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

[vickster]

I went with the same scheme but I didn't use the same shop. I did get the same end of season discount as everyone else both years I have done it but there was also the mysterious 10% surcharge for using the voucher. I have yet to be asked for a final payment for either bike and the first bike agreement was completed 7 months ago.

Surcharge seems fairly standard for all but the biggest chains esp on reduced bikes (indeed some places only offer RRP or increase the cost of the sale price). The shop gets charged by the scheme administrators which they recoup from the customer who’s benefiting from the scheme

 

[Slick]

Surcharge seems fairly standard for all but the biggest chains esp on reduced bikes (indeed some places only offer RRP or increase the cost of the sale price). The shop gets charged by the scheme administrators which they recoup from the customer who’s benefiting from the scheme

Yeah, they did tell me that and you can usually haggle that part down a bit.

 

[Drago]

Surcharge = money for nothing.

When stuff like that crops up on a quote I ask, "so what do I get in exchange for this payment"? If the answer isn't something substantive and there isn't a sudden outbreak of common sense, then I walk.

 

[Drago]

Blimey Reg, how exactly do you pronounce your companies name?

 

[Slick]

I've just had an email from Evans to say that my C2W scheme is coming to an end. These are the options they outline:



I'm going to take option two. OK, it reduces the amount I have actually saved but I'll still have saved 17% overall.

Obviously everyone is different, but why not option 1?

 

[Slick]

I'd prefer it to be mine to do what I wish with...

60 months does seem quite steep.

 

[JtB]

If the OP is paying the outstanding balance from his gross salary and there’s no final purchase fee to pay then that still seems a good deal to me.

 

[I like Skol]

"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"

If the OP is paying the outstanding balance from his gross salary and there’s no final purchase fee to pay then that still seems a good deal to me.

Pretty sure the final payment is from net salary, as suggested above. This seems quite fair to me. You benefit from the tax advantages under the agreement because (I know this is often not the case!) you are meant to cycle to work on the bike supplied under the agreement. If you end the agreement early and leave the employer that was the subject of the agreement then you can no longer receive the tax benefits, therefore payments transfer to the same basis as a high street purchase, i.e from net salary. All seems reasonable to me, even if I too wouldn't like to be in that position.

 

[confusedcyclist]

You may need to change your user name.

How do you know his real name isn't c2w Chris?