What happens after you leave on the cycle to work scheme?

c2w_chris

Member
So, I'm leaving my current employer on the 25th of this month, going to work at the Department for Work and Pensions on the 30th July. In my exit interview with my current employer they where saying that they'll take the outstanding balance (roughly £300-400) for the cycle to work bike from my final paycheck, which doesn't really seem fair.

Is there any way I can take the finance over myself? So rather than EE (current employer) paying them from my wages, I just pay them every month? Akin to a Finance package for a car or similar, or could I transfer it to my next employer?

Unsure of my next steps, however I really don't want to be ~£400 down on my final paycheck.

Thanks.
 

I like Skol

Hold my beer and watch this....
Did you not read the T&Cs when you signed your agreement? I think the final payment solution in the case of employment ending is fairly standard and from memory is stated in the T&Cs.
 

vickster

Legendary Member
Did you not read the T&Cs when you signed your agreement? I think the final payment solution in the case of employment ending is fairly standard and from memory is stated in the T&Cs.
This is the case for pretty much every scheme. And iirc out of net salary not gross

If you don’t have the money, borrow short term from your bank via an agreed overdraft to cover the shortfall from EE and pay the bank back?

You may find you have extra in your pay when final amount paid (presumably end August) from untaken holiday or whatever
 
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kingrollo

Veteran
So, I'm leaving my current employer on the 25th of this month, going to work at the Department for Work and Pensions on the 30th July. In my exit interview with my current employer they where saying that they'll take the outstanding balance (roughly £300-400) for the cycle to work bike from my final paycheck, which doesn't really seem fair.

Is there any way I can take the finance over myself? So rather than EE (current employer) paying them from my wages, I just pay them every month? Akin to a Finance package for a car or similar, or could I transfer it to my next employer?

Unsure of my next steps, however I really don't want to be ~£400 down on my final paycheck.

Thanks.
Thats seems correct. if you leave your employer the whole balance becomes due. You cant make the repayments yourself as technically the employer owns the bike. The scheme has strict laws so you avoid paying tax, so the rules are pretty much set in stone.
 

Sixmile

Über Member
Location
N Ireland
A few years ago there was a infamous leaving speech by a woman who'd bought a laptop on one of these workplace tax saving schemes. It turned out that she was leaving mid contract so Salaries took the remaining money from her last paycheck which amounted to almost her full wages for that month. She was fuming and let everyone know but in all honesty it was quite entertaining seeing her sour grapes. The detail is always in the small print. I specifically didn't buy a C2W bike because I fully read the T's and C's beforehand and didn't like what I seen.
 

Threevok

(if specified)
Location
South Wales
Going from EE to DWP ?

You are well qualified - dealing with things that never work
 

Tom...

Senior Member
"The Cycle2work agreement is a fixed term agreement. However if you leave employment you will no longer be able to benefit from the tax exemption under the Cycle2work Agreement.

Therefore if your employment ceases for any reason during the hire period you will be required to pay a termination fee to your Employer. The termination fee will not exceed a value equal to the outstanding salary reductions. The termination fee will be collected by your Employer from any remaining net salary payments. Should this not be possible for any reason, or the outstanding liabilities exceed any remaining net salary repayments, your Employer will require settlement of any outstanding liabilities within 14 days of your employment ceasing"
 

I like Skol

Hold my beer and watch this....
Hey guys, my names Chris, did a lot of cycling back in the day in my teens, however I've been interested in the cycle to work scheme with my employer and think that this is the best way I'm going to get back into the hobby that I fell in love with all those years ago.
Wow, you bought your C2W bike in the last 3 months and are ending the agreement already! You will end up paying most of the full RRP price for your bike so have made almost no savings and had to find the lump sum in one hit.

You would have been better off buying an equivalent previous seasons bike at a big discount and then financing it with interest free credit if possible. In fact I always suggest that very same idea to many people that ask questions about C2W schemes as the self purchase method gives you much more flexibility over bikes and employment changes as well as often matching or beating the savings to be had using C2W.

C2W is not the panacea that many consider it to be and you are now discovering this at your cost.
 
OP
c2w_chris

c2w_chris

Member
Wow, you bought your C2W bike in the last 3 months and are ending the agreement already! You will end up paying most of the full RRP price for your bike so have made almost no savings and had to find the lump sum in one hit.

You would have been better off buying an equivalent previous seasons bike at a big discount and then financing it with interest free credit if possible. In fact I always suggest that very same idea to many people that ask questions about C2W schemes as the self purchase method gives you much more flexibility over bikes and employment changes as well as often matching or beating the savings to be had using C2W.

C2W is not the panacea that many consider it to be and you are now discovering this at your cost.
your original comment was very helpful, of course I have read the terms and conditions of my contract with my employer, however as someone has stated you can transfer it to your new employer, which, last time I read my contract, wasn't written in there.

Thanks for all the helpful comments.
 
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Tim Hall

Guest
Location
Crawley
your original comment was very helpful, of course I have read the terms and conditions of my contract with my employer, however as someone has stated you can transfer it to your new employer, which, last time I read my contract, wasn't written in there.
.
I couldn't see where anyone said you can transfer the scheme to your new employer. I can, however, see where they say you can start another scheme with your new employer.
 
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