescheme, Halfords, On Your Bike, Cycle Plus, Salary Exchange/Salary Extras, Bike 2 Work Scheme, and Cycle Solutions. We may charge an admin fee depending on the scheme and bike chosen. If your scheme isn't listed, please get in touch as we may be able to sign up to it."

 

[htid]

I think you're wrong there - the retailer is charged 10% by the scheme as far as I'm aware. This is how the schemes make their money. I thought that since there will be no scheme and it's just my company buying the bike and me paying the company back, there will be no charge to the retailer. I'll go into my LBS and see what they say, thanks for the help.

 

[jay clock]

if you pm me I will dig out the forms I used

 

[broadway]

I think you're wrong there - the retailer is charged 10% by the scheme as far as I'm aware. This is how the schemes make their money. I thought that since there will be no scheme and it's just my company buying the bike and me paying the company back, there will be no charge to the retailer. I'll go into my LBS and see what they say, thanks for the help.

Wot I said, the retailer applies the admin fee to cover the charge made by Cyclescheme. Hence buy a bike from Halfords thought their C2W, no charge, buy from Condor with C2W there is likely to be a charge.

 

[Specialeyes]

We're a small company (29 staff) and have 11 cyclists on our own, home-grown scheme, based on the guidance from HMRC here: https://www.gov.uk/government/uploa...nt_data/file/11305/cycle-to-work-guidance.pdf (we actually went salary-plus rather than salary sacrifice, but then all the directors are cyclists and we want a healthy workforce too)

The commercially run schemes - either store-specific or transferrable between stores - have to make their money somehow, but there's no reason you can't do it yourself.

Just keep decent records.

 

[htid]

Thanks for the information. If you run your own scheme, can you pay more than the £1000 limit without a consumer credit license (if the employee, ie myself, puts the rest of the money towards it? I know certain cycle schemes allow you to do this and others dont, so what's the deal if you run it yourself?

 

[jay clock]

don't know. But the salary plus option of which I was unaware might be better anyway next time i do it

 

[alans]

I know of a company Director who authorised the purchase of a bike by the company,which at a later date sold* said bike to a company Director.


eta * at a very reasonable price

 

[Specialeyes]

Thanks for the information. If you run your own scheme, can you pay more than the £1000 limit without a consumer credit license (if the employee, ie myself, puts the rest of the money towards it? I know certain cycle schemes allow you to do this and others dont, so what's the deal if you run it yourself?

We cap ours at £1000 - my understanding was that that's the HMRC limit for the schemes in general, but that could just be our accountant (quite sensibly) not wanting to get involved in Consumer Credit Licensing!

 

[vickster]

@htid not getting on with the whyte?

 

[Markymark]

I'm a small business owner and the business bought a bike so I saved the capital on my tax. As the business owns the bike all the accessories and maintenance is deductible too.

I keep the bike at home often, you know, for security.

 

[KneesUp]

Yes, I have my own company with a payroll of two. I took the forms off Wiggle or Evans and adapted them for my own use. My accountant said it was fine, and certainly no reason to go through a third party. The Chief Executive Officer/Head Cyclist and Triathlete is the the only employee who has taken up the company's offer (a natty Brompton) so far but his Secretary and Executive Assistant may do so at some point. She may for some odd reason choose a really nice men's carbon road bike and let her boss use it at weekend's when she does not need it for work duties

It's probably best to not imply that you are planning on committing fraud on a public forum.

 

[Flying Dodo]

Thanks for the information. If you run your own scheme, can you pay more than the £1000 limit without a consumer credit license (if the employee, ie myself, puts the rest of the money towards it? I know certain cycle schemes allow you to do this and others dont, so what's the deal if you run it yourself?

There's no problem in letting the employee top up the extra above £1,000. The only potential issue is that it means the bike is only part owned by the company but in a small company this is less likely to be an issue. Large firms probably wouldn't like it, as it's non standard.

From the HMRC guidelines at :https://www.gov.uk/government/publications/cycle-to-work-scheme-implementation-guidance

3). What value of equipment can be supplied?
There is no limit on the total value of the equipment including the cycle. It is possible
to loan two cycles to one employee if, for example, that employee needed a cycle at
either end of a train journey between their home and place of work. (However, please
see Section 9.1 where the Office of Fair Trading (OFT) has advised that the group
consumer credit licence will cover schemes up to a value of £1,000).

So unless you have a specific consumer credit licence (or rather, authorisation under FCA rules now), the consumer hire bit restricts the maximum amount the employer can pay to the £1,000.

Incidentally, if you need a specially adapted bike, perhaps due to disability or a very specific need for a special bike for work or due to safety reasons, then there is an exemption for the employer to pay more than £1,000, provided that they don't get reimbursement from the employee exceeding £1,000.