Cycle Scheme Advice

Mankysteve

The op wasn't asking for arguments about whether it's worth it not. So let's keep it on subject and actually try and help the op rather than bickering. Start a separate post for that.

What do your pay cheque for last few months say?

Does it show the deduction?

Do you have legal cover on your house insuranceas it may be worth talking to a solicitor?

fred246

I think if I was the employer of the OP I would want the money owed to be taken out of his final pay packet. You could spend years chasing the employee for the debt and it might never be recovered. All the OP could request is that he pay it in installments but I don't think I'd agree if I was his employer.

chunkytfg

Question to the OP ignoring the bickering about the validity/worthwhileness of the C2W scheme.

Did you not at any point between getting the bike and now check your pay slip and notice you pay had not gone down or there wasn't a deduction for the C2W bike? (You don't mention the time they failed to take money although i'd take a guess at it being 750-1000 pounds)

SkyeKnight

Nasqueron wrote: »

Whelp it's just as I said in my first post, the only people who think it's a bad scheme don't understand it as you proved.

Example:
Specialized Allez 2015 - great starter bike RRP £600, discount to £450
Specialized Allez 2016 - same spec, £600

Put the new one through C2W - bike is £408 - add on the £42 7% deposit at the end (not all schemes do this by the way) and it's £450 so you have the new bike on the same price as last year's sale.

I'm surprised you are quite so firmly in favour of this scheme as most people seem to be advising that it is no longer worthwhile.
If I do the same calculations as you I first take off a 32% discount because the vast majority of people, including myself, are not higher-rate tax payers. And then at the end of my company's scheme I have to pay back 25% of the cost because it's a bike that cost over £500. So a discount of 7%. However last year my husband got made redundant 3 months into the tax year and had to pay way more for the bike than it would have cost new!

Not really worth the risk in my opinion for such a tiny discount that you could probably negotiate yourself at the shop. Am I missing something here?

Mr_Singleton

SkyeKnight wrote: »

Not really worth the risk in my opinion for such a tiny discount that you could probably negotiate yourself at the shop. Am I missing something here?

The truly terrifying thing that people don't seem to understand, aren't informed about and those that gush about what a wonderful deal it is seem to forget that in sacrificing pay your also sacrificing not only your contributions to your pension but also your employers contribution which will combine to about 9% to 20% of pay. Compound that loss over 30/40? years and your pension pot will be £000's worse off.

SkyeKnight

Mr_Singleton wrote: »

The truly terrifying thing that people don't seem to understand, aren't informed about and those that gush about what a wonderful deal it is seem to forget that in sacrificing pay your also sacrificing not only your contributions to your pension but also your employers contribution which will combine to about 9% to 20% of pay. Compound that loss over 30/40? years and your pension pot will be £000's worse off.

Well, hopefully people would have the sense to keep their pension payments the same, however it is an interesting point. I guess losing an employer's contribution of 7% or more on that £1k would totally wipe out the so-called "savings".

Mortisha54

I have been forced out, resigned, have a temp job I started , finished on Wednesday, started temp role on Monday this wk. They owe me 2 wks money , I owe them about 900 for cycle, they owe me about 700 before tax and NI . I can't borrow any money as now I have no job or at least I do have an ongoing temp contract for approx. 3 mths. They are getting most of their money back do you think I can offer them a monthly amount to pay off the balance. Originally it was over 18 mths, at time of agreement I had no idea I would be leaving. The balance will be around £200. I can't afford much at moment as when they ta.ke all my salary I will have no pay to live on or pay bills until I get first wks pay on the 22nd.

Mortisha54

I only worked there for 4 mths... Thankfully... Last job I was there for 7 yrs. glad to be away from it and a dreadful manager. They r all unhappy in the dept, 5 have left in less than 10 mths, doing same role, shocking really.

Mortisha54

Also what happens to my tax allowances for that 2 wk period, they take my whole gross pay off me... So what goes on after... I pay no tax or NI, ? And does that get factored in as my allowances for that period are taken off me?

RichardD1970

Mr_Singleton wrote: »

The truly terrifying thing that people don't seem to understand, aren't informed about and those that gush about what a wonderful deal it is seem to forget that in sacrificing pay your also sacrificing not only your contributions to your pension but also your employers contribution which will combine to about 9% to 20% of pay. Compound that loss over 30/40? years and your pension pot will be £000's worse off.

I've just paid my final payment for my bike on cyclescheme.

My pension is salary sacrifice and the contributions haven't changed, assume because the pension is sacrificed before the cyclescheme (that's the order it shows on my payslip).

I got an £1100 electric bike from a small independent dealer. Had to pay the £100 myself and had the £1000 under the scheme, no discounts available regardless of payment method.

It has cost me roughly £15 a week in real terms plus £70 ownership fee.

Certainly the cheapest method for me and better than 0% finance.