Hi

I'm considering C2W but there's a chance I might lose my job in the next few months. If I'm part-way through the scheme and the worst happens, would I be right in thinking that as I'd be renting the bike I'd just give it back rather than having to pay the balance of the purchase price?

Just weighing up the risks!

Thanks

From the cyclescheme FAQ

"Once signed, the Hire Agreement is non-cancellable following a cooling-off period of 7 working days following collection of the goods. This means that if an employee leaves or is made redundant from their employment during the hire period they are obliged to pay the remaining salary sacrifice amount in full from net pay i.e. without any tax exemptions. "

If they did make you redundant I very much doubt they would ask for the money or the bike back (it would be a bloody insult if they did! 😯 ) – but if they did you could ask for it as part of the redundancy package??

You'd still have to pay a 'disposal fee'
Alternatively they'll offer the bike to you for the remaining payments however there will be no tax relief on this amount. You'd also have to pay the final disposal/transfer fee on top of that. Depends on whether the company wants the bike as an asset. They'll maybe just want rid of it. You might get it as part of the package.

Sorry, I'm slow typing on my phone 🙂

Afraid not. As althepipes said – the balance will be taken from your net salary, so any tax advantage is lost.

Thanks for the info!

allthepies has hit the nail on the head. Depends though what sort of company you work for. I'm sure there are some who will try to work out a way to include the bike into the redundancy package. There are some though that won't and will stick to the rules. What good is a push bike to them? And you have to remember that the funding of C2W is done through inland revenue so even the most benevolent employer may not want the hassle or run the risk of defrauding IR. Would your redundancy be a large amount where you could easily absorb the rest of the costs of the hire? If not I would be cautious. If there are redundancies in the offing will the company actually put through C2W purchases? I know it's not a lot of hassle but it would appear that they have other things to think about?

I considered the same thing when I took mine out. I waited for that round of redundancies to take place before I got my bike. If was at risk of redundancy, I wouldn't do it.

I'm relieved I've paid mine off before they start cutting back again.

Sorry to hear you're at risk, time like that when I new bike could help put the smile back on your face!