Cycle to work is the UK’s fastest growing staff benefit, helping employees to get fitter and healthier by encouraging them to cycle with great tax free savings off bikes and safety equipment, whilst enabling employers to save on National Insurance Contributions and reduce their carbon footprint.
Today’s announcement from HMRC about treatment of VAT for salary sacrifice schemes has removed the final element of uncertainty about exactly how schemes should operate in future.
In response to a recent European Court of Justice judgement, HMRC has confirmed that provision of a benefit via salary sacrifice to employees constitutes a supply of services for consideration and is therefore subject to VAT. This ruling means that from 1st January 2012, employers must charge employees VAT on supply of bikes made available to them under such cycle to work schemes.
At first glance, this suggests that savings available to employees will be materially reduced – but this need not be the case with Halfords cycle2work scheme.
Charles Ashwell, Halfords Cycle2work Corporate Sales Manager said: “The new ruling removes the final element of uncertainty about exactly how cycle schemes should operate going forward, and in so doing, strengthens it further.
“Halfords is the leading authority on the scheme, and we continue to invest in its development and future. We are uniquely placed to maximise savings by working with clients to design schemes which provide superior savings for employees and employers than those available from other scheme providers.”
Halfords cycle2work offers employees the UK’s best C2W savings, and employers the continued peace of mind of offering the UK’s most compliant scheme.
Employers wishing to find out how they can take advantage of the UK’s best Cycle To Work savings should contact Charles on 07720 699950 or firstname.lastname@example.org.