C2W & Redundancy

[W66OCH]

I was going to take up the co. C2W scheme at the end of the year to fund training bike/winter hack, however, looks like redundancy is in the offing at some point soon (probably January). Is there any benefit in taking up the scheme ie. the co. would write off the debt?

just though I would ask in case someone has been in a similar position?

[P-Jay]

W66OCH said:

I was going to take up the co. C2W scheme at the end of the year to fund training bike/winter hack, however, looks like redundancy is in the offing at some point soon (probably January). Is there any benefit in taking up the scheme ie. the co. would write off the debt?

just though I would ask in case someone has been in a similar position?

I was told in the details of my package last year that all remaining payments due from a C2W would be taken from the pay-off. Not sure if that meant with / or without the tax break.

[ratbane]

I think you find that under the terms of agreement you have to pay ALL the tax back too.

[Fatman2]

^^ I think different schemes vary on this. My agreement (with Evans) simply states that you just have to pay tax on the outstanding balance. This seems sensible to me as you would have been fully eligible for the tax break whilst employed. Seems a bit spiteful to ask you for all the tax upon being made redundant.

As always though, best read the small print thoroughly to see what yours says.

Personally though, I wouldn't bother if you're being made redundant in Jan. You'll only get a few months of tax free benefit and will probably be able to save more from a shop in the sales.

[W66OCH]

Thanks for the replies, our scheme opens in a few weeks so i can check the T&Cs before making a decision & like you say i can probably get a better deal in the sales with my redundancy money

[anonymous-user]

Be careful on your scheme with the new HMRC rulings you'll be nailed for at least a 25% transfer fee to take ownership of bike if your made redundant in the first 12 months of the scheme.