There has been a VAT update following the Astra Zeneca court case, where the European Court of Justice made a ruling stating that the provision of retail vouchers amounted to a supply of services effected for consideration of VAT.
On the 28th July 2011, HMRC published guidance stating that VAT needs to be accounted for on Salary Sacrifice payments for Cycle to Work from the 1st January 2012; please visit www.cyclescheme.co.uk/employers/employer-updates/hmrc-vat-update-summary for a summary of HMRC’s guidance relevant to the Cycle to Work Scheme.
Despite this change the Cycle to Work Scheme remains a valid and worthwhile benefit for both employers and scheme participants.
As the UK’s No.1 provider of Cycle to Work schemes and with unrivalled expertise we are uniquely placed to help employers and their employees continue to make the most of an excellent benefit.
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 firstname.lastname@example.org 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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