VAT on New Bikes - Petition Parliament

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screenman

Legendary Member
I expect to see far rise in the not to distant future.
 

I like Skol

A Minging Manc...
What is the OP asking for, more VAT, less VAT, no VAT? Give us a clue....

As Screenman points out, tax cuts will be difficult and unlikely given the mess the economy is in and why should bikes be given special treatment?
It would effectively be a rich man's benefit if VAT was knocked of bicycles. It tends to be the well off with disposable income that buy the more expensive bikes with the larger VAT sums, whereas the less well off perhaps buy lower value bikes where the VAT element does not equal hundreds or even thousands of pounds!
 

TempleDancer

Active Member
How so? Isn't it open to anyone employed by an organisation providing the scheme?

Higher rate tax payers get a greater discount (as it is a pre-tax deduction from your salary).

Therefore on a £1000 bike, I'd pay £750 overall, whereas a higher rate tax payer would only pay £650.

But to address the wider point, I'd rather any investment be made in cycling infrastructure rather than reducing the cost of bikes at retail. They are horrifically overpriced at the mid to high end, but if you set your pride aside, you can pick up an entirely serviceable bike from the likes of Decathlon or Go-Outdoors for a reasonable sum.
 

Profpointy

Legendary Member
How so? Isn't it open to anyone employed by an organisation providing the scheme?

It only pays if you're on 40% tax by the time all the middle men have taken their cut. People on 40% tax use it to by a nice bike, often as not, as a toy which they can easily afford. Poorer people are likely buying much cheaper bikes, perhaps secondhand, so can't really benefit.

For what it's worth I did avail myself of the scheme and bought a very nice Condor fixie and rode it to work daily for 5 years, but I can't pretend it wasn't a middle class tax fiddle.
 

vickster

Legendary Member
Higher rate tax payers get a greater discount (as it is a pre-tax deduction from your salary).

Therefore on a £1000 bike, I'd pay £750 overall, whereas a higher rate tax payer would only pay £650.

But to address the wider point, I'd rather any investment be made in cycling infrastructure rather than reducing the cost of bikes at retail. They are horrifically overpriced at the mid to high end, but if you set your pride aside, you can pick up an entirely serviceable bike from the likes of Decathlon or Go-Outdoors for a reasonable sum.
But the higher tax rate payer pays more tax regardless.
Might as well just scrap it (I'm self employed so can't use so makes diddly difference to me ;) )
 
OP
OP
Distorted Vision
I meant exempt / zero rated or reduced VAT rate.
VAT on condoms was reduced to 5% around 15 years ago to encourage use.

I think the Cycle to Work scheme is too narrow.
 
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