I like Skol
A Minging Manc...
- Location
- Sunny Ashton-under-Lyne
Yes, I can see how the two things are comparable. I'm sure everyone will agree with your view if you explain it that way
VAT on New Bikes - Petition Parliament
- Thread starter Distorted Vision
- Start date
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PaulSB
Legendary Member
- Location
- Chorley, Lancashire
The C2W scheme needs to be altered dramatically. In my experience many who benefit from C2W never commute by bike. I'm 100% in favour of encouraging cycling and bike sales. I cannot for the life of me understand why the club mate riding beside me should pay less for a bike than I do. It's simply unfair.
I worked for a relatively small family business. I approached the owner about introducing C2W, his response was simple "You don't cycle to work." I think he was absolutely right to take this approach. It's basically a huge tax fiddle.
I worked for a relatively small family business. I approached the owner about introducing C2W, his response was simple "You don't cycle to work." I think he was absolutely right to take this approach. It's basically a huge tax fiddle.
Drago
Legendary Member
- Location
- Suburban Poshshire
I dont see why they should be VAT exempt. Its already vastly cheaper than buying and running a car, so the "tempt them out of their car" argument doesn't hold water.
Soltydog
Legendary Member
- Location
- near Hornsea
Not sure if all schemes are the same, but the Halfords scheme isn't open to folk on the minimum wage
It's a salary sacrifice, so if you are on the minimimum wage you're not allowed to earn less. Surely these are the folk who need the benefits the most 
GeekDadZoid
Über Member
Not sure if all schemes are the same, but the Halfords scheme isn't open to folk on the minimum wage
That should be true for any scheme, your not allowed to earn less than the minimum wage.
As many others have said the C2W scheme probably started with good intentions, but it is abused by many and is not fit for purpose for those who may need access to affordable transport.
How about rather than saving 40% on your new bike through salary sacrifice, employers can just offer interest free loans for them? ( I think this may be allowed for Travel Season Tickets already ) this would help everyone at any pay level.
IanSmithCSE
Guru
- Location
- Worcester, Worcestershire
To me, abolition of VAT at the end of this financial year is more likely than it might appear at first glance.
For the Tories to be able to say look we are free to do this now that we have left the E.U. must have a great appeal.
It would also allow for a high street sale, no VAT means a 16.66% reduction in price and surely many businesses would be prepared to top this up to 20%.
Clearly the VAT revenue would have to be recovered by increases in income tax, corporation tax etc. and significantly over compensating would allow for tax increases to repay the COVID support measures debt “without raising taxes”.
Bob Jackson’s closing and reopening has been noted here, so one of their basic frames goes from down from £700 to £585, nice to advertise and customers may be tempted by get it now before they start noticing the increase in their income tax.
In the past one big problem with abolishing VAT has always been cash flow for both HMRC and businesses, the business have stock that they paid VAT on to buy but can’t charge the customer when they sell and HMRC can't afford to refund the whole quarter's VAT revenue.
But the extensive borrowing to required to refund VAT has already partially occurred. Many businesses have been sitting on stock for longer than their VAT accounting period and have already been refunded.
As over time VAT has crept up and at 20% in England it is towards the higher levels, most countries are at this level or lower, although some E.U. countries have higher rates for example 25% Denmark. It is not clear to me how much an increase in VAT would be received, with most Sora equipped bikes already over £1,000 in many LBS I am already thinking “Wow, that’s a lot”. It is not that I dislike Sora, I just expect in on sub £700 bikes.
The Government has a rare opportunity to redesign the tax system, with Rishi Sunak, whose working life has been as an investment banker, doing the sums and Boris talking nonsense in a positive and enthusiastic way.
Unlike most times when tax changes are hated by many, the COVID debt is obvious to all and like most political issues, most people aren't interested in the details of the solution but will accept that it needs money to be raised somehow.
Exactly how much a new system would raise is obviously going to depend on your politics but you could easily sneak in 10% more or less for health, defence, policing etc without most people being that bothered.
For the Tories to be able to say look we are free to do this now that we have left the E.U. must have a great appeal.
It would also allow for a high street sale, no VAT means a 16.66% reduction in price and surely many businesses would be prepared to top this up to 20%.
Clearly the VAT revenue would have to be recovered by increases in income tax, corporation tax etc. and significantly over compensating would allow for tax increases to repay the COVID support measures debt “without raising taxes”.
Bob Jackson’s closing and reopening has been noted here, so one of their basic frames goes from down from £700 to £585, nice to advertise and customers may be tempted by get it now before they start noticing the increase in their income tax.
In the past one big problem with abolishing VAT has always been cash flow for both HMRC and businesses, the business have stock that they paid VAT on to buy but can’t charge the customer when they sell and HMRC can't afford to refund the whole quarter's VAT revenue.
But the extensive borrowing to required to refund VAT has already partially occurred. Many businesses have been sitting on stock for longer than their VAT accounting period and have already been refunded.
As over time VAT has crept up and at 20% in England it is towards the higher levels, most countries are at this level or lower, although some E.U. countries have higher rates for example 25% Denmark. It is not clear to me how much an increase in VAT would be received, with most Sora equipped bikes already over £1,000 in many LBS I am already thinking “Wow, that’s a lot”. It is not that I dislike Sora, I just expect in on sub £700 bikes.
The Government has a rare opportunity to redesign the tax system, with Rishi Sunak, whose working life has been as an investment banker, doing the sums and Boris talking nonsense in a positive and enthusiastic way.
Unlike most times when tax changes are hated by many, the COVID debt is obvious to all and like most political issues, most people aren't interested in the details of the solution but will accept that it needs money to be raised somehow.
Exactly how much a new system would raise is obviously going to depend on your politics but you could easily sneak in 10% more or less for health, defence, policing etc without most people being that bothered.
Drago
Legendary Member
- Location
- Suburban Poshshire
^^^ That was going really well, until the second sentence where you mentined politicians....
If there is something to me muffed up, a party politcian will do their best to muff it up, if for no other reason than they are beholden to an electorate. This means there is a vested interest in not doing the right thing if if is counter to the will of that electorate.
This is why we need a benign dictator, a sort of Mother Theresa but in a leather jacket and brass knuckles.
If there is something to me muffed up, a party politcian will do their best to muff it up, if for no other reason than they are beholden to an electorate. This means there is a vested interest in not doing the right thing if if is counter to the will of that electorate.
This is why we need a benign dictator, a sort of Mother Theresa but in a leather jacket and brass knuckles.
