Cycle to Work Scheme -Tax Savings on an Olympic Scale

The major message from the Olympics was to inspire a generation. I was therefore motivated to dig my bike out of the shed with the aim of enjoying the countryside that we have recently moved to. My vision of athletically powering around bends was dashed by the merriment of Mrs TTF when she saw me in my Lycra team GB jersey. All of the gear and no idea was the last thing I heard as I wobbled off the curb.

The trip out was fantastic freewheeling down hills with a backdrop of stately homes and a fantastic sunset made me feel like Chris Hoy. However the resulting return journey made me feel more like a little boy as I discovered that the Uttlesford county council are not big on street lighting and the disadvantage of writing down hill is that you must ride back up!

Whilst I lay hyper ventilating on the pavement outside my house I found solace in the fact that the top of the range bicycle laying on its side next to me was acquired effectively at nearly half the retail price. This was achieved through tax incentives under the cycle to work scheme which was being operated by my employer.

THE TAX BIT

If you are interested in purchasing a bicycle under the scheme you will need to rope in your employer. I’m sure your employer would be more than happy with the idea of a healthier happier you so this shouldn’t be a problem.
Next you have to ensure that you meet the following requirements:
You must use the bike and/or safety equipment mainly (more than 50 per cent of the time) for ‘qualifying’ journeys. This means a journey or part of a journey:

between your home and workplace
between one workplace and another
to and from the train station to get to work

If you think you can achieve these requirements (and you don’t have to keep records) then you’ve hit the velodrome jackpot. You simply obtain a quote from a registered cycle shop, order a voucher online and wait for delivery. As the furry faced advert says Simples!

Your employer then “rents” the bike to you (as technically it belongs to them) tax free for a year and then “sells” it to you at the end of a twelve month period. The payments come out of your gross salary and will amount to the cost of the bike. If you are a higher rate tax payer this will result in a 42% saving!

For more info see here:

http://www.direct.gov.uk/en/TravelAndTransport/Cycling/DG_190101

So you have no excuse get out there save some money and get fit! I would however say that although my initial tour de saffron walden was great fun I won’t be shaving my legs just yet!

By Peter Cross

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: