The employee is responsible for the maintenance of the bike during its use and agrees when signing the rental contract. All Cyclescheme bikes have a 12-month rental warranty. Your on-site company will be able to advise you on the necessary maintenance, depending on how you use your bike. You are also likely to give your bike a first free service once you have put it to bed. As your monthly payments on your bike reduce your gross salary, you save the taxes and social security contributions you would pay for that part of your plan during the term of the work cycle contract. Since it has been set up to encourage work trips and not generally for cycling, your employer technically remains the owner of the bike once you have completed the rental time. If you have any questions, please contact us by email: Cycling and goods are the technical property of the UCL, but the staff is responsible for the bike during the rental period. At the end of the rental period, you may be able to purchase the bike and all safety/accessories equipment at a fair market value (excluding vat). Technically, you have rented your bike on the program for the duration of your contract and you have a few options at the end: The Cycle Scheme is a state-subsidized initiative that has been put in place so as not to have to pay taxes and for items purchased under the agreement. You do not need to contact HMRC if you participate in the program. At the end of the 12-month rental period, the bike can be purchased at fair market value.

This payment is subject to a 20% VAT. This is a separate agreement and is not part of the lease agreement. You may also be able to extend the lease by 3 years. If the extension is applied, a down payment will be deducted from your salary equal to the value of your bike after 4 years. The property doesn`t need to be expensive. Cyclescheme always recommends you choose our “Own it later” agreement – which guarantees fantastic end-to-end savings of at least 25-39%. What happens if I quit my job before I finish paying for my bike during the 12 months of rental? A new contract may work for different periods depending on the scheme you signed up for, but usually lasts up to four or five years. Essentially, your employer buys a bike to allow you to get to work and “rent” it to you by the victims of wages (where you save by not paying taxes and social security contributions on the monthly fee). At the end of the rental period, you usually have the option to buy the bike from your employer. The system is managed by a victim/lease contract and implemented in accordance with the government`s Green Travel Plan.

This system offers attractive benefits to workers by encouraging employees to maintain a healthy and active lifestyle while achieving substantial savings on the costs of a bicycle and safety equipment. You can choose any model/model bike worth $5,000 through independent bike shops that participate in this program and make businesses available to local communities.