Cycle to work scheme

[Bromptonaut]

Our C2W is run by Cyclescheme. The bike is owned by the employer during the first twelve months while the salary sacrifice is in force. It thne transfers to cycleschem who take an option to purchase fee equal to the year 4 value in the HMRC table. During year 4 the bike is transferred to the employee.

It's quite clear (Section 13 of the DfT implementation guidance) that the employer cannot pay 20p/mile approved mileage allowance in relation to a bike they own and lease to the employee.

Does this still apply when the bike has been transferred to Cyclescheme after the payments are complete?

 

[tjw_78]

Well, I've spoken to my employer and been completely honest about the shortness of my commute, and they don't seem to be at all worried.

So, next stop the shop... Got to work out which ones I can go to now!

 

[2Loose]

The insurance responsibility should be clearly laid out in your policy documents.

There might be nothing to transfer but you have lost a company asset and your employers could argue that failure to insure company property was gross misconduct.

This did happen to me, I got my bike stolen after the 11 payment and although I did have to pay the 12th, my employers told me that there was no transferal fee. It was insured and I ended up with my Aggressor as a brand new replacement.

Maybe it was down to my employers rather than general policy... would love to know what other employers decide. Not that it is going to be a habit, I still miss the bike that was nicked.


CycleScheme Quote - unfortunately nothing about final payment...but isn't that for the tax office?:

Who is responsible for maintaining the bike and what happens if it is stolen?
It is the employee’s responsibility to maintain the bike. Cyclescheme Partner Shops will be able to advise about maintenance and servicing depending on how the bike is used and stores offer a free first service. If the bike is stolen, as long as the employee replaces the bike and continues to use it mainly for commuting purposes, the employer can continue to take the salary sacrifice reductions from GROSS salary. This means the participant can still take advantage of the income tax and National Insurance Contribution (NIC) savings. Cyclescheme strongly recommend that scheme participants insure the bicycle and safety equipment as soon as they collect it from the store.