Cycle to work scheme - using someone else's?

newcyclist19 · Post by **newcyclist19** » 13 Jul 2019, 11:33pm

I would really like to use the cycle to work scheme but my employer has not signed up. However, my brother's employer is signed up to it and my brother has no interest in taking it up. Does anyone know if I would be able to (unofficially) use his scheme to get a bike? I imagine this is 'not allowed' but is there anything in place to actually stop this from happening? Thanks

robgul · Post by **robgul** » 14 Jul 2019, 7:37am

Given that the scheme relates to income tax savings then "personation" would probably be classed as fraud by HMRC.

As you surmise there is nothing in place to stop your brother "lending" you the bike on a long-term basis - but if your brother is rumbled doing it then his employment might be in jeopardy.

.... the same sort of issue arises when two bikes with a total value inside the value limit are bought on the same voucher :wink:

Rob

gbnz · Post by **gbnz** » 14 Jul 2019, 11:29am

Buy a pair of bolt croppers, select a decent bike locked up in town and it'll be yours for a minimum of effort and cost

Cyril Haearn · Post by **Cyril Haearn** » 14 Jul 2019, 4:25pm

gbnz wrote:Buy a pair of bolt croppers, select a decent bike locked up in town and it'll be yours for a minimum of effort and cost

Clearly marked as irony, 'humour'?

What would be the problem if one bought two or three bikes?

100%JR · Post by **100%JR** » 14 Jul 2019, 5:51pm

The bike is technically owned by your brothers employer and you "hire" it until final payment is made saving on tax.Probably fraud but then 99% of CTW bikes aren't used to cycle to work either :lol:

It used to be one bike per voucher and the employer could ask for the bike or a small lump sum(current value of bike less "hire" charged) at the end of the "hire" period.Not many do/did though.

Cyril Haearn · Post by **Cyril Haearn** » 14 Jul 2019, 5:59pm

Right again I fear, 100%
Just like the scrapping cash payment for old cars, just trying to sell more bikes

andrew_s · Post by **andrew_s** » 14 Jul 2019, 6:46pm

Cyril Haearn wrote:
gbnz wrote:Buy a pair of bolt croppers, select a decent bike locked up in town and it'll be yours for a minimum of effort and cost

Clearly marked as irony, 'humour'?

I'd interpret it as "if you want to get hold of a cheap bike illegally, the simple method has the advantage of not leaving your brother's fingerprints all over the deed"

rfryer · Post by **rfryer** » 15 Jul 2019, 8:52am

As others have said, getting a bike on your brother's scheme is probably fraudulent.

However, in my experience, there are no checks that a C2W bike is actually used as such, and I suspect that a lot of people don't use them for this purpose. Also, you could decide you're not upset by the ethics of it, given that the bike will (somewhat unusually) be used for actually cycling to work.

robgul · Post by **robgul** » 15 Jul 2019, 8:57am

.... one other thought - should your brother change his employment (of his own accord!) then he would be liable to pay off the outstanding amount (normally as a final salary deduction) in one hit.

Rob

Bonefishblues · Post by **Bonefishblues** » 15 Jul 2019, 9:21am

robgul wrote:.... one other thought - should your brother change his employment (of his own accord!) then he would be liable to pay off the outstanding amount (normally as a final salary deduction) in one hit.

Rob

Indeed.

In summary, it could be done, depending on your personal ethics and your relationship with your brother, but it really shouldn't.

PH · Post by PH » 15 Jul 2019, 2:30pm

robgul wrote:.... one other thought - should your brother change his employment (of his own accord!) then he would be liable to pay off the outstanding amount (normally as a final salary deduction) in one hit.

Rob

Yes, and in case it isn't clear from what Rob is saying, that loses the tax benefit on the outstanding amount, you can't sacrifice salary you're not going to earn. I know someone made redundant two months into a C2W scheme and they ended up paying more for the bike than if they'd bought with cash in the first place.

Bonefishblues · Post by **Bonefishblues** » 15 Jul 2019, 2:31pm

PH wrote:
robgul wrote:.... one other thought - should your brother change his employment (of his own accord!) then he would be liable to pay off the outstanding amount (normally as a final salary deduction) in one hit.

Rob

Yes, and in case it isn't clear from what Rob is saying, that loses the tax benefit on the outstanding amount, you can't sacrifice salary you're not going to earn. I know someone made redundant two months into a C2W scheme and they ended up paying more for the bike than if they'd bought with cash in the first place.

Good point

robgul · Post by **robgul** » 15 Jul 2019, 2:51pm

Bonefishblues wrote:
PH wrote:
robgul wrote:.... one other thought - should your brother change his employment (of his own accord!) then he would be liable to pay off the outstanding amount (normally as a final salary deduction) in one hit.

Rob

Yes, and in case it isn't clear from what Rob is saying, that loses the tax benefit on the outstanding amount, you can't sacrifice salary you're not going to earn. I know someone made redundant two months into a C2W scheme and they ended up paying more for the bike than if they'd bought with cash in the first place.

Good point

I meant to mention the tax issue on the salary you don't get .... although I think there are some provisions in the event of redundancy.

Rob

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Cycle to work scheme - using someone else's?

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