No, the scheme cannot take your wages below NMW.
Cycle To Work Scheme Being Reduced? - UK
- Thread starter Fangs2k
- Start date
- Status
HappyCamperIan
Member
Ahh yes, the affordability test. Thank you.
deertrackdoctor
Active member
My employer set there own limit at £3K is there any details of what figure will be the new maximum ?
- Thread starter
- #64
As ever with this stuff, no detail until budget day, or more likely in the full budget statement if it even makes it.
Speculation would be to adjust the original £1k limit when the scheme was launched for inflation, so around £2k, but again just a guess.
HappyCamperIan
Member
My guess is it won't even be mentioned...but I have been wrong many, many times
We had similar system in Finland, it boosted our bikes sale, created more jobs and hopefully, made people ride more bikes and even commute by bike instead of cars. It costed around 30 millions per year for tax payers and brought 60 million back. Our governement decided last spring that it will not be continued. All shops had stocks full of bikes for summer and after that announcement bike sales crashed. Well played.
- Thread starter
- #67
Yes, I’m hoping that sense will prevail and they’ll look at the benefits of the scheme and not just the costs.
But, as my wife often tells me, hope is not a strategy!
A 'friendly' LBS will sell you whatever bike you want, whatever your company cap. If the bike you want is £4.5k but your cap is £3k, your LBS 'sells' you a £3k bike on paper, you pay the rest and walk out with your £4.5k bike. Granted, you wouldn't save as much as if you had a 4.5k cap, but it knocks a hefty chunk off the total price nonetheless.
Thats just a rumour of course.
Yes or 2 bikes a lot of folk like a good fiddle
LeftItLancs
Active member
Secretary of State for Health and Social Care Streeting wants to steer the NHS towards a preventative health care model, and which makes sense. However, why on earth would the chancellor 'iron fist' Reeves target an initiative that encourages people to get off their arses and get more active, it is yet more muddled logic from politicians.
It's a demonstrable fact that a 'fitter' population use less NHS resources.
As for Labours so-called green initiatives, yeah discourage people from buying electric bikes, that makes sense...
I also had no idea the more you earn, the larger the discount, and surely it should have been the other way round.
It's a demonstrable fact that a 'fitter' population use less NHS resources.
As for Labours so-called green initiatives, yeah discourage people from buying electric bikes, that makes sense...
I also had no idea the more you earn, the larger the discount, and surely it should have been the other way round.
HappyCamperIan
Member
Yes, if would appear to be another own goal if they do remove/reduce the incentive.
It's based on your PAYE income, so the more tax you pay the greater the saving and proportional to earnings.
Purely from an accounting perspective, but wouldn't fitter older people mean less immediate burden on the NHS but more potential long term burden ?
Where as ... dead older people, ideally ASAP, would mean zero burden, immediate access to all that inheritance tax and no need to cough up for pensions ?
Where as ... dead older people, ideally ASAP, would mean zero burden, immediate access to all that inheritance tax and no need to cough up for pensions ?
HappyCamperIan
Member
Ask Sarah;
"Cycling UK also responded to the news, with Sarah McMonagle telling Cycling Weekly: "While capping the scheme may sound like a sensible way for ministers to save money, in reality, it will cost the government a lot more. For every £1 spent on the Cycle to Work scheme, we see over £4 in returns: boosting productivity, reducing sick days, and saving households money."
'This feels like another attack': industry laments new Cycle to Work budget cap
Retailers and cycling bodies express concern at plans to limit value of eligible bikes
www.cyclingweekly.com
Chaser
Member
If we look at it that way, we really need to encourage more people into ending their lives early, either deliberately or through misadventure as it means we will have less burden on the NHS or the pension system.
Ive just bought an Amflow through c2w, and this news pushed me to do it more urgently. I’ve since spent a few hundred quid in other retailers for some new kit, and a few goodies for the bike so ill say it’s a positIive for retailers, regardless if they take half the profit in it for the voucher.
billwarwick
Language Police
Brilliant
. Have you ever considered a career in politics?
I doubt it. But those who do will soon miss it once its gone. The whole cycle industry is pretty fragile at the moment. Removing the C2W scheme will be sure to see further significant falls in bicycle sales and more firms going to the wall.
It is also worth noting higher earners don’t pay full NI tax. Over 50K you only pay 2% NI. So the 40% tax isn’t as severe as some make out. But then its always been the case that the more people earn the more they moan about how poor they are.
Meanwhile inefficient plug-in hybrids are still being flogged via government salary sacrifice electric car incentive schemes. Whilst the C2W scheme is small beer, getting the hybrids off an incentive scheme they should have never been on in the first place might be very worthwhile.
Absolutely, I hear you there RustyMTB, there are billions upon billions of pounds of corporation tax going uncollected in the UK each year. Companies like Amazon, Starbucks, McDonalds, Apple, Cisco and so on. But Reeves doesn’t want to talk about that. Most of these companies are American. And lets just say the US President clicks his fingers and we suddenly increase our ‘defence’ spending when we can least afford to do so. Add in a recent state visit, an attack on our national broadcaster and you might well ask ‘whose is really in charge of the UK?’.
Other problems the UK has, it has de-industrialised, and what industry we have left is often foreign owned. We’ll let anybody anywhere buy any UK business. We’ve largely adopted the US economic model but failed to notice that only Americans get to own American businesses. Foreign investors now own over 2/3rds of UK listed shares – the biggest holder being America.
Labour’s way forward is to plead poverty and encourage further expesnive ‘inward investment’ – increased foreign ownership and influence. But then you don’t get multi -million pound party donations etc by issuing governments gilts and bonds.
So in terms of economics, I reckon some of the UK’s biggest problems are, private investment in public infrastructure and services. Foreign ownership of key industries and services. Further ‘inward investment’ which will add to the pain. In short, the UK is country that hemorrhages cash whilst failing to collect key taxes. The economy is failing, the Labour government either doesn’t know what to do, is scared to do it, or our ministers are simply seduced by power status and money.
So one way or another, without a change of direction, which nobody is offering just now, the burden of this slowly failing economy will be passed onto you and I. Which I fear will further speed the UK’s decline. The average punter pays most of their cash out on their mortgage, food and energy – with what’s left now being squeezed by rising inflation and taxes. Well, we are on a downwards spiral. We cannot afford to tax the little people more – but I think that’s what she is going to do.
Have a nice weekend folks.
A friend wanted to see my then new Mondraker Acee. It was sat next to my BMW R1250R in my garage. I have to say that neither of us could understand how on earth the Mondraker ended up with a retail price of 50% of the BMW. It is mental.
Thank goodness for the C2W scheme! And yes I used to cycle to work.
billwarwick
Language Police
Whilst I both agree and disagree with different parts of your post, this is a forum for emtb’s. Can we sort of leave the politics, otherwise this forum will just become another shouting match with no winners. There are enough of those elsewhere.I doubt it. But those who do will soon miss it once its gone. The whole cycle industry is pretty fragile at the moment. Removing the C2W scheme will be sure to see further significant falls in bicycle sales and more firms going to the wall.
It is also worth noting higher earners don’t pay full NI tax. Over 50K you only pay 2% NI. So the 40% tax isn’t as severe as some make out. But then its always been the case that the more people earn the more they moan about how poor they are.
Meanwhile inefficient plug-in hybrids are still being flogged via government salary sacrifice electric car incentive schemes. Whilst the C2W scheme is small beer, getting the hybrids off an incentive scheme they should have never been on in the first place might be very worthwhile.
Absolutely, I hear you there RustyMTB, there are billions upon billions of pounds of corporation tax going uncollected in the UK each year. Companies like Amazon, Starbucks, McDonalds, Apple, Cisco and so on. But Reeves doesn’t want to talk about that. Most of these companies are American. And lets just say the US President clicks his fingers and we suddenly increase our ‘defence’ spending when we can least afford to do so. Add in a recent state visit, an attack on our national broadcaster and you might well ask ‘whose is really in charge of the UK?’.
Other problems the UK has, it has de-industrialised, and what industry we have left is often foreign owned. We’ll let anybody anywhere buy any UK business. We’ve largely adopted the US economic model but failed to notice that only Americans get to own American businesses. Foreign investors now own over 2/3rds of UK listed shares – the biggest holder being America.
Labour’s way forward is to plead poverty and encourage further expesnive ‘inward investment’ – increased foreign ownership and influence. But then you don’t get multi -million pound party donations etc by issuing governments gilts and bonds.
So in terms of economics, I reckon some of the UK’s biggest problems are, private investment in public infrastructure and services. Foreign ownership of key industries and services. Further ‘inward investment’ which will add to the pain. In short, the UK is country that hemorrhages cash whilst failing to collect key taxes. The economy is failing, the Labour government either doesn’t know what to do, is scared to do it, or our ministers are simply seduced by power status and money.
So one way or another, without a change of direction, which nobody is offering just now, the burden of this slowly failing economy will be passed onto you and I. Which I fear will further speed the UK’s decline. The average punter pays most of their cash out on their mortgage, food and energy – with what’s left now being squeezed by rising inflation and taxes. Well, we are on a downwards spiral. We cannot afford to tax the little people more – but I think that’s what she is going to do.
Have a nice weekend folks.
It is a political discussion. The C2W scheme is political – it is a scheme built around a tax break. Thread started on the 13th November. 3 pages long now, and I’ve just made my first comment.
I’m not into shouting matches.
Anyway, my view is the chancellor won’t get any meaningful cash from tinkering with the C2W scheme. If she does cancel or trim it, I’d take it as a sign of real and serious desperation.
HappyCamperIan
Member
You can't be a gate keeper on an Internet forum. It's the internet...besides, the post is not political as it does not say one team is better than another, it says all the teams are crap, which is a fair observation.
He can't, but I can.
This forum has survived for years without diving into the cesspool that is political threads. Please keep the thread on topic.
HappyCamperIan
Member
Good flex
I think it's good and proper to protect this forum from antagonistic and inappropriate posts, but with all due respect C2W is by nature political, so it's inevitable that it will be touched upon.
All the posts in here have been respectful and, mostly in agreement too. So not even at urinal levels, let alone a cesspit...and crucially nobody is being forced to participate.
I think all this thread does is highlight that fact that the economic benefits C2W brings are not widely publicised enough...I hope I haven't come across as unfriendly or hostile in my reply and the ban/delete stick stays in its holster. Cheers
IKR.Good flex
As long as the discussion remains on topic there'll be no need to wield the ban hammer.
Indeed, but we also don't want people to be forced not to...
HappyCamperIan
Member
Cheers, appreciate the reply and humour...thanks for keeping your tool at bay
I hope nobody feels they can't contribute, I'd imagine most feel the scheme is a benefit to our chosen pass time and the broader economy...but all opinions are valid, even if they are wrong
Eduardoramundo
E*POWAH Master
It looks like the Sal Sac for pensions is pretty much a dead cert @ £2,000.
I can’t see the C2W being any higher, but I guess we will find out on Wednesday.
I can’t see the C2W being any higher, but I guess we will find out on Wednesday.
Eduardoramundo
E*POWAH Master
There is nothing in the OBR budget report on the C2W scheme. The only Sal Sac mentioned is the £2k for pensions.
Happy days
Happy days
HappyCamperIan
Member
Well glad I was right bout C2W...shame about my AVCs, I guess I'll be spending more money on bike bits instead!There is nothing in the OBR budget report on the C2W scheme. The only Sal Sac mentioned is the £2k for pensions.
Happy days
Umm, the only change to pensions I see is the salary sacrifice scheme for pension savings with respect to NI contributions.
AVC’s I thought came under the overall Pension Input Allowance PIA. That, as far as I can see, remains unchanged at £60,000 pa. So your AVC’s, I think, should be OK. I paid my AVC’s as part of my overall PIA.
But, as I thought, she’s not touched the cycle to work scheme
, as any adjustment wouldn’t bring much money, certainly not after the negative impact it would have on the UK cycle industry as a whole is taken into account.I think the big news for most of us is, and we all knew this already, is your tax take is going to increase as a result of fiscal creep. Now I am not getting into politics, or pushing one agenda over another, but there are some interesting considerations here;
The upcoming increase for minimum and living wage earners is already pretty much absorbed by inflation (rise is 4.1%, inlfation in October was 3.6%), which means that overall, taking into account fiscal creep (the 12,500 tax free allowance is not increasing) means lower earners will be slightly worse off. That may have an impact on the consumer economy.
Also, it means that more people will be dragged into paying income tax (or pushed into the upper rate) –in partiuclar those on the minimum wage and pensioners getting by on the state pension alone. I’ll make no comment.
But watch out for this, as a result of personal allowances not increasing and limits for interest on bank accounts, dividends and capital gains already having been slashed, many many many more people are now going to be required to fill in a self-assessment tax return. The number of people who need to do this is just going to explode.
If there is some good news here, well if you have skills in administration and/or accountancy, I think HMRC are going to have to expand their work force. As maybe HMRC are going to have to chase tens or hundred’s of thousands of people who haven’t yet realised they need to do a self-assessment tax return. It is going to be interesting – honestly
Buy hey if you are employed and you fancy a new emtb, get in there. And next years models are due out soon, so look out for those 2025 end of year model bagains too! Happy days. Unless like me you no longer have access to the scheme.
The UK C2W scheme is widely abused and should be replaced by a measure which better serves its original purpose.
The same applies to the widely abused UK Motability scheme.
The same applies to the widely abused UK Motability scheme.
- Status
