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After acquiring a bike through your employer, your next question might be: what happens at the end of a cycle to work scheme? We’re here to help navigate what to do and outline the options available.
As you’ve technically hired your bike and/or accessories from the scheme for the length of your signed agreement, there are a few routes you can go down:
Once your initial hire period is over, you can opt for an extended rental. This is where you continue to hire the bike from us, but at no cost to you. Cycle Solutions are unlike some other cycle to work providers as we do not charge a deposit for extended rentals.
At the end of this extended rental period, ownership is transferred directly to you, automatically. This allows you to maximise your savings through the Cycle to Work scheme.
If you’re considering buying the bike after your hire agreement ends, you will need to pay the market value for your goods. This amount varies depending on how long you’ve had the bike and/or accessories and what their initial sale value was. A sliding scale is used to calculate the cost based on these factors.
Below is an example table of the minimum value (aka the one-off payment amount) that HMRC places on a used bike of various ages.
You can opt to return the bike and accessories to Cycle Solutions.
If you leave your organisation whilst signed up to the Cycle to Work Scheme, your salary sacrifice agreement will still be in force. Therefore, if you want to keep the bike, you will have to pay the remaining balance and any of its depreciated value. There is also the option to return it to your ex-employer.
It’s safe to say, there are a few options when you come to the end of your Cycle to Work Scheme. As scheme providers, we try to accommodate for a variety of situations, meaning you aren’t tied into purchasing the bike or entering into a new agreement, it’s all entirely flexible and completely your choice.
Get in touch with us today to find out more.