Cycle to work scheme.

UlyseesK

My employer gave everyone the opportunity to purchase a new bike etc. through the Halfords cycle to work scheme. I registered my interest with the scheme as I had used it before a number of years ago.



Unfortunately at about the same time a knee operation discovered I need a knee replacement, so I thought no more of getting a bike and that was that. Or so I thought.


I get a set amount of pay every month and rarely check my pay slip (which is done via my employers intranet). I checked it in June to find that every month, since July last year, £50 has been deducted from my pay for the cycle to work scheme. I contacted Halfords who said that I had signed up for the scheme and in doing so had authorised the deductions. I pointed out that I had not bought a bike and wanted the money back. Their response was that they could re issue a letter of collection so that I can go and get a bike. I pointed out that I had not received a letter of collection so how can it be reissued. I also pointed out that in line with their T&C's if I had received a letter of collection I would have cancelled the scheme within 14 days. As I had not received one I had assumed that I didn't have to.


So, in July when the last deduction is taken from my pay, Halfords will have had £600 from me. I have had nothing from them in return.


I have had a number of discussion with them and the impression I get is that its a bike or nothing. Initially Halfords said it was for me to sort out with my employer, my employer telling me the agreement was with Halfords, the deductions from my pay have been paid to Halfords.



Apparently when I registered with the scheme I had to include an approximate amount that I wanted to pay for the bike, they then deducted this money despite me not buying anything with it.


I am satisfied that I have followed their T&C's to the letter, but here we are. I just wondered if I do have to get a bike (which I will have to sell) or do Halfords have to refund the money?

wesleyad

Regarding whether you can get your money back I'm not sure, hopefully someone else can help.

But really most people I know use the cycle top work scheme as a money maker anyway. The bikes are normally very well discounted so they get the bike from halfords, stick them straight on ebay and make a few bob (yes it's completely against the spirit of the scheme, but people are people). Unless your scheme doesn't have a discount involved?

BoGoF

The problem is you agreed to give up part of your salary in exchange for a bike. You won't have paid tax or NIC on the monthly payment (which is the main benefit of the scheme). So even if you could get the money back (which I doubt) my thoughts are that it should be returned to your employer to then pay you after tax/nic deductiins. So your £600 would be £400 or less depending on your tax rate.

With regards selling it, my understanding is you dont own the bike, you have to make a payment at the end to take ownership.

[Deleted User]

wesleyad wrote: »

Regarding whether you can get your money back I'm not sure, hopefully someone else can help.

But really most people I know use the cycle top work scheme as a money maker anyway. The bikes are normally very well discounted so they get the bike from halfords, stick them straight on ebay and make a few bob (yes it's completely against the spirit of the scheme, but people are people). Unless your scheme doesn't have a discount involved?

It's actually theft as you don't own the bike until way after you have made all your payments. As there are tax savings HMRC would also take a very dim view of selling the bike.

molerat

I know this is dragging up an old thread but you can get a refund if you have not used the voucher. My son didn't buy a bike and as he is now leaving the company with around £500 outstanding he asked what they can do and the scheme have refunded the money to his employer who is paying him back what he has paid less tax and NI.