Bankruptcy and salary sacrifice

john10001

PippaGirl wrote: »

Even so, they've paid £682 and got nothing to show for it.

That's incorrect. They have a bike to show for it at substantially less than it would have cost to buy new. They also make savings on what it would have cost to drive to work or the massive expense that is public transport today. They also have health benefits. I don't think you're understanding the whole cycle2work scheme and how it works, and how it saves you money. Ownership passes to the employee at the end of the scheme. If you're a higher income earner you save even more than Gaz pointed out above and you can opt to not keep the bike after the additional year and get the certificate value that you paid back.

john10001

I believe it is possible that in a DMP through an IVA they can request that you cancel your pension contributions and anything similar. I am unsure whether you have to or if you can decline that. I'm also unsure whether that would also be the case in bankruptcy? If it is not an asset you actually own in the case of a bike on the cycle scheme or a car that is on a hire purchase plan it is not an asset they would be able to sell. Can your means to earn an income and livlihood be removed? In bankruptcy after they have done everything they can all debts are supposed to be forgiven afaik?

PippaGirl_2

john10001 wrote: »

That's incorrect. They have a bike to show for it at substantially less than it would have cost to buy new. I don't think you're understanding the whole cycle2work scheme and how it works. Ownership passes to the employee at the end of the scheme.

That's incorrect.

The scheme I have been reading about as I said is simply a leasing scheme and the bike is never owned by the employee. Taken from here

3. How the Cycle to Work salary sacrifice scheme will operate
3.1 Under the proposed scheme employees will be able to choose a bike and associated equipment up to the value of £1,000 (including VAT). The County Council will purchase the bike and in effect lease it back to the employee via a salary sacrifice agreement. The employees gross salary will be reduced by the cost of the bike and equipment (excluding VAT) for a period of 12 months.
3.2 At the end of the hire period, the Council may be able to offer to sell the equipment to the employee for its fair market value at that date. Otherwise, it will be returned to the Council (or its nominated agent) at the employee's expense for disposal. The employees gross salary would then return to it's pre-sacrifice amount, as appropriate.

Mara69

PippaGirl wrote: »

Even so, they've paid £682 and got nothing to show for it.

That's not actually true. My travelling costs are £1,020 a year. If I were to take part in that scheme, then my travelling costs would be £682 - thereby saving me £338 per year. If, at the end of the year, they sell the equipment to me for £338 then I've broken even - plus I have little or no ongoing travelling costs

Plus, I don't think you have to spend the whole £1k.

PippaGirl_2

Yes, I was thinking of material goods really when I said nothing to show for what they've paid. I think the council are quids in on this deal though.

Tupperware_Queen

I am a nurse, and there is no problem within the NHS with bankruptcy. I discussed with my manager, as I do a lot of ordering etc, and wanted to make sure that it was all ok.

As regards the car, you will have to discuss that with the OR.

alastairq

Mara69 wrote: »

That's not actually true. My travelling costs are £1,020 a year. If I were to take part in that scheme, then my travelling costs would be £682 - thereby saving me £338 per year. If, at the end of the year, they sell the equipment to me for £338 then I've broken even - plus I have little or no ongoing travelling costs

Plus, I don't think you have to spend the whole £1k.

You are forgetting the 'thighs-like-tree-trunks' after the year?

sniggings

PippaGirl wrote: »

Even so, they've paid £682 and got nothing to show for it.

it's the way the law is worded, is why they have to say you own nothing and "may" be offered to buy the bike at the end of the term, in real life the offer is always made and for a nominal amount.

If you were guaranteed to be able to buy the bike at the end of the term it would then change to an hire purchase agreement or similar, and the business could not make the savings on tax etc as they do on this scheme.

notanewuser

sniggings wrote: »

it's the way the law is worded, is why they have to say you own nothing and "may" be offered to buy the bike at the end of the term, in real life the offer is always made and for a nominal amount.

If you were guaranteed to be able to buy the bike at the end of the term it would then change to an hire purchase agreement or similar, and the business could not make the savings on tax etc as they do on this scheme.

No longer nominal, I'm afraid.

notanewuser

Tupperware_Queen wrote: »

I am a nurse, and there is no problem within the NHS with bankruptcy. I discussed with my manager, as I do a lot of ordering etc, and wanted to make sure that it was all ok.

.

I daresay that depends on the role, actually. Can't imagine those holding the NHS purse strings are allowed to go bankrupt and keep their jobs.