How do I deal with cycle to work schemes?

Summary

IF you offer a cycle to work scheme you can process the employee deductions through Platinum Payroll.

More Information

Create an attachment record for the scheme following the steps in this article.

Please consult your documentation for the scheme you are offering. Seek advice from your accountant or HMRC if you are unsure of the effect on Tax, National Insurance, Pensions and any other additions/deductions to pay. When creating the adjustment record you must ensure you specify the correct settings.

Once you have created the scheme you need to record the details for the attachment.

• Follow the steps in this article.
• The "Agency" will be the agency code you created in the adjustment/attachment settings.
• The "Start" and "End" date will be the period of the scheme.
• If you have a suitable "Reference" you may record it here.
• The "Attachment" will be an 'Amount'.
• Enter the "Amount" to be deducted each period.
• Enter the "Total" to be repaid over the scheme period.
• A cycle to work scheme is not usually under a protected earnings status although may need to ensure the employees earnings do not fall below a specific limit. Seek advice from your accountant or HMRC if you are unsure on the status of the attachment.

Once the attachment is in place the deductions will be made each period until the total amount is repaid. Please check the employee pay carefully to ensure the correct statutory deductions are being made.

You should also make sure you are aware of your end of year reporting responsibilities for employee benefits.

See also

• How do I Set Up Payroll Adjustments?
• How do I Assign Payroll Attachments to an Employee?
• How do I run a payroll period?

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Keywords AND Misspellings

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