Fafda

Only available on StudyMode
  • Download(s) : 63
  • Published : December 16, 2012
Open Document
Text Preview
Cycle to Work Scheme implementation guidance
Table of contents
Cycle to Work Scheme implementation guidance.........................................................1 Table of contents........................................................................................................1 Introduction................................................................................................................1 1) Who is eligible? .....................................................................................................2 2) What equipment is included under the tax exemption?.........................................3 3) What value of equipment can be supplied? ...........................................................3 4) Scope of tax exemption .........................................................................................3 5) Setting up a Cycle to Work Scheme......................................................................4 5.1 Salary Sacrifice ................................................................................................4 5.2 Employer's NICs ..............................................................................................5 5.3 Deductibility for the employer.........................................................................5 6) Things to consider in relation to salary sacrifice arrangements ............................6 6.1 The National Minimum Wage (NMW) ...........................................................6 6.2 Benefit entitlement...........................................................................................6 6.3 Withdrawing from a Cycle to Work Arrangement ..........................................7 7) VAT .......................................................................................................................7 8) Can the employee keep the cycle at the end of the loan period?...........................8 9) Consumer Credit Law............................................................................................9 9.1 Consumer Credit Licence ................................................................................9 9.2 Setting up the Agreement...............................................................................10 9.3 Not Hire Purchase - dealing with what happens to the cycles and cyclists' safety equipment at the end of the hire period.....................................................10 9.4 Cancellation Rights........................................................................................11 9.5 Advertising Requirements .............................................................................11 10) Authorisation of a Cycle to Work scheme.........................................................12 11) How long does a Cycle to Work scheme have to run for? ................................12 12) Insurance............................................................................................................12 13) Mileage Allowance............................................................................................13 14) Encouraging More Cycling to Work .................................................................13

Introduction

To promote healthier journeys to work and to reduce environmental pollution, the 1999 Finance Act introduced an annual tax exemption, which allows employers to loan cycles and cyclists' safety equipment to employees as a tax-free benefit. The exemption was one of a series of measures introduced under the Government's Green Transport Plan. The following guidelines clarify how organisations can take advantage of the exemption to implement a Cycle to Work scheme that encourages employees to cycle to work and allows employers to reap the benefits of a healthier workforce. These notes are for guidance only and reflect the tax position at the time of writing and the law as it relates to the provision of consumer credit. The tax exemption refers to cycles...
tracking img