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Sorry if this has been done before, I have not been on the forum in a while.
About 18 months ago I took up my then employers bike to work scheme, got a voucher for 1000 pounds which I used towards buying a 1200 pounds bike. Deductions were taken for a few months until they decided to end my employment (long story). They then deducted what monies were outstanding on the bike.
This month (nearly a year after sacking me!) they write to me saying I am now owe them over 200 pounds to cover the residual value of the bike or I send the bike back!!
Turns out the residual value guidance has changed from 7% to 20% from HMRC so my long past ex employer is now after me for the money or the bike FFS.
Any sound advice appreciated, I have told them already that my obligations with them have since been settled but what are my contractual and legal obligations if they decide to get @rsey about it?
Cheers
S
Interesting one, but I'd say it was there problem. Worse case is that they have to pay the tax on the residual value. Nothing more to do with you, tell them to shove it.
There should have been something in your redundancy paperwork?
And this is why we refused to bend the rules and allow top ups on c2w ....
[url= http://www2.dft.gov.uk/pgr/sustainable/cycling/cycletoworkguidance/ ][/url]
This link will give you more information. Crucially, did you pay a final payment for the bike to transfer ownership, and do you have documentation as such? If not, and they merely deducted all payments of the scheme then according to that link they do actually still own the bike. Crucially the transfer of ownership is said to be a separate agreement to the C2W loan agreement.
Having said all that it's a bit cheeky for them to claim ownership was not transferred, since you've had possession of the bike for all that time and did indeed pay all the installments required. I'd disagree with that request too! Good luck 🙂
Did you purchase through cyclesceme, or other third party company?
Did you purchase through cyclesceme, or other third party company?
It was some provider company that provided the voucher which I then took to Evans where I negotiated the price of the bike and picked it up direct from their shop.
Well I think you need to find out what provider you signed with and find out what their guidelines are, cyclescheme, for example take ownership then extend the rental period for up to three years which then reduces the final payment.
But then again your ex employer could be a complete shower of c*nts