Cycle to work – what happens if you leave the company?

As per title really. Obviously any outstanding balance plus final settlement would be docked from your pay, but is this still done pre-tax or does leaving the scheme early mean foregoing some of the saving?

They can ask for the bike back as an alternative.

You might be lucky and get away with it, no payment and no giving the bike back, I know of one person this has happend to.

MrGreedy,

I believe the balance is deducted from your net pay not your gross so you receive no tax relief on your final payments.

Regards,
Matt.

From the cyclescheme website…

What happens if I leave my job or I'm made redundant?

The agreement to pay your loan is non-cancellable, so you will be obliged to pay the remaining amount in full, without any tax exemptions. If you opt to take ownership of the bike you may have to pay an increased fair market value.

Thank you folks, 'spose it's fair enough really. We're due to start a scheme shortly but I'm keeping an eye open for other opportunities so not sure how likely I'd be to stay the full 12 months. I presume it's not possible to transfer between schemes if both old and new employer have them?

Depends on your notice period etc. I know our place got stung on the computers scheme, some of the guys on the shop floor on a weeks notice effectively skipped out owing a lot and it really wasn't worth the company persuing it. Trouble is they now are very anti the bike to work scheme (although our HR manager finishes on Friday so things may change…….).

You can get stung for the whole outstanding amount AND not given the chance to buy the bike! (Or given 100% FMV)

It becomes cycle to dole office

This happened to me.

HR just deducted remaining due from final pay. No mention of nominal payment to buy bike.

Might have helped that I was made redundant and was the union leader (so actually on reasonably good terms with HR), but I expect the same would apply to you anyway.

They don't want it back though, do they? What do you think your HR dept are going to do with a bike?

@stumpyjon

What 'computer scheme' ??!! Is there a way to buy new laptop tax-free, pay per month??!! please say yes.

Blue…there was but they axed the scheme 3 or 4 years ago.

As CHB said, it wasn't as good to be honest as you had to buy through specific companies so savings were pants compared to the bike to work scheme.

Got my old PC through that scheme. Saved a packet as it was via BT/HP, but I then blew the saving on a photo printer through the scheme as well. I haven't even finished the photo paper that came with the printer…