Cycle to Work Sneakiness

[vickster]

Yes, but depending on the agreement, they might be able to demand the rest of the payment rather than the bike.

As mentioned, he'll likely have the remaining amount deducted from final net salary...as described below

What happens if I leave employment?
If you leave employment or are made redundant during the hire period any outstanding Salary Sacrifice repayments will be taken from your final salary, from net rather than gross pay i.e. without any further tax exemptions.

For example, if you are on a 12 month scheme, and have had 4 Salary Sacrifice repayments taken from gross salary prior to leaving employment, the remaining 8 should be taken from your final net salary.

Also similar story here http://blog.bike2workscheme.co.uk/what-happens-if-an-employee-needs-to-leave-a-cycle-to-work-scheme

Or

https://www.cyclesolutions.co.uk/faq

 

[Alan O]

[QUOTE 5218801, member: 45"]At the point that the persons decides to walk away with the bike, he's taking the employer's property.[/QUOTE]
Yes, I know, but that's missing my point - they want the money (and will almost certainly take it), not the bike.

 

[Alan O]

As mentioned, he'll likely have the remaining amount deducted from final net salary...as described below

What happens if I leave employment?
If you leave employment or are made redundant during the hire period any outstanding Salary Sacrifice repayments will be taken from your final salary, from net rather than gross pay i.e. without any further tax exemptions.

For example, if you are on a 12 month scheme, and have had 4 Salary Sacrifice repayments taken from gross salary prior to leaving employment, the remaining 8 should be taken from your final net salary.

Also similar story here http://blog.bike2workscheme.co.uk/what-happens-if-an-employee-needs-to-leave-a-cycle-to-work-scheme

Or

https://www.cyclesolutions.co.uk/faq

Thanks - In the past I've worked for companies that have done salary sacrifice schemes (though not C2W), and that's exactly how they have worked.

 

[vickster]

The OPs "friend" could still donate his old bike to the company as a generous philanthropic gesture

 

[Tin Pot]

Surely it's not the bike itself that's the asset in question, it's the rest of the cash to finish paying for it? In the employer's shoes, I might well not want a used bike handing back, but I'd sure as hell want the money I'd lent to the (potentially) thieving toe-rag.

No the bike is the asset. The purchase of the asset is deducted from their corporation tax.

So, yes, if you* were really upset that your money was going into a bike for an ex-employee rather than HMRC then you are more likely to chase for return of the asset/prosecution etc.

*Which no business owner has ever felt in all of human history

 

[Tin Pot]

Yes most of the forum users aren’t women while we are most of humanity (actually we’re pretty much all of what is rightly humanity)

So, what you’re saying is that - statistically speaking - anything a man says is insignificant?

I can work with that

 

[Time Waster]

At our place they make deductions from last paycheck for many things. I can pretty much guarantee the bike would stay with the company or the deduction is made according to C2W rules.

Money is what the bike represents to the company. If you try to trick them with a cheap BSO and keep the C2W bike they'll keep the BSO (sell it to someone at work) then charge for the money left on the bike out of the last pay packet.

BTW one guy left with virtually all his last paycheck deducted for various reasons.

 

[Gravity Aided]

It seems to me, coming from a company and a nation without C2W, that the only way something like this would work would be if everyone involved would act civilized and play by the rules. Which is probably why we don't have such a thing over here. Just saying.

 

[Julia9054]

[QUOTE 5220591, member: 45"]Then HMRC changed things to increase the final payment[/QUOTE]
My scheme works by simply splitting the cost of the bike over 12 months. No final payment

 

[bpsmith]

My scheme works by simply splitting the cost of the bike over 12 months. No final payment

There’s always a final payment. They can’t lease you the bike, to allow the tax and NI saving, then just gift it to you. They have to charge you something as it still has a sizeable value at 12 months old.

 

[Julia9054]

There’s always a final payment. They can’t lease you the bike, to allow the tax and NI saving, then just gift it to you. They have to charge you something as it still has a sizeable value at 12 months old.

Done it 4 times. No final payment unless you count month 12th's payment - the same amount as month's 1 - 11

 

[bpsmith]

Done it 4 times. No final payment unless you count month 12th's payment - the same amount as month's 1 - 11

No residual value fee or payment of the tax on the residual value if they gift you the bike? The latter is paid monthly for the 12 months following. They just reduce you tax allowance.

 

[Supersuperleeds]

Done it 4 times. No final payment unless you count month 12th's payment - the same amount as month's 1 - 11

In that case if the scheme is following the rules you should have had a P11d charge.

 

[bpsmith]

That’s what I was trying to explain.