Tax Free Cycling: - is this for real?



P

Paul

Guest
Is this too good to be true?

http://www.booost.uk.com/

I read about this scheme recently and couldn't believe is
was legit. It is in this months Cycling + and I wondered if
anyone has any experience (good or bad) with it.

In short you get a bike that your employer pays for
from your salary. It's discounted to around 50% of it's
usual value!

TIA

Paul F

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Z

Zog The Undenia

Guest
Paul wrote:
> Is this too good to be true?
>
> http://www.booost.uk.com/
>
> I read about this scheme recently and couldn't believe is
> was legit. It is in this months Cycling + and I wondered
> if anyone has any experience (good or bad) with it.
>
> In short you get a bike that your employer pays for
> from your salary. It's discounted to around 50% of it's
> usual value!

I want a track bike...I wonder if they would bend the rules
as a have a spare front brake?
 
A

Anonymous

Guest
"Paul" <[email protected]> wrote in message
news:[email protected]...
> Is this too good to be true?
>
> http://www.booost.uk.com/
>
> I read about this scheme recently and couldn't believe is
> was legit. It is in this months Cycling + and I wondered
> if anyone has any experience (good or bad) with it.
>
> In short you get a bike that your employer pays for
> from your salary. It's discounted to around 50% of it's
> usual value!

Main use of bike has to be for business use or going to
work. So a nice tourer may be on - or of course a
suitable 'bent.

(Halfords claim flash road bikes and FS mountain bikes are
just about legit, but I wouldn't like to be on the end of a
tax inspection for those).

I looked into the scheme about 4 years ago (not booost, but
the tax bit of
it) but didn't need a new bike at the time, and now I don't
do any commuting miles so no benefit to me :-(

cheers, clive
 
L

-Lsqnot Respond

Guest
On Tue, 4 May 2004 19:59:47 +0100, "Clive George"

>"Paul" <[email protected]> wrote in message news:[email protected]
>text.dial.pipex.com...
>> Is this too good to be true?
>>
>> http://www.booost.uk.com/
>>
>> I read about this scheme recently and couldn't believe is
>> was legit. It is in this months Cycling + and I wondered
>> if anyone has any experience (good or bad) with it.
>>
>> In short you get a bike that your employer pays for
>> from your salary. It's discounted to around 50% of it's
>> usual value!
>
>Main use of bike has to be for business use or going to
>work. So a nice tourer may be on - or of course a
>suitable 'bent.
>
>(Halfords claim flash road bikes and FS mountain bikes are
>just about legit, but I wouldn't like to be on the end of a
>tax inspection for those).
>
>I looked into the scheme about 4 years ago (not booost, but
>the tax bit of
>it) but didn't need a new bike at the time, and now I don't
> do any commuting miles so no benefit to me :-(
>
>cheers, clive
>

Does it need to be done through an employer or can I just
reclaim it via my tax return?

Seeing as I'm about to spend too much money on bikes, I
wouldn't mind the govt returning a bit of my money to help.
--

Transport & Urban Planning Blog

now at http://notonmywatch.blogs.com
 
T

Tony Raven

Guest
[Not Responding] wrote:
>
> Does it need to be done through an employer or can I just
> reclaim it via my tax return?
>

Through your employer I'm afraid as it is their bike that
they are making available to you. There is a company that
has been set up to take the hassle out of it for your
employer if they are worried about the paperwork. Can't
remember off the top of my head what they are called.

Tony
 
A

Anonymous

Guest
"[Not Responding]" <[email protected]> wrote in message
news:[email protected]...

> Does it need to be done through an employer or can I just
> reclaim it via my tax return?

Sorry, no (IMO). The actual concession is for company
provided bikes. See
IR176. (Isuspect the booost lease thing is so that the
employer owns the thing for three years, after
which time it's worth sufficiently little to be
given to the employee - but I could be wrong.)

cheers, clive
 
P

Paul

Guest
> Main use of bike has to be for business use or going to
> work. So a nice tourer may be on - or of course a
> suitable 'bent.
>
> (Halfords claim flash road bikes and FS mountain bikes are
> just about
legit,
> but I wouldn't like to be on the end of a tax inspection
> for those).
>
> I looked into the scheme about 4 years ago (not booost,
> but the tax bit of
> it) but didn't need a new bike at the time, and now I
> don't do any
commuting
> miles so no benefit to me :-(
>
> cheers, clive

How about an Airbourne Torch?

I would use it for dry commuting (and I could stare and
dribble at it on my lunch :) ).

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N

Niv

Guest
> How about an Airbourne Torch?
>
> I would use it for dry commuting (and I could stare and
> dribble at it on
my
> lunch :) ).
>
Exactly, or Litespeed Ghisallo anyone? Niv.
 
A

Anonymous

Guest
"Paul" <[email protected]> wrote in message
news:[email protected]...
>
> > Main use of bike has to be for business use or going to
> > work. So a nice tourer may be on - or of course a
> > suitable 'bent.
> >
> > (Halfords claim flash road bikes and FS mountain bikes
> > are just about
> legit,
> > but I wouldn't like to be on the end of a tax inspection
> > for those).
> >
> > I looked into the scheme about 4 years ago (not booost,
> > but the tax bit
of
> > it) but didn't need a new bike at the time, and now I
> > don't do any
> commuting
> > miles so no benefit to me :-(
> >
> > cheers, clive
>
> How about an Airbourne Torch?
>
> I would use it for dry commuting (and I could stare and
> dribble at it on
my
> lunch :) ).

Mmm - but the first picture I found on the web seemed to
indicate that the PSF has already bagged it...

If you really put more miles on it commuting than any other
riding, and you can persuade your employer, then no trouble
- but I'd want a rather good bike shed :)

cheers, clive
 
S

Simon Brooke

Guest
in message <[email protected]>, Paul
('[email protected]') wrote:

> Is this too good to be true?
>
> http://www.booost.uk.com/
>
> I read about this scheme recently and couldn't believe is
> was legit. It is in this months Cycling + and I wondered
> if anyone has any experience (good or bad) with it.
>
> In short you get a bike that your employer pays for
> from your salary. It's discounted to around 50% of it's
> usual value!

If your employer buys you a bike, the employer can legally
reclaim the VAT on it and just give it to you. There's no
PAYE to pay, and it isn't taxed as a benefit in kind. The
scheme is in the 2003 budget. I've done this for one
employee. I don't really know the details because my
accountant dealt with it, but I don't think it can be in
lieu of normal salary, I think it has to be additional. I
don't know whether you could get one bike a year under this
scheme. You certainly can't get more than one bike in a
year. I'm pretty sure there's no limit to how much the bike
can cost - the bike we did it on was a very fully equipped
Santa Cruz with a retail inc VAT of £2,300. In theory this
is a bike to ride to work but whether you actually have to
ride it to work or not I don't know.

In effect the saving is huge because you don't pay 25%
income tax + a few percent 'national insurance' plus 17.5%
VAT. And seeing you would normally have paid 25% income
tax on the money you use to pay the 17.5% VAT that's
really like 24% so all told the saving is about half the
cost of the bike.

It's for real. Do it.

--
[email protected] (Simon Brooke)
http://www.jasmine.org.uk/~simon/

[ This mind intentionally left blank ]
 
R

Richard Corfiel

Guest
On 2004-05-04, Simon Brooke <[email protected]> wrote:
>
> In effect the saving is huge because you don't pay 25%
> income tax + a few percent 'national insurance' plus 17.5%
> VAT. And seeing you would normally have paid 25% income
> tax on the money you use to pay the 17.5% VAT that's
> really like 24% so all told the saving is about half the
> cost of the bike.

Presumably it can't be applied after the event. Would
have been a massive saving on a trike - and I cycle to
work on it!

- Richard

--
_/_/_/ _/_/_/ _/_/_/ Richard dot Corfield at ntlworld dot
com _/ _/ _/ _/ _/_/ _/ _/ Time is a one way street, _/
_/ _/_/ _/_/_/ Except in the Twilight Zone.
 
R

Russ

Guest
"Paul" <[email protected]> wrote in message
news:[email protected]...
>
> > Main use of bike has to be for business use or going to
> > work. So a nice tourer may be on - or of course a
> > suitable 'bent.
> >
> > (Halfords claim flash road bikes and FS mountain bikes
> > are just about
> legit,
> > but I wouldn't like to be on the end of a tax inspection
> > for those).
> >
> > I looked into the scheme about 4 years ago (not booost,
> > but the tax bit
of
> > it) but didn't need a new bike at the time, and now I
> > don't do any
> commuting
> > miles so no benefit to me :-(
> >
> > cheers, clive
>
> How about an Airbourne Torch?
>
> I would use it for dry commuting (and I could stare and
> dribble at it on
my
> lunch :) ).

I know someone who got a top spec airbourne mtb (circa 2.5k)
through this scheme. I got a road bike.

Russ
 
J

Jon Senior

Guest
Simon Brooke [email protected] opined the following...
> in message <[email protected]
> text.dial.pipex.com>, Paul ('[email protected]') wrote:
>=20
> > Is this too good to be true?
> >=20
> > http://www.booost.uk.com/
> >=20
> > I read about this scheme recently and couldn't believe
> > is was legit. It is in this months Cycling + and I
> > wondered if anyone has any experience (good or bad)
> > with it.
> >=20
> > In short you get a bike that your employer pays for from
> > your salary. It's discounted to around 50% of it's usual
> > value!
>=20
> If your employer buys you a bike, the employer can legally
> reclaim the VAT on it and just give it to you. There's no
> PAYE to pay, and it isn't taxed as a benefit in kind. The
> scheme is in the 2003 budget. I've done this for one
> employee. I don't really know the details because my
> accountant dealt with it, but I don't think it can be in
> lieu of normal salary, I think it has to be additional. I
> don't know whether you could get one bike a year under
> this scheme. You certainly can't get more than one bike in
> a year. I'm pretty sure there's no limit to how much the
> bike can cost - the bike we did it on was a very fully
> equipped Santa Cruz with a retail inc VAT of =A32,300. In
> theory this is a bike to ride to work but whether you
> actually have to ride it to work or not I don't know.
>=20
> In effect the saving is huge because you don't pay 25%
> income tax + a few percent 'national insurance' plus 17.5%
> VAT. And seeing you would normally have paid 25% income
> tax on the money you use to pay the 17.5% VAT that's
> really like 24% so all told the saving is about half the
> cost of the bike.
>=20
> It's for real. Do it.=20

I'm certainly intrigued. How do you convince the employer to
buy you a=20 bike?

Jon
 
P

Paul

Guest
>I'm certainly intrigued. How do you convince the employer
>to buy you a bike?

>Jon

That's my next job. I will try this over the next few weeks
a will report back as to how I get on.

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A

Anonymous

Guest
"Simon Brooke" <[email protected]> wrote in message
news:[email protected]...

> If your employer buys you a bike, the employer can legally
> reclaim the VAT on it and just give it to you. There's no
> PAYE to pay, and it isn't taxed as a benefit in kind. The
> scheme is in the 2003 budget. I've done this for one
> employee. I don't really know the details because my
> accountant dealt with it, but I don't think it can be in
> lieu of normal salary, I think it has to be additional. I
> don't know whether you could get one bike a year under
> this scheme. You certainly can't get more than one bike in
> a year. I'm pretty sure there's no limit to how much the
> bike can cost - the bike we did it on was a very fully
> equipped Santa Cruz with a retail inc VAT of £2,300. In
> theory this is a bike to ride to work but whether you
> actually have to ride it to work or not I don't know.

Read IR176 (google for it). If you don't use it mainly for
riding to work, you're breaking the rules. Of course whether
anything happens or not depends if you get tax inspected and
if they notice.

cheers, clive
 
D

David Brown :O\

Guest
"Jon Senior" <jon_AT_restlesslemon_DOTco_DOT_uk
> wrote in message I'm certainly intrigued. How do you
> convince the employer to buy you a bike?

They take the money from you, pre Income tax, National
Insurance and then can either give you that VAT back or keep
it. If they keep it, they actually make some of the profit.
http://www.bikebiz.co.uk/daily-news/article.php?id=3866
 
D

David Brown :O\

Guest
> I know someone who got a top spec airbourne mtb (circa
> 2.5k) through this scheme. I got a road bike.

Don't you have to buy from certain retailers? That's what it
makes out here http://www.bikebiz.co.uk/daily-
news/article.php?id=3866

Do you know if it has to be a complete bike, I really would
like a new Ti Singlespeed frame?
 
C

Colin McKenzie

Guest
Clive George wrote:

> Read IR176 (google for it). If you don't use it mainly for
> riding to work, you're breaking the rules.

Interesting. Annoyingly, it doesn't seem to apply to self-
employed people.

Colin McKenzie

--
Why believe statistics? Ignore them and you can believe the
damned lies instead!
 
R

Russ

Guest
news:[email protected]...
> "Simon Brooke" <[email protected]> wrote in message news:2pdlm1-
> [email protected]
>
> > If your employer buys you a bike, the employer can
> > legally reclaim the VAT on it and just give it to you.
> > There's no PAYE to pay, and it isn't taxed as a benefit
> > in kind. The scheme is in the 2003 budget. I've done
> > this for one employee. I don't really know the details
> > because my accountant dealt with it, but I don't think
> > it can be in lieu of normal salary, I think it has to be
> > additional. I don't know whether you could get one bike
> > a year under this scheme. You certainly can't get more
> > than one bike in a year. I'm pretty sure there's no
> > limit to how much the bike can cost - the bike we did it
> > on was a very fully equipped Santa Cruz with a retail
> > inc VAT of £2,300. In theory this is a bike to ride to
> > work but whether you actually have to ride it to work or
> > not I don't know.
>
> Read IR176 (google for it). If you don't use it mainly for
> riding to work, you're breaking the rules. Of course
> whether anything happens or not
depends
> if you get tax inspected and if they notice.

Not quite true - if it's your main form of commuting then
you are allowed to use it for leisure purposes as much as
you want. If it's not your main form of commuting then it's
use must be mainly used for commuting (or work travel).

Russ
 
R

Russ

Guest
"Paul" <[email protected]> wrote in message
news:[email protected]...
> >I'm certainly intrigued. How do you convince the employer
> >to buy you a bike?
>
> >Jon
>
> That's my next job. I will try this over the next few
> weeks a will report back as to how I get on.

It's easy enough if you get a bonus - just ask for a bike
instead and the employer will save 12% employer national
insurance contrib. - they're usually a sucker for the
financial incentive.

Of course it helps if you are your own employer :)

Russ