Video: "Biking is Better"
One of my major concerns was bike theft which I have now resolved, with an insurance quote from CycleGuard which is a fraction of that of car insurance premiums.
Would-be cyclists can benefit from a bike to work scheme offering tax savings on bikes purchased by employees through their work for employees via PAYE, who then pay for the bike through monthly contributions for twelve months. The employee can then buy the bike for a nominal retail value. A £400 bike purchased through the scheme could result in savings of upto 33% off the retail value. Whilst I think this scheme is a great way to encourage people on to their bikes, the red tape and complicated system I feel would deter some people even asking their company about implementing the scheme (including myself). More appropriate I feel would be cycles rated Vat free and tax deductible with certain limitations. However the response to this suggestion from the government is outlined below.
"VAT is a broad-based tax on consumer expenditure generally and reliefs from it have always been strictly limited. When the UK joined the European Community in 1973, it meant signing up to the general agreements which covered the application of VAT throughout the EC. Under these and subsequent agreements, signed by successive governments, we are allowed to keep our existing VAT zero rates but not to introduce new ones. This means that we cannot remove VAT from bicycles and other human powered vehicles or their parts and spares.
The Government is taking practical steps to increase levels of cycling, as a means of contributing to many of our key priorities including improving the health of the nation, improving the environment and helping to reduce urban congestion. In 2005, the Department for Transport launched Cycling England, an independent expert body to co-ordinate cycling across the country with a budget of £5m a year for a three-year period to allocate to cycling programmes. This was increased to £10m a year in June 2006 with the additional funding being targeted on funding safe links to school and additional cycle training in schools. Cycling England has a free expert advisory service to support local authorities to help them get the best value out of their expenditure (around £60m in 2006/07) on cycling. £17m (with match funding) is also being invested in six Cycling Demonstration Towns over 3 years, to showcase best practice, and test whether by investing at levels seen in successful European cycling cities we can start to see similar levels of cycling in England."
No comments:
Post a Comment