I have worked at my company for over 20 years and I deal now exclusively with employee's flexible benefits, i.e. we give employees an amount of money (%) on top of their salary and they can spend it as they wish and I co-ordinate their choice(s).
One of the new benefits that we are offering our employees is that they can buy a bike up to the value of £500 and the company pays the VAT on the bike and it works as a salary sacrifice in that the cost of the bike (excluding VAT) is deducted from your monthly gross pay (i.e. the employee also saves on tax and N.I.).
This is a verified scheme offered by the Inland Revenue.
... well, the company realises that not everyone can buy a bike and use it to ride to work (for example, where I work in London the company does not have facilities to store the bikes) and to that effect the idea is that all employees can buy a bike, whether they ride it to work or not.
... well my son (aged 11) has never been able to ride a bike (is very sporty but has never achieved the balance/co-ordination) but this year when he spent 2 weeks at his dads he learnt to ride a bike (borrowed off a friend).
I told him I would treat him to a bike (not Christmas/birthday present) and now my company offers this scheme.#
Ideally, I should be buying myself a bike to ride to work (whether that be to ride to the office or only to the local train station).
Do you think I am being unreasonable in saving the VAT, my own tax and N.I. in buying a bike that my son can ride.
The reason I am buying him a bike in the 'bike to work' scheme is that he has just started high school and, instead of me driving him every morning (about 5 minutes drive, 25 minutes walk), he will use the bike to get to school so in effect I am doing what the Government offers in that I will not be using my car and it helps my carbon off-setting.
My only concern is how can I explain to my HR department (in which I work) why I would be using a GT Air 2009 (BMX) bike to ride to the station?
Do you think I am cheating the 'system'?
Please or to access all these features
Please
or
to access all these features
AIBU?
To join my company's cycle to work scheme (I also work in HR) to buy a bike for my son
64 replies
Bumblelion · 02/10/2008 20:33
OP posts:
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