Cycle to Work changes?

[User]

 

[tobykenobi]

I bought a bike through my employer and they used Evans Cycles. There was similar end of period rule but I think it was 2 years. Anyway, I left the employer about halfway through and had to pay the balance. At the end of the period I got a few emails from Evans about what to do with the bike. I ignored them all and nothing happened! (That was over two years ago.)

 

[KneesUp]

[QUOTE 4919585, member: 45"]Our employer uses Halfords. After September this year the end-of-term rules are changing. Rather than paying the benefit in kind value then you either donate the bike to Halfords' bike charity or continue to hire it from Halfords, for no charge, for a period of four years until it is accepted that the bike's benefit in kind value is negligible.

Do others know about this? Does it stop you taking another bike on? Does it stop you selling your first bike on? I'm finding it a bit confusing and can't find any more detail other than on the intranet.[/QUOTE]
If you are hiring it from Halfords (even for no fee) it implies that the bike belongs to Halfords, so I'd imagine that means you can't sell it.

 

[classic33]

If you are hiring it from Halfords (even for no fee) it implies that the bike belongs to Halfords, so I'd imagine that means you can't sell it.

Always thought the employer owned the bike and you were hiring it from them, under the scheme

 

[Milkfloat]

I am with Cycle Scheme. It is pretty similar. I chose the period to make the initial payments (I went for as short as possible) and then at the end of the agreement I had to make a further payment to hire the bike for 2 more years from Cycle Scheme, where technically it does not belong to me. However,cycle Scheme has had all the money they want out of me and we have not had further communication despite this period being over.

As soon as my monthly payments were over (6 months), I was free to start another scheme - which I did.

 

[classic33]

Under the cycle to work scheme, your organisation buys the commuting package at full retail price and hires this to your employee over a fixed period of time. During this time, this balance is recovered through a reduction in the employee’s gross salary(meaning they make Tax and National Insurance savings – and you make National Insurance Contribution savings too!). At the end of the hire period, Cyclescheme steps in and lets employees know what their ownership options are.

From https://www.cyclescheme.co.uk/emplo...employers/about-the-scheme/how-to-get-started

Can't see why you'd be hiring from Halfords, if the above is correct.

 

[midlife]

[QUOTE 4919680, member: 45"]According to our blurb, ownership is transferred from the employer to Halfords at the end of the initial hire period.[/QUOTE]

I never knew that. I thought the contract was between you and your employer and that the employer had legal title.

I just thought Halfords provided the bike and trousered the cash!

 

[midlife]

[QUOTE 4919714, member: 45"]I've just found this.....

http://www.enwl.co.uk/docs/default-source/about-us/halfords-end-of-hire-solutions.pdf?sfvrsn=0[/QUOTE]

Ah! I only knew of the P11D solution, didn't know it was so complicated!

 

[straas]

I've got an email from cyclescheme asking me to choose an option for my end of hire period. What are the implications if I ignore the email?

 

[Yellow Saddle]

I've got an email from cyclescheme asking me to choose an option for my end of hire period. What are the implications if I ignore the email?

Why would you consider reneging on an agreement you entered into in good faith from both parties?
How would you feel if the other party ignored your legitimate emails to them?

 

[Milkfloat]

I've got an email from cyclescheme asking me to choose an option for my end of hire period. What are the implications if I ignore the email?

I assume they escalate and eventually get the bailiffs in. For just a few quid, why would you bother not paying up?

 

[Soltydog]

[QUOTE 4919714, member: 45"]I've just found this.....

http://www.enwl.co.uk/docs/default-source/about-us/halfords-end-of-hire-solutions.pdf?sfvrsn=0[/QUOTE]
My C2W (through Halfords) has just finished & wish I'd had this option, would have saved me a few quid. Just had to pay £85 to buy my bike, more than anyone else at work, so I'm guessing they went on the full valuation of the bike, even though all paperwork said £1000

 

[KnackeredBike]

Ask the accountants.

"We've got this great thing where we can save NI employer contributions if people can buy tax-free washing machines wa-hey!"
"Bugger they've stopped everything except childcare vouchers and bicycles - and no-one is buying bicycles because they have to pay to buy it at the end of the term."
"Let's rent the bicycle to them for free for a couple of years until it is valueless and then they can buy the bike for free... wa-hey!"

 

[JtB]

When I bought my bike though my company's C2W scheme there was no final payment and I did wonder whether my company still technically owned the bike. But who cared? - I ended up with a bike at the end of it and that was all that mattered. I also bought another bike soon afterwards through the same scheme and nobody has ever checked to see that I still have the bikes (which I do).

 

[fossyant]

That is how the scheme has worked for a fair while. You don't own it after 12 months, but have a free hire for a number of years after. It's to avoid the BIK.

I got my fixed on the original scheme about 9 years ago - but it soon changed to the extended hire - Inland Revenue catching on.