Does cycle to work scheme have any impact on an IVA ? Any advice appreciated.

[adriancox]

Cycle to work scheme.

I have had my IVA for little over 1 1/2 years now no problem. most of my colleagues as of late have taken advantage of the cycle to work scheme, even though like me the live to far away from work to commute by bike.

If you don't know the scheme its where your employer buys a bike, and you pay monthly before tax to keep it. You can give the bike back at any time, and at the end of the term you can chose to give the bike back or buy it at the market value.

I like the idea of getting a discounted bike, to use for leisure and fitness this way, but I am reluctant because of the possible impact it could have on my IVA.

The monthly payment will be on my pay slips I have to sent out at the end of each year.

Any advise would be appreciated

[wickerwish]

I'm sure I've read on here other people joining this scheme. If you can save on other allowances I think its ok.

[adriancox]

I think I might be able to squeeze a little out of my expenditure to afford it (after all its not a massive amount monthly). But. I am a little worried that my IP might think this is non essential spending and should be paid to the creditors, instead of funding me for bike rides.

with it being on my pay slip I am concerned the IP will have no other option at the annual review to force me to hand back the bike and pay the extra money to the creditors

[adriancox]

the online calculator says the net difference in take home pay for the max amount would be £56 per month if was over 1 year. (I am hoping to get a longer period but maybe it is fixed?)

With the household basic being £1900.

Thought it best to put some figures to the question.

[nickjohn]

Would they offset some of your I&E for car travel to work against the cost of the bike to work payments..

[adriancox]

I am not fit enough to cycle to work. YET, and I suppose this is the crooks of it. I plan to maintain the same payment to the creditors. Although my income will be reduced because of the payment for the bicycle.

Hopefully my fitness will improve after some practice, and I might be able to commute reducing the expenditure.

I am unsure how the IVA system will work in this case?

[Shining]

If it isn't going to impact on your IVA payment then I would consider that your IP would look favourably on this scheme. It could be beneficial to your health by increasing your fitness level and as you state eventually may reduce your outgoings by you cycling to work. have a chat with someone in your IVA company and see their views before committing but to me sounds like a good idea

[adriancox]

I will of course discuss this with my IP first. But he has told me time and time again it is his job to ensure all non essential spending is paid to the creditors.

I am concerned that if I ask about this scheme the money I could squeeze from other areas of expenditure in order to afford it, will be used to increase the repayment to the creditors instead.

[mab]

My husband has a cycle to wok bike through the local authority scheme and pays for it through his salary and it has never been questioned. We do have two cars for work but he uses the bike when he can to save on petrol This has never been questioned by IP He only pays 13 a month Go for it this of the local cost pleasure time you would have

[adriancox]

I am with GT, and to be honest I don't like a lot of the negative things on this forum about them. May I ask who you are with mab?

I know this thing may come up more in spring or summer time, but everyone at work is going on about the special on the side extras they get whilst paying top dollar for a bike in the sale (cycle to work has to be RRP). Due to the season, most local dealers are willing to give extras FOC on the shop discounted priced bikes, for cycle to work customers.

Suppose in reality I need every penny I can leading up to Christmas (3 kids to find presents for) and the I have no surplus income, but I also think my eldest is wanting a bike and this could possibly be a one on the side extra from the bike shop, 2 for 1

[wiggle1]

I had a cycle to work bike through the local authority scheme as well and had no problems.

[adriancox]

thanks for your reply's. Being a 3 class type insolent citizen, the possible repercussion with or available income along with that if my employer/friends finds out, is not worth the risk.

Suppose I was just dreaming but thanks for your optimism all the same.