Forums > Social Discussion > Government "ride to work scheme"
Login/Join to ParticipateBRONZE Member
Macaque of all trades
8,738 posts
Location: wombling free..., United Kingdom
Macaque of all trades
8,738 posts
Location: wombling free..., United Kingdom
Posted:
I have just recieved an application pack at work which is part of the Government initiative to get people to ride to work to cut greenhouse emissions.
all good,
The plan revolves around you getting a bike through your work scheme for a fraction of the cost.
all good,
Payment comes from gross salary not net salary so you don't pay tax on payments, again all good, until I looked a bit closer.
If you earn more money you get to pay LESS for a bike. (I assume because you pay more tax)
Example given: cost of Bike £100
What you pay
Basic rate taxpayer (20% tax - 11% NI) = £59
Higher rate TAx (40% tax - 1% NI) = £50
if you are on VERY low money you can't participate if the monthly payments from your gross salary put you under the minimum wage.
Minimum cost of Bike must be £250 (
@ example)
small print does also state that participation in scheme "could result in reduced pension or none at all" - if you have not made satisfactory NI contributions unlikely but a little scary.
Do you think the Government has got this scheme right? trying to get the rich out of their cars and on to bikes, or is it just a way for people with more than enough money for a bike to save a little bit more, whilst those on low incomes have no option but to carry on they way they have? I applaud the idea but maybe not the application...
EDITED_BY: Mynci (1223299511)
I have just recieved an application pack at work which is part of the Government initiative to get people to ride to work to cut greenhouse emissions.
all good,
The plan revolves around you getting a bike through your work scheme for a fraction of the cost.
all good,
Payment comes from gross salary not net salary so you don't pay tax on payments, again all good, until I looked a bit closer.
If you earn more money you get to pay LESS for a bike. (I assume because you pay more tax)
Example given: cost of Bike £100
What you pay
Basic rate taxpayer (20% tax - 11% NI) = £59
Higher rate TAx (40% tax - 1% NI) = £50
if you are on VERY low money you can't participate if the monthly payments from your gross salary put you under the minimum wage.
Minimum cost of Bike must be £250 (
@ example)small print does also state that participation in scheme "could result in reduced pension or none at all" - if you have not made satisfactory NI contributions unlikely but a little scary.
Do you think the Government has got this scheme right? trying to get the rich out of their cars and on to bikes, or is it just a way for people with more than enough money for a bike to save a little bit more, whilst those on low incomes have no option but to carry on they way they have? I applaud the idea but maybe not the application...
EDITED_BY: Mynci (1223299511)
A couple of balls short of a full cascade... or maybe a few cards short of a deck... we'll see how this all fans out.
BRONZE Member
old hand
1,107 posts
Location: In a test pit, Mackay, Australia
old hand
1,107 posts
Location: In a test pit, Mackay, Australia
Posted:
This happens in pretty much all stuff that says it's "tax deductable'; the more tax you pay, the more you get back.
Having a quick trawl through the memory, a few things that are deductable here include novated lease on cars, charitable contributions, interest on mortages for investment properties and loans for stockmarket investments. The more you earn, potentially the more you can recover.
I can't see why there's simply not a subsidy for something like this, unless the Government are simply trying to look like they're doing something while not actually outlaying much.
Id there still an NI scheme? I thought they were abolishing the state pension.
This happens in pretty much all stuff that says it's "tax deductable'; the more tax you pay, the more you get back.
Having a quick trawl through the memory, a few things that are deductable here include novated lease on cars, charitable contributions, interest on mortages for investment properties and loans for stockmarket investments. The more you earn, potentially the more you can recover.
I can't see why there's simply not a subsidy for something like this, unless the Government are simply trying to look like they're doing something while not actually outlaying much.
Id there still an NI scheme? I thought they were abolishing the state pension.
There is a slight possibility that I am not actually right all of the time.
BRONZE Member
Macaque of all trades
8,738 posts
Location: wombling free..., United Kingdom
Macaque of all trades
8,738 posts
Location: wombling free..., United Kingdom
Posted:
Yes still a NI scheme igher tax bracket pays 1% NI whereas lower pays 11%
thing that's frustrating is they indicate you can get it cheaper through this method but you canbuy a bike chear than that anyway, adn at no loss to pension schemes..grrr
Yes still a NI scheme igher tax bracket pays 1% NI whereas lower pays 11%
thing that's frustrating is they indicate you can get it cheaper through this method but you canbuy a bike chear than that anyway, adn at no loss to pension schemes..grrr
A couple of balls short of a full cascade... or maybe a few cards short of a deck... we'll see how this all fans out.
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