C2W scheme and resignation… what happens?

I am leaving my current employer and (maybe foolishly) started with a C2W loan etc. in January of this year. By the time I have run my notice period there with be 4 payments left. The company use cyclescheme.co.uk

According to their website if you leave employment or are made redundant during the hire period any outstanding Salary Sacrifice repayments will be taken from your final salary, from net rather than gross pay i.e. without any further tax exemptions. If applicable, you may then be offered ownership of the equipment in the normal way

Which is all fine except the last line… and the word MAY

Is there a chance that (as I’m not likely to be the most popular person following my resignation) the company could demand to keep the bike at the end of the year (and there is sweet FA I can do about it) – or is it more likely that most employers just ask for the final payment and be done with it?

Not that I am going to die in a ditch about it… but I would quite like to hang on to my commuting wheels 🙂

The company will usually have passed it all on the C2W provider and won’t be interested. The ‘may’ applies to all C2W purchases, even if you stay employed – they can’t promise to sell it to you, or you’d have to pay tax on the payments.

Just keep the bike, dont mention it. They may ask for the 4 payments, which is fine. Or they may forget it.

Any accountant will not really want the hassle of a secondhand bike as an asset on their balance sheet. If they actually show it on their balance sheet they are idiots in the first place.

Ours dont show up in the accounts, its not worth the hassle for such small values.

If you want to be an ass, when they ask for the payment you can also ask they knock off the cost of the items you replaced due to wear and tear 🙂

They could take the four payments + the 25% rrp residual value….

If you have a £1000 bike it’ll be 4× £48ish and £250….

So approx £442. + therell be no tax exemptions on the final 4 payments so potentially more.

Personally I’d think you’ll be better giving the bike back – on a 1k bike c2w is only worth it if you stick with your employer for 6 years so the residual value is 0. Otherwise your better off with 0% finance on a one year old model.

Thanks Monkeyboy… I have a feeling they’ll be an arse, so it may as you say be better to hand it back and buy second-hand… Just have to strip all the upgrades off 😉

We’ll see how it goes tomorrow when hr find out!!

This happened to me. Delayed getting a c2w bike at the start of the 2nd year of a 2 year contract, left with 5 payments left. Employer billed me the balance. No tax saving on it. Made the whole thing pretty much pointless.

Personally I’d think you’ll be better giving the bike back – on a 1k bike c2w is only worth it if you stick with your employer for 6 years so the residual value is 0. Otherwise your better off with 0% finance on a one year old model.

Do you have to stay with your employer for the full 6 years though? For mine the bike is owned by Evans who lease it to my employer who lease it to me. After a year I enter into an extended hire direct with Evans (or that’s how I understand it to work). The employer falls out of the picture.

Just coming up to the end of my contract and currently working my notice so I hope I’ve got it right! C2W scheme ends at the end of this month and I leave in July…

You can’t, because it’s your responsibility to maintain the bike.

Hgjhg5 – I used to have a c2w scheme bike with evans 4ish yrs ago – it’s the same as any other. If your employer plays by the rules you’ll pay the residual value in your final pay check (if you dont hand back the bike to your employer).

Hmrc got tougher on employer’s who were putting the residual value at £1 about 5 years ago as some people were takin advantage of the scheme and selling the bike as soon as they got it (although technically it’s not there’s to sell).

I left part way through, hr/payroll dealt with the money part not my boss. Unless your screwing them over I’d not worry. Anything other than making you pay and you getting the bike would result in more work for them.