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DIY C2W

by timb27
Sat, Dec 20, 2014 23:21
2

Planning to offer a cycle to work scheme at the company I work for. Wondering how hard it could be to do it yourself, which means a) employees can get a better deal on their bikes and b) we can just carry on hiring the bikes to employees for as long as they work here, or until the taxable fair market value is nil (with no deposit).

Also, I read that the upper limit was actually £1200 (£1000 + VAT), whereas most schemes cap it at £1000 including VAT.

Does anyone have experience of self administering a scheme, and have some document templates they'd be willing to share? Or are there very good reasons to pay a big chunk of the money to a 3rd party?

If you're new please join in and if you have questions pop them below and the forum regulars will answer as best we can.

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timb27 | 10 years ago
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Thanks Dave. Appreciate that the schemes are paid out of the purchase price, but it does mean that you have less bargaining power with the shop. Plus the 7% fee to extend the lease by 3 yrs. Plus any admin charges that get added along the way. If it's just a case of filling in a couple of forms, I'd rather that money was used to make the scheme even better for staff.

Also I read that qualifying companies can claim some or all of the VAT back? AIUI you can't then pass that saving onto staff.

We're only a small company of 7 people, so it's not likely to turn into a big admin headache.

Any forms people have used gratefully received.

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dave atkinson | 10 years ago
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worth noting that most third party providers don't charge the company running the scheme, they take their cut from the bike shops. so you probably wouldn't be paying a big chunk of money to anyone.

the actual paperwork is a salary sacrifice and a lease agreement, neither of which are hugely hard to set up.

the group consumer credit licence set up by HMRC to cover the scheme has a limit of £1000 including VAT. you can go higher but you'll need a seperate company consumer credit licence which is a reasonably expensive thing to set up.

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