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  • Cyclescheme hassles.
  • jam-bo
    Full Member

    Mrs left her company in august, partway through a cyclecheme agreement on a bike. Final payment totalling the outstanding payments was taken out of final paycheck. Nothing more was said by employer.

    Cyclescheme are now hassling for transfer of ownership fees of varying amounts.

    Can they be told to poke it?

    charlierevell
    Free Member

    Everyone has to pay a transfer of ownership charge I believe mate. All shes done is paid up till the end of her scheme in one go really.
    But It now cant be bolted onto her P11D (shes left…) So id question what they could actually do. However the bike could well be owned by cyclescheme therefore they may have an interest in it!

    jam-bo
    Full Member

    Cheers mate. Ignore the fb message I just sent you.

    Surely its a dispute between the employer and cyclescheme?

    charlierevell
    Free Member

    Nope, I think once handed over to cyclescheme (at the end of the scheme, or when you leave) Its their property and up to them to chase. The contract moves to you and CS, company hands it all over.

    jam-bo
    Full Member

    Sounds shite. Payment isn’t massive for the option that they retain ‘ownership’ for another couple of years. Just feels like they are trying to milk money out of us.

    charlierevell
    Free Member

    They are!

    Onzadog
    Free Member

    Did she pay the sum of the remaining months hire or did she pay the rest of the retail value of the bike? Just wondering as if it’s the latter, she didn’t get the discounts or savings and as I understand it, has bought the bike.

    If she’s still managed to benefit from the savings and discounts, it’s been a bit naughty and against the rules of the scheme. I’d cough up and be grateful. (unless they’re using the new HMRC guidelines and coming up with a silly number for the final valuation but that’s a whole other thread).

    Coleman
    Free Member

    Extract from HMRC document;

    6.3 Withdrawing from a Cycle to Work Arrangement
    The consequences for withdrawing from the Cycle to Work scheme will depend on the terms of the agreement for the loan of the equipment. This is a matter for the employer and employee to agree, particularly where the employee has agreed to a salary sacrifice in exchange for the loan of the cycle and or cyclists’ safety equipment.
    The employer should clearly communicate the terms of the agreement to employees prior to their signing a Cycle to Work agreement. Particularly if, should they leave the employment for any reason during the period in which they are sacrificing their salary for the loan of cycle and cyclists’ safety equipment, the employer may require the employee to pay compensation. This compensation may be to the extent that the employer’s costs have not been offset by the non-completion of the term of the salary sacrifice arrangements.
    A deduction from salary or similar charge to staff in compensation for non-completion of salary sacrifice arrangements for the loan of cycles and cyclists’ safety equipment is outside the scope of VAT. It is not consideration for VAT purposes and no output tax is due from the employer and the employee is also not required to pay VAT (see section 7).

    jam-bo
    Full Member

    Not trying to ‘get away with it’. Assumed everything was settled 9 months ago and a bit surprised to get these demands out of the blue.

    Had no communication about the matter from the employer either.

    Shandy
    Free Member

    I would just ignore them and wait for them to go away. They are acting totally outside the spirit of the scheme in an attempt to bully a few quid out of you.

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