Cycle2work

smoothie262 · Post by **smoothie262** » 28 Oct 2016, 16:18

Hey, I've just recently signed up to the Cycle2work scheme and I'm confused to whether I will own the
Bike after the 18 months payment. Will Royal Mail transfer the ownership to me?

If that's not the case.. doesn't it seem a wast of money?

Thanks

Post by **IloveMYredTROLLEY!** » 28 Oct 2016, 16:22

Those 18 month payments are technically you paying a hire fee to RM to use the bike, they are the legal owner of the bike until you pay a transfer of ownership fee, which is dependent upon the RRP of the bike and how old it is.

smoothie262 · Post by **smoothie262** » 28 Oct 2016, 16:26

Ok so the Royal Mail will definitely offer me the ownership at the end of the 18 month period?

Post by **IloveMYredTROLLEY!** » 28 Oct 2016, 16:33

Well as I was saying in the phone thread earlier this week, the wording of these schemes is silly in my opinion, because the rules say the employer cannot guarantee to offer you a transfer of ownership.

But since I've been aware of the scheme for ~10 years, I've never read anything on a forum where an employee has entered this scheme and their employer has not allowed them to take ownership after the salary sacrifice payments, despite the rules in theory saying the employer could legally demand the bike back.

fangrock · Post by **fangrock** » 28 Oct 2016, 21:10

I've used this scheme twice and after the 18 month period I have always kept the bike. Never ever heard anything from Royal Mail during and after the repayment period.

awesomepenguin · Post by **awesomepenguin** » 29 Oct 2016, 15:16

fangrock wrote:I've used this scheme twice and after the 18 month period I have always kept the bike. Never ever heard anything from Royal Mail during and after the repayment period.

Exactly the case for me. I rang wages to enquire when my final payment was for the bike I had got through the scheme and they told me final payment date and nothing else. The payments stopped after the agreed time period and I never heard anything else.

smoothie262 · Post by **smoothie262** » 31 Oct 2016, 15:44

Does anyone know what the final payment is to transfer ownership?

ted_e_bear · Post by **ted_e_bear** » 31 Oct 2016, 16:51

smoothie262 wrote:Does anyone know what the final payment is to transfer ownership?

That's what I wondered, but looking at the above posts from people who've previously used the scheme it looks like it's nothing and the payments just stop.

toomuchcoke · Post by **toomuchcoke** » 31 Oct 2016, 18:02

smoothie262 wrote:Does anyone know what the final payment is to transfer ownership?

I had a £900 Cycle2Work scheme that ended a short time ago. I had been paying £11.12/week, but the last week the "negative payment" (i.e. the left hand side of the payslip) was £0.15 and there was an entry on the right hand side of "Cycle2Wrk Final Pymts P 6 £1.00". Which frankly makes no sense to me as my understanding was that the final payment was rather more significant than that, but that they did the final payment by adjusting your tax code? Unless that's going to happen next year?

Am vaguely thinking of doing another C2W either next year or the year after, but only if I can work out how to get a Brompton via one of the two schemes the RM offer. Not that I in any way need a Brompton for commuting on, but I do rather fancy one for other reasons!

CAMPINGBLUNDERER · Post by **CAMPINGBLUNDERER** » 31 Oct 2016, 18:19

Your tax code is adjusted to reflect the perceived value of the bike now it's yours, iirc it will show on next years tax allowance