Cycle to work scheme... quick question.

[MontyVeda]

if say after 6 months i lose my job with 6 months worth of payments to go on the bike, what happens?

would i have to settle the balance and keep the bike, or give the bike back and get refunded for the payments i've made?

 

[cyberknight]

if say after 6 months i lose my job with 6 months worth of payments to go on the bike, what happens?

would i have to settle the balance and keep the bike, or give the bike back and get refunded for the payments i've made?

You would have to pay the full payments then the final payment to keep the bike, the same goes if its stolen before its payed for.

 

[Custom24]

This ^^

Remembering that the remaining full payments wouldn't give you the tax benefit.

There is a more elaborate description here

https://www.cyclescheme.co.uk/help/faqs/how-does-it-work

There is a link for What happens if I leave employment?

I think all the 3rd party Cycle To Work schemes (like the one above) will have a similar clause for tax rule reasons. I guess if the scheme is run directly by your employer, then they might do something different, but I'd imagine at least their official line would be the same as the above also.

 

[LocalLad]

If it's a redundancy situation, might be able to negotiate for them to take the hit

 

[MontyVeda]

...

Remembering that the remaining full payments wouldn't give you the tax benefit.

...

That's the other thing... since i'm part time and won't gross more than 10K, i won't pay tax and won't get the benefit anyway... it's more like interest free credit.

 

[Custom24]

That's the other thing... since i'm part time and won't gross more than 10K, i won't pay tax and won't get the benefit anyway... it's more like interest free credit.

In that case I would look at other options, such as the bike being available on regular interest free credit. The thing about the cycle scheme is that all the third party scheme companies take a cut. It generally means you won't get a sale price or be able to negotiate on the bike, because this cut is taken from the bike shop.

If the scheme is directly administered by your employer, this doesn't apply.

 

[MontyVeda]

Aye... especially if i pay £83.33p each month for twelve months and have to pay an additional 20% of the bike's sale price to take ownership... a £1000 bike could cost me in the region of £1200.

 

[Supersuperleeds]

if say after 6 months i lose my job with 6 months worth of payments to go on the bike, what happens?

would i have to settle the balance and keep the bike, or give the bike back and get refunded for the payments i've made?

If you were in my scheme at work you would have to pay the balance off out of your final pay and it comes out of your net salary.

We wouldn't insist on the additional payment for you to take ownership of the bike, instead we would let you have the bike after you had left the company so you wouldn't get a benefit in kind.

Our scheme doesn't go through a third party as I set it up and administer it

 

[Supersuperleeds]

Aye... especially if i pay £83.33p each month for twelve months and have to pay an additional 20% of the bike's sale price to take ownership... a £1000 bike could cost me in the region of £1200.

You wouldn't save any tax but you would save a bit of National Insurance and so would the company.

It probably would work out cheaper for the company to waive the additional payment and pay the NI on the benefit in kind than you not joining the scheme, if I were you I would have a chat with whoever runs the payroll to double check.

 

[Sandra6]

Are you sure you qualify for the scheme?
I don't, because I don't pay tax.
In some circumstances you can transfer your payments to a new employer.

 

[MontyVeda]

Are you sure you qualify for the scheme?
I don't, because I don't pay tax.
In some circumstances you can transfer your payments to a new employer.

Neither my manager nor the company's c2w agent has said that i don't qualify and I've made it clear to both that my salary falls below 10k. But since i'll make no tax or insurance saving, the C2W scheme is starting to look like an over complicated credit arrangement, so I'd be just a well of going for personal interest free credit if i can (salary below 10k might put the brakes on that option). Hopefully I'll see something shiny before long and forget all about buying a nice new bike that i don't really need... hopefully.

 

[cyberknight]

Our C2W scheme is back but i have realized i cant get anything better than i already have via the scheme apart from going from triple butted alloy to carbon and sram apex to tiagra the new bike would actually be heavier overall and have lesser wheels etc .
Upshot is i shant be bothering .