VAT Ruling Now Makes Halfords Cycle2work Scheme An Even Better Option
Released on: August 31, 2011, 3:00 pm
Transportation / Logistics
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 email@example.com
Halfords is the UK's largest bike and accessories retailer, with over 460
superstores. Our wide range includes road, MTB, BMX, town and trail and includes
leading bike brands Boardman, Voodoo and Carrera. We build every bike purchased
free of charge and also offer our customers a free six week safety check.
Halfords www.cycle2work.info provides a one stop cycle2work package for employers
and employees. As the scheme's pioneers we are able to supply virtually all bike
brands available in the UK through both our own stores and Independent Bike Shop
For more information contact:
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