Stolen Cycle to Work bike

denkmit

Hey there,

Looking for some advice on a stolen bike, and a replacement, as I can't quite figure out the contract I have.

My bike was stolen from outside work a few months ago. It wasn't insured (I know, silly mistake) but was taken from my employer's supposedly secure bike lock-up, because of a few rather silly design flaws that makes it easy to get into.

I've tried claiming off their insurer but failed, so next step there is to talk to Citizen's Advice.

However, I've had a look at my C2W contract, and it states:

If you replace the Equipment this will be at your cost and if you agree this in writing with the Employer, you can still have the benefit of the tax exemptions referred to in section 2.

Has anyone any advice on what this means? Does it mean that it's possible to buy a replacement at the pre-tax cost of around £400 instead of the £600 I paid?

Thanks!

thistle_

I think it means that if your insurance (or in this case you) replace the bike, then you aren't liable to pay back the tax you saved by buying it through the cycle to work scheme.

I guess there's got to be some safeguard against someone buying a bike in month 1, getting it stolen in month 2, paying off the outstanding cycle to work (without tax) and selling on the virtually new bike at close to RRP.

I take it you're still in the phase of paying the monthly payments for the bike?

rolf_f

I'd ring up the scheme provider. It's an odd one. Technically, you are still benefitting from the tax exemption (ie you borrowed, for example, £1000 at a cost of £700 over a year. The fact that you had that £1000 stolen is another issue entirely) so I don't see how you can get another tax exemption for a new bike as you are still paying for the old one.

Edit - Cyclescheme says this: If the bike is stolen, as long as the employee replaces the bike and continues to use it mainly for commuting purposes, the employer can continue to take the salary sacrifice reductions from GROSS salary.

I think what this means is that if the bike is stolen, potentially you would have to pay off the remaining cost of the bike and probably without the tax savings (on the basis that you can't commute to work on a bike you don't have). However, what this means is that you can still keep taking the salary sacrifice for the rest of the year. Effectively, it means that you are getting a tax break to run a bike for commuting for a year and you can keep doing that even if you lose the first bike.

What it means then is that you can't get another bike on the scheme this year but you have only lost the tax free value of the bike rather than the retail value. It doesn't mean that the tax payer gets to subsidise you another bike because you didn't insure the first one!

IanLD

Know someone it happened to and he had to continue to pay for the bike he no longer had. I'd just keep paying and write it off until the next time you can apply.

I've bought locks both as accessories under the scheme and then further ones to leave at work and lock more of my bikes together in the shed. Leave one of my locks at the bike stand so it is ready for me and I don't need to cart it around.

As has been said above, you may end up being liable for tax as you are no longer using the bike, so I'd not make too much of an issue of it being stolen other than the usual reporting to police etc. Hope you are reasonably close to a new start to your scheme. Think Rolf is spot on with the replacing the bike meaning you still get the tax benefit.

I see the points you've raised about the cycle shelter, but as you were using equipment the employer was loaning you I suspect that you are liable whatever the security of the shelter. Similar to you using a laptop from work where you are responsible for it.