Good news! Since our last HMRC VAT update on our website and following representations by Cyclescheme and our Tax consultants Grant Thornton, we now have confirmation from HMRC that for hire agreements entered into on or before 27th July 2011, employers are not required to account for VAT on the salary sacrifice payments that are made after 1st January 2012.
HMRC has published this announcement (in the Revenue & Customs Brief 36/11) at the following link.
This is a positive move forward from the original HMRC advice whereby ALL salary sacrifice payments made on or after the 1st January 2012 would have required employers to account for the VAT.
This reinforces our commitment to engage with and influence Government policy makers to ensure the best solutions for our customers and we are confident that Cyclescheme continues to represent the best proposition for ALL stakeholders i.e. Participants, Employers and our Independent Bicycle Dealer network (IBD).
Please click here to view a list of VAT Update Frequently Asked Questions for employee and employer reference. We will be adding to this list of questions as and when we receive them, so if you have a question that is not covered in the list please email Cyclescheme on email@example.com using the subject line ‘VAT Update’; we will contact you directly to provide an answer and add it to the list of FAQs.
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