Fafda
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
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