To join my company's cycle to work scheme (I also work in HR) to buy a bike for my son

[Bumblelion]

I have worked at my company for over 20 years and I deal now exclusively with employee's flexible benefits, i.e. we give employees an amount of money (%) on top of their salary and they can spend it as they wish and I co-ordinate their choice(s).

One of the new benefits that we are offering our employees is that they can buy a bike up to the value of £500 and the company pays the VAT on the bike and it works as a salary sacrifice in that the cost of the bike (excluding VAT) is deducted from your monthly gross pay (i.e. the employee also saves on tax and N.I.).

This is a verified scheme offered by the Inland Revenue.

... well, the company realises that not everyone can buy a bike and use it to ride to work (for example, where I work in London the company does not have facilities to store the bikes) and to that effect the idea is that all employees can buy a bike, whether they ride it to work or not.

... well my son (aged 11) has never been able to ride a bike (is very sporty but has never achieved the balance/co-ordination) but this year when he spent 2 weeks at his dads he learnt to ride a bike (borrowed off a friend).

I told him I would treat him to a bike (not Christmas/birthday present) and now my company offers this scheme.#

Ideally, I should be buying myself a bike to ride to work (whether that be to ride to the office or only to the local train station).

Do you think I am being unreasonable in saving the VAT, my own tax and N.I. in buying a bike that my son can ride.

The reason I am buying him a bike in the 'bike to work' scheme is that he has just started high school and, instead of me driving him every morning (about 5 minutes drive, 25 minutes walk), he will use the bike to get to school so in effect I am doing what the Government offers in that I will not be using my car and it helps my carbon off-setting.

My only concern is how can I explain to my HR department (in which I work) why I would be using a GT Air 2009 (BMX) bike to ride to the station?

Do you think I am cheating the 'system'?

[muddleduck]

Hi.
Just caught up with the thread.
Glad all worked out ok.

[Marina]

Do you know, I thought you didn't sound like the bumblelion I remember last night!
Glad it is all sorted

[pointydog]

I think you should just get the bike. I've never known anyone with keen morals to work in HR

[Kathyis6incheshigh]

Hope your ds loves the bike Bumblelion xxxx

ps - I knew you were pissed

Now how about the govt setting up a scheme for tax relief on bikes for kids to encourage them to cycle to school???

[Bumblelion]

Unfortunately for me, it seems my 'off' days are always that more 'off' if that makes sense, although thankfully they don't occur too often - otherwise I would have NO friends!

[Bumblelion]

Unfortunately for me, it seems my 'off' days are always that more 'off' if that makes sense, although thankfully they don't occur too often - otherwise I would have NO friends!

[rebelmum1]

I guess most people in this scheme aren't cycling to work. A friend of mine got a free bike! She still drives and cycles at home for leisure.. total waste of tax money if you ask me.

[SalLikesCoffee]

Ah that's fine, we all have our off days. Bet your son can't wait for it.

[AMumInScotland]

Well done for changing the order, and also well done for coming on here and saying so. Glad you feel better for it.

[Bumblelion]

... Just had confirmation that the bike is coming on Monday as I have paid for it using my bank card and feel a lot better that I am not cheating the system (although it does seem that it is cheatable, if that makes sense).

My son is happy and I don't feel guilty although (because I am now not saving on the tax and N.I.) it is forming part of his Christmas present which he understands.

I have never cheated the system and didn't intentionally want to cheat but just wanted other people's perspective on what I was doing.

I now feel I have done the right thing and feel a lot better as a person/employee/mother, etc.

Last night was not a good night for me and I let off quite a bit of steam on this thread (unreasonbly so) but today is a new day and onwards and upwards and now I feel I can go into work and hold my head high.

The lady who is co-ordinating the ride to work scheme did not query why I placed my order and have now cancelled it so no embarrassment on my part.

[nooka]

Good for you. Sometimes we are all guilty of protesting too much . I hope your son enjoys the bike, and you know you will still be saving money on the drive and supporting him to be fitter and more independent, so you win either way.

[pigleto]

If you work in HR you do have to be more careful than other workers as they will all be watching you. You have done the right thing. I hope that nobody will get the wrong end of the stick because you have (ligitimately) ordered the bike through work.

[thomsc]

There you go, i should have scrolled to the end of the thread before posting. Apologies.

[thomsc]

I haven't read all the posts, so might be repeating, but...

My DW works in HR, and I imagine her reply would be - wouldn't you have to reprimand (at least) anyone that you discovered had done this?

When I ask her to do something on the internet at lunch for example, she says she routinely has to discipline people for such activity and would not feel right doing it herself.

If you know/think this would be against your company's policy, possibly even the Inland Revenue's then you know you shouldn't have done it.

[Bumblelion]

I apologise for my outburst last night - I had had a drink (long story, won't go there now) and ...

I have cancelled my cycle to work 'bike' order and have ordered the same bike, through the same company, but paying for it up-front and not through my company.

To be honest, I think I was being unreasonable and I was looking for someone to say that what I was trying to do wasn't wrong but, obviously, deep down, I knew it wasn't right because otherwise I would not have written this message in the 'am I being unreasonable' topic.

[nooka]

Oh, and the equipment technically belongs to the company and is leased to the employee. These are the rules:

Employees use the equipment mainly for qualifying journeys: i.e. for journeys made between the employees home and workplace, or part of those journeys (for example, to the station), or for journeys between one workplace and another

The tax exemption only applies when an employee mainly uses the cycle and cyclists' safety equipment for qualifying journeys. A qualifying journey for an employee means a journey, or part of a journey, between his or her home and workplace, or between one workplace and another, in connection with the performance of their duties of employment. So, for example, cycling to and from the station to get to work would qualify. [In this case, 'mainly' means that more than 50% of time using the cycle and safety equipment must involve a qualifying journey.

So buying a bike with this scheme which is never going to be used in the way intended is clearly fraudulent.

Oh and the scheme is not to improve health per se, it is to discourage driving (clearly not a factor for the OP).

I think that the company, the bike shop and the OP could be in trouble here. The OP because she has committed fraud, the bike shop for selling her a bike that was clearly not for her own use and therefore eligible under the scheme and the company because it has no proper method to check that the programme is being implemented properly. That of course may be an issue for the OP again, because she may be responsible as part of running the benefit schemes to put in place checks.

I am always amazed at what people will risk for the sake of a few pounds.

[Typhoon]

How are the directors at your company 'fleecing the system'? From the little you said, all it seems they are doing is merely taking advantage of something - childcare vouchers - that they are rightfully entitled to regardless of their salary level.

And the fact that you're in HR is relevant. You should be setting an example. Just because other people fleece the system doesn't make it a behaviour worth copying.

In case you haven't guessed, I think it would be unresonable for you to use this to buy your son's bike Not unless you get express permission to do so from your head of department first.

[nooka]

It is a benefit for employees only. Not their children or anyone else. So it is fraudulent for Bumbelion to use it. I would be surprised if her directors were claiming nursery vouchers unless their scheme specifically allows it. Our is capped at 30k I think. Of course people cheat the system when they think it is to their advantage and they won't get caught, but for the person who administers the scheme to abuse it rally indefensible. I think it would be at least a disciplinary matter should she be caught out.

We had a similar scheme at work. I already ride to work, so didn't need it. I didn't even think about using the scheme for my children, although they would like new bikes. In the same way I could claim for having my eyes tested and a voucher towards my glasses. I don't because I have had to wear my glasses since I was a child, and my poor vision has nothing to do with work. I have colleagues that do, and think this is very very dishonest.

However Bumbelion was clearly looking for ideas to save her skin if she was caught buying the bike, not opinions on whether it was right to do so.

[tearinghairout]

If you're thinking of buying it for DS you must clear it with your bosses first & have it all out in the open, for the reason that has already been raised - you can't afford to be perceived as having abused the system. Have your manager OK it.

If you're not prepared to have this out in the open then that proves you know it wouldn't be allowed!

[hannahsaunt]

Hi

I said that because it's what happened to a colleague who wanted to buy a bike for his daughter - it was made clear that this was outwith the scope of the scheme and was detailed in the not so very small print on the leaflet about the scheme.

[Kathyis6incheshigh]

Is Bumblelion drunk? She sounds it.

[tearinghairout]

Bumblelion - I have to disagree with your statement that everyone will cheat the system to their own benefit. Not true.

Why don't you just forget the scheme & buy your DS a bike, then you can sleep easy at night - a clear conscience is non-negotiable imo.

[muddleduck]

Thanks to the OP I've just remembered that last month was my last CTW payment so I get £50 extra in my pay this month.

Maybe I should buy ds a new bike with the extra cash

[SmugColditz]

It is not the company's responsibility to assume you are dishonest enough to abuse their scheme, it's your responsibility not to do it. Your argument is like saying "It's not my fault I took £10 off my friend's kitchen surface, she left it there and she knows I'm skint."

[amidaiwish]

oh get over yourselves
buy the bike

live on.