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dazed and confused
Junior Member
United Kingdom
475 Posts |
 Posted - 07 November 2008 : 16:08:30
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Hi!
I know this has been discussed before so sorry for going over old ground, but I was just hoping someone could clarify this for me for sure:
I am currently in a Bike Rental Agreement with my Employer (bicycle) - does this get entered in S. 3 - Assets, S. 4 - Creditors, or as an Expenditure, or not at all as has been suggested before???!!!
I do not 'own' the bike - my Employer does and I am 'renting' it from them for 18 months. My Employer is not a 'Creditor' as such as it is a 'Salary Sacrifice Agreement'.
The payments on the bike are usually quite low - about £26 / month deducted directly from my wages Tax and NI free, but as I am due to be going away for a year in January they have asked me to pay £150 / month for next 3 months to cover the 12 months I am away.
Confused??? Me too!!!
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John
New Member
United Kingdom
73 Posts |
Posted - 07 November 2008 : 16:18:32
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Hi
I would enter it in section 4 (secured not unsecured) as I think we established it is being purchased by way of a hire purchase agreement (rental followed by ownership on completion of payments).
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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dazed and confused
Junior Member
United Kingdom
475 Posts |
Posted - 07 November 2008 : 16:38:21
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Hi John
Would that not run the risk of it being taken back by the OR though? I really don't want my Employer to get involved in this whole affair if possible.
Could I not put it down as an Expenditure out of my DI? |
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grantspants
Junior Member
United Kingdom
297 Posts |
Posted - 07 November 2008 : 21:24:33
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Hi,
If it is like the Bikes for work scheme my employer does, then you won't actually own the bike on completion of the payments. You would then have to pay them a small fee usually 5% or so to buy the bike from them.
So unless you do this, then technically the bike will never be yours. |
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dazed and confused
Junior Member
United Kingdom
475 Posts |
Posted - 07 November 2008 : 21:37:15
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Hi GP
Thanks for your message!
Yes it is a Bike to Work Scheme.
I do intend on making the final payment at the end of the Agreement - so until then I am thinking it is not an 'Asset'.
So, I am thinking it should go down as an Expenditure??? |
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grantspants
Junior Member
United Kingdom
297 Posts |
Posted - 07 November 2008 : 21:42:10
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Yeah I don't see how you can say its an asset when you don't actually own it. So I would put it down in expenditure and see what the OR says. They can't take something you don't own, but it may have to come out of your D.I, or you may have a good O.R  |
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dazed and confused
Junior Member
United Kingdom
475 Posts |
Posted - 07 November 2008 : 21:48:32
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Hi GP
Yeah I am thinking the same. I just hope that the OR doesn't try and claw back the money...
Cheers! |
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dazed and confused
Junior Member
United Kingdom
475 Posts |
Posted - 10 November 2008 : 11:16:36
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Hi!
Sorry to go back to this again, but if I was to put the Bike Agreement down in the Secured Creditors section, what would be the repercussions of this? Would the debt be written off? Would the OR claim the bike back? Would I be allowed to continue to make the payments?
As I have said previously, I really don't want to get my Employer involved in my BR...
Cheers! |
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Bike Rental Agreement and BR Forms...
