Cycle to Work Scheme - UK

[johnnyboy82]

Hi,

The Cycle to Work scheme calculator gives two amounts - the gross, which is higher and the net, which is lower. Can anybody tell me which amount would be deducted from my account?

Thanks

 

[Andy0161]

The gross. The benefits come from the fact that if you have, for example, paid 80 pounds every month into the scheme, thats 80 less of your wages that were taxed, so you make a saving on both income and nat ins tax on that 80 each month. Be careful with it though. Government is changing the rules and making the final bike payment 25% instead of 5%, which makes a big difference on a more expensive bike...