To help answer some common GoSave questions and for details on how to get the process started, find the following FAQ's.
Question: Who is eligible?
Answer: Employers of all sizes across the public, private and voluntary sectors can implement GoSave, provided their employees have a permanent contract. The self employed are not eligible for GoSave.
Question: How much can I save?
Answer: Depending on the employee's salary and the value of the loan, you could save in the region of £40-£100 in NICs per annum per employee.
Question: What area of law covers GoSave?
Answer: GoSave falls under employment law not tax law, as the employee is giving up the right to receive part of their salary.
Question: How does HMRC become involved?
Answer: HMRC has to be satisfied that the scheme is "effective" before giving its approval. For further details please consult the HMRC website.
Question: Who can help me set up GoSave?
Answer: The GoSmart team can steer you through the process, alternatively a list of third party suppliers are provided.
Question: How does GoSave work?
Answer: Your employer needs to set up the scheme enabling you to purchase a cycle (including accessories) and/or a bus season ticket for your commute to work. You pay back the loan on the cost of the cycle or bus ticket from gross rather than net pay typically over a period of 12 months.
Question: What happens at the end of the GoSave period?
Answer: When your bus ticket expires, should your employer still operate the scheme you can purchase another ticket and continue to save. With the cycle, your employer owns the cycle and accessories. He/She may ask you to purchase the cycle for a 'fair market value', alternatively you can re-apply and purchase another cycle through the scheme.
Question: Can I get a particular brand of cycle?
Answer: Depending on the supplier your employer has partnered with, you may pick any cycle and accessories from the extensive range provided by participating cycle shop(s) between £100 and £1000 in retail value.
For more details GoSave leaflets for Employers and Employees can be downloaded here.