What happens at the end of a Cycle to Work Scheme?

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.

What happens at the end of a Cycle to Work Scheme?

So, you’ve reached the end of your hire period

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:

  • Option 1: A Zero-cost extended rental option, You pay absolutely nothing for the duration of this extended rental but it allows you to run the bike value down to 0 where we will automatically transfer ownership to you. This is far and away our most popular option.
  • Option 2: Buy the bike (and package of goods) at its current market value. If you want to take immediate ownership of the bike it can be purchased at roughly 18%/25% of the original RRP.
  • Option 3: Or, you can return the goods to Cycle Solutions

Find out more about each option below

Option 1: Entering an extended rental

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.

Option 2: Buying the bike back immediately after the salary sacrifice ends

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.

Bike age If original bike / accessories cost is less than £500 If original bike / accessories cost is over £500
1 year 18% of original value 25% of original value
4 year 3% of original value 7% of original value
6 years or more 0% of original value 0% of original value

Option 3: Returning the goods

You can opt to return the bike and accessories Cycle Solutions.

What if I leave my employer whilst I’m still signed up to the scheme?

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.

Are you approaching the end of your scheme?

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.