Cycle to work scheme - is the RAF a member?

[BluntM8]

Chaps,

I'm away from work so can't ask an adminer. Is the RAF a member of the Govt's Cycle-to-Work scheme?

One rather fancies a new bicycle without having to pay tax, etc!

Blunty

[StopStart]

Nope, 'fraid not. I looked into it recently and the MoD reckon we get enough perks as it is. I think it was also TFD to administer through JPArse.

That said, if you're an MoD civilian then crack on - scheme available to them...

[BluntM8]

No? In that case, permission for lip to wobble, sir?

Oh well. Best do it the traditional way - the secret credit card her indoors doesn't know about!

Blunty

[airborne_artist]

MoD reckon we get enough perksIt's not an employer-funded perk, though. It's paid for through the employer, but the Treasury pays for it as the cost of the bike is deducted from gross pay, not taxed pay.

[lurkposition]

It all shows how old I'm becoming.

We used to be able to obtain bycycles through MT. They were tough old fashioned types (the bikes that is) which were great for jousting competitiions held in the long corridor through Lyneham's OM.

Ah, nostalgic broken collar bones etc!:)

[14greens]

Did suggest that the RAF invest in tricycles with a flat board on the back
use em on the line instead of the LDV
will have several positives!! think of all the money saved by not running around in LDV/Tractors/cars
No diesel costs
no servicing
Good for the environment
Think of the fitness benefits

Worked for the lads out in GAMCO, they could carry tools spares quite easily


could even have them available for tootling round station as well

[ORAC]

It's not an employer-funded perk, though. Companies don't do it for the goodness of their hearts, they do it becuase they save money as well. The employee saves on Income Tax, the employer saves on National Insurance. The saving more than covers the additional expense.

Except, of course, in the MOD where the work would fall on the existing staff and any NI savings would be recouped by the Treasury, so the don't bother - bad luck the members of the Armed Forces, you just lost your Income tax rebate.

[Grabbers]

The NHS can take advantage though. And MoD civilians. Nothing like promoting high value, low impact exercise on the UK's fighting forces. And this is...

[philrigger]

;)
AA

It's not an employer-funded perk, though. It's paid for through the employer, but the Treasury pays for it as the cost of the bike is deducted from gross pay, not taxed pay.

Surely in the case of the Forces the Treasury is the employer.

[c130jage]

Does the guy from the jinglie canteen in Bahrain still deliver food and drink if requested on his bicycle?

[Runaway Gun]

Not to the Deid he don't....

[DucatiST4]

The employer has to pay for the bike upfront though which for the Army/RAF etc could potentially run into hundreds of thousands of pounds that they would have to find from somewhere.

[Grabbers]

Ducati

And the NHS only employ how many? 4/5? Doesn't wash with me dude.

[airmail]

DucatiSt4

No the employer doesn't have to pay upfront, it's done through a third party company whereby you effectively 'lease' the bike over 12 months (upto a maximum of £1000) and once the final payment has been deducted from gross salary then it is yours.

[yarmouth02]

Back in the days

http://www.theliberator.be/BicyclesImages/P61withBikeVannesOct1944.jpg

[higthepig]

Perhaps if they let us get bikes, we wouldn’t be so fat..................

http://www.pprune.org/military-aircrew/383587-fat-troops-unfit-afghanistan.html

[DucatiST4]

Cyclescheme (who my employer uses) generate a voucher which we give to the shop, to make them generate that voucher my employer sends them a cheque for the cost of the bike. So the employer pays for the bike in advance, Cyclescheme look after all the paperwork.

See here:

Tax free bikes for work through the Government's Green Transport Initiative - Cyclescheme, provider of Cycle to Work schemes for UK employers (http://www.cyclescheme.co.uk/employee,faqs.htm)

[pigsinspace]

Haha And how would you get out to Bay 12 with your butty box? Nav Bag and suitcase,

Sorry M cant see you on a bike....

Unless of course the master race sat on the flat back and the ground crew pedaled them....

[airmail]

Ducati

Looks like you can do it both ways! Apologies, only worked for companies where there is a finance company involved and thought that was the norm

[VIProds]

How times have changed. In the 50's & 60's nine out of ten cyclists on Camp would be junior Officers who had the millstone of uniform costs & high Mess bills around their necks, while the NCO's & Airmen drove around in their gas guzzling cars.

[27mm]

On 'yer bike! Every time AFI comes round, all bikes on base have to be hidden away, in case the reviewing officer might see them when he pitches up in his staff car....

[DucatiST4]

Hi Airmail!

I think the employer can use a finance company to pay for the bike and then replay them monthly (at a cost!)

Paul.

[High_Expect]

Would any journo’s care to run with this story???? Sounds like a good point to me. Military denied government scheme designed to encourage healthy living.

It beggars belief. On one hand they’ll happily push through jumping NHS waiting lists for ‘our heros’ but then don’t afford us a perc designed to benefit health.

I would have thought the 'current bun' would love this one.

[Mr C Hinecap]

This has been taken from someone who knows, is well positioned and has asked officially - I'm sure he won't mind me putting it here:

1. A common misconception is that the C2W scheme permits employees to purchase the bicycle tax free, this is not the case. The C2W scheme is a Tax-efficient bicycle loan arrangement which allows the employer to purchase cycling equipment which is then hired to the employees through Salary Sacrifice.

2. Salary sacrifice schemes require an employee to contractually reduce the amount of their Gross salary in exchange for a non-cash benefit. Non-cash benefits may still be taxable unless there is a specific HMRC exemption. For the C2W Scheme this tax exemption has been granted, but only applies if all the following HM Revenue and Customs conditions are met:

a. Employees use the equipment mainly for qualifying journeys (i.e. for journeys made between the employee’s home and workplace, or for journeys between one workplace and another) - that means it cannot be used for your own enjoyment/racing/training it is service equipment.

b. Ownership of the equipment is not transferred to the employee during the loan period.

3. In addition to these specific conditions for the C2WScheme, it is a HMRC stipulation for all Salary Sacrifice schemes that, in order to comply with Tax Legislation, the employee’s contractual right to cash pay must reduce. Therefore salary sacrifice may have an impact on other pay-related benefits such as Maternity Pay, Working Tax Credits or Final Salary-linked pensions. Additionally HMRC states that the employer must not simply meet the employee’s own financial commitments or apply cash remuneration on their behalf.

4. In addition to the HMRC conditions which are central to the implementation of the C2W scheme, there are a number of other impacts which must be considered.

a. Capital Expenditure. As it is the employer and not the employee who purchases and owns the cycling equipment, it is MOD who would fund the initial outlay of Capital Expenditure (although this will be recovered from individuals over the duration of hire period). These costs are dependent on uptake of the scheme. However it is possible that each individual could procure equipment up to £1,000 in value . On this basis, an annual take up of 2,000 people would involve in year outlay of £2million.

b. Contract Tender and competition process. The total value of the business would exceed the EU threshold for advertising of the contract (circa £100K). This would require a full Contract Tender process with associated manpower and expertise requirements and costs. The duration of the process from writing of business requirement to signing contract could be in excess of 18 months.

c. Management and Audit. To operate a purchase, hire and disposal system will have a sustained requirement for management, audit and HR/pay action. This creates additional management overhead costs and headcount.

d. Consumer Credit Act (CCA) 1974. There should be no automatic entitlement for the employee to take ownership of the cycle equipment at the end of the loan period . If after the end of the loan agreement the bike is offered for sale, the employee must pay a “fair market value. ” If this is recovered from pay it must be from Net Salary. VAT must also be paid on the purchase price. This specific restrictions in the CCA complicates the issues surrounding the sale/disposal of bikes (eg what is the mechanism for valuation, should this be conducted by Disposals Services Agency).

e. Impact on existing allowances. Non-taxable benefits cannot be double paid for the same purpose. MOD currently enjoys a specific tax exemption from HMRC allowing the payment of a tax free allowance for commuting journeys. This takes the form of the Home to Duty Travel Allowance (HDT) which includes Motor Vehicle and Cycle rates or payment. HDT travel (Cycle Rate) contributes to the cost of owning, running and maintaining a bike. HDT travel could not be paid in conjunction with the Cycle Scheme as the scheme requires that at least 50% of the journeys on the bike must be qualifying journeys for work purposes.


That should do for now.