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Employee benefit and the bike scheme works?

What is the income tax paid when the employee takes over the ownership of the bike

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I have to validate information to staff on the bike scheme which the company wants to participate in. I’m not sure about the percentages and finding it difficult getting through to HMRC

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By Anonymous.
19th Sep 2020 01:08

I believe it's covered in the HMRC Employment Income Manual which is available online.

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By WhichTyler
19th Sep 2020 09:45

I know I shouldn't get so worked up about it, but imho avoid the bike scheme if you possibly can. It's a mare's nest of VAT, payroll, salary sacrifice & employment contracts, Fixed asset additions and disposals... And the benefit to the buyer is limited so tends to attract bike wonks cycle anyway but who want to spend £000s on high spec gear, not encouraging people who might not otherwise cycle. I recommend interest free loans (like season ticket loans instead)

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By Dainty Dee
21st Sep 2020 12:51

Thanks very much Anonymous. I shall check for the manual.

I’ve taken note of your advice WhichTyler. I shall discuss with my Director.

Regards

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