Associated British Ports, Avon and Somerset Probation Trust and Spire Healthcare are implementing a new Halfords bikes-for-work product.
The plan, developed with HM Revenue and Customs and a tax adviser, ensures employers comply fully with the transfer-of-ownership regulations at the end of the hire period.
It can be tailored either to extend the hire period from one year to up to five years with a notional or nil transfer value at the end of the period, or as a P11D declaration of the end-of-hire term value as a benefit in kind, which can then be taxed at marginal tax rate.
Avon and Somerset Probation Trust, which has run a bikes-for-work scheme through Halfords since July 2009, is using the P11D option. Its assistant chief officer for human resources, Dean Hambleton-Ayling, said: “We are going with the P11D option so it does not cost staff any more.”
Spire Healthcare, which introduced the scheme to its 7,000 staff in January 2008, is implementing the extension of the hire period. Jim Carson, the company’s head of reward, said: “The [Halfords product] makes it easier for us to administer and makes it a lot clearer what our employees have got to do.”
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