Advantages of the cycle to work scheme: If you leave your employer within the first year Very little price saving but you get an interest free loan for the term up to termination If you buy your bike at the end of the first year Minimal saving with a 12 month interest free loan If you wait for the full depreciation before taking ownership of your bike 25-40% saving on purchase price and a 12 month interest free loan
Good points. Outside of the EU uk government should have more flexibility on vat treatment. Why not remove vat on bikes under £500?
Agreed. Especially if your employer carries the scheme out to the letter. Some seem not to. So it's probably worth checking. I can't see that being members of the EU has had any negative or positive effect on the scheme. So I can't imagine Brexit will have any effect. The main problem is the very British way of carrying something out to completion. Even if it makes a nonsense of the system, we don't care as long as the paperwork is correct. It means people give up trying. It applies to so many things. And the system can STILL be abused. And has been by some of the posters here. The best thing, I think, would be for businesses just to give a one time 'gift' to their employees of up to say £250 for a bike and accessories. Restrict it to the lower paid employees. That would be enough, I think, for those employees to get a reasonable bike and kit to use with it. And allow the company to offset this against tax. In reality, you can get a perfectly good bike at a boot fair for about £10, it may be a bit rusty and steel framed and require adjustment but should be easy to fix.
Overall this is now no better than a lukewarm deal for many people. Surely it's in the interest of the government to get people exercising and cycling is one way. Maybe after Brexit the UK government can make it a little more attractive again.
But the 'cut' they get is virtually nothing on business scales. Just how much money were they loosing. Companies use tax avoidance schemes to avoid paying millions of pounds worth of tax The money they were loosing must have been peanuts in comparison.