Cycle 2 Work Scheme – Late to cancel

greencyclist2021

I recently utilised the Cycle to Work scheme supported by my employer and decided to invest in a good electric bicycle. After receiving the details from the third party, I made the cycle purchase from a local (UK) bikestore that supports the scheme. In the purchase, I followed their guidance where I applied the voucher in full and paid the extra costs directly (as prompted by their web service) as the overall price was above the value of the voucher. However, a month later the company selling me the bike told me that I could not use the Cycle to Work scheme as one is not allowed to top-up the voucher. I attempted downscale or remove parts from the cycle, but that wasn't a feasible way to keep the cost under the voucher limit, so after going back and forth between me and the bicycle shop, the order was cancelled. They admitted they were wrong initially accepting it but wanted to follow the regulations. That's fine. However, my salary reduction is ticking off monthly and I am unable to cancel the scheme as one can only do the cancellation during the first 14 days (by which time I wasn't aware of the issue). I wonder what is the sensible way out of the situation?

drhaggis

I'd get in touch with HR/Payslips ASAP.

EDIT: In any case, if the shop accepted the voucher, surely they are now obliged to deliver on the bike, right?

greencyclist2021

Thanks drhaggis for the pointers. The shop did accept and confirmed the purchase with the voucher, but later they realised that the voucher needed to cover the whole sum, which wasn't case here as I paid directly the excess. So they backed down and cancelled the order afterwards. I have contacted HR but I'm just worried that the third party who is handling the funds will get to keep the funds accrued as the contract does not specify any conditions where scheme is cancelled and refunded.

daniel_b

If it were me, I would be onto my scheme provider and or HR, explain the situation and see if the provider can send you out a fresh LOC - have you found anywhere else that will provide the bike or kit that you need?

That's really shoddy service from them, who was the retailer?

super_davo

I would just find a different bike shop!

mully79

You dont say which scheme. It is worth speaking with the scheme provider first as they will know the hoops that can be jumped. Usually it needs a willing employer and they tend not to like increasing their liability over their individual limit.

My memory is hazy but im sure there was a way of paying your employer the difference to share the liability. (Assuming 12 month) They would then take the full voucher amount divided by 12 as salary sacrifice and refund you your contribution monthly. I cant remember the tax implications.

greencyclist2021

Thanks for all the suggestions and helpful advice. HR could not help as the cancellation was not possible after 14 days. I'm reticent to name the bike shop as I feel this is the combination of the scheme operator (Sodexo) and HR which both allowed this to happen knowing that my bike was over the limit and they would not allow top-ups but HR actually suggested that I top up the sum as some shops allow this to happen. And the bike shop played their part (by allowing the top up initially) so I never had a possibility of cancelling. I have extended the LOC but I have no need for more affordable bike (I was gunning for an ebike) as I have two existing ones (road bike and old MTB). so I feel stuck with the current Cycle 2 work scheme which will tick away the next 10 months from my salary.

mully79

That’s bad news but there will always be people willing to buy a brand new bike at the price you would actually pay through your scheme. lots of peoples firms don’t run one at all. Just don’t tell anyone.

daniel_b

greencyclist2021 said:

Thanks for all the suggestions and helpful advice. HR could not help as the cancellation was not possible after 14 days. I'm reticent to name the bike shop as I feel this is the combination of the scheme operator (Sodexo) and HR which both allowed this to happen knowing that my bike was over the limit and they would not allow top-ups but HR actually suggested that I top up the sum as some shops allow this to happen. And the bike shop played their part (by allowing the top up initially) so I never had a possibility of cancelling. I have extended the LOC but I have no need for more affordable bike (I was gunning for an ebike) as I have two existing ones (road bike and old MTB). so I feel stuck with the current Cycle 2 work scheme which will tick away the next 10 months from my salary.

@greencyclist2021 did you ever get this sorted?

I'd lay it on heavy with the shop, and if you can't get anywhere, ask them to send you a document to show you have X amount of credit (From the voucher) on your account with them.
Then in 10 months time, arrange a 2nd C2W amount, this then gets added to your account 'balance' thus enabling you to buy the ebike you actually want.
The shop would need to agree of course, but they made a mess up, so they should be willing to accommodate a request like this imho.

Bit strung out, but should get you there in the end.