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. The Cycle2Work (“Scheme”) system is managed by Halfords to allow the employer to offer bicycles and bicycle safety equipment (“products”) to its employees as part of its Worker Assistance Program. Halfords provides the employer with relocation products to its employees or to all employees in the employer group. At the end of the rental period, Cycle Solutions will contact you to discuss the options available. To obtain the tax benefits of the plan, there can be no guarantee or obligation to transfer ownership of you (the employee) as soon as the rental period expires. However, employers often choose to offer this option either directly or through Cycle Solutions. You will then receive a rental agreement with an explanatory cover letter with the following steps. Once your rental period is over, we will contact you to discuss your options. These include the possibility of extending the rental of the cycle at no additional cost until HMRC considers the value to be negligible. This is usually 4 or 5 years, and once this agreement is reached, you will be the rightful owner! The most attractive option for most employees is a free extended rental period, during which they can continue to use the bike for an extended period of up to 60 months. 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. During the extended lease term, the employer is not responsible for contacting Cycle Solutions, as the agreement between Cycle Solutions and the employee exists.
It doesn`t make any difference if you (the employee) change your job over the longer life. The extended rental agreement you must sign provides that it is your responsibility to ensure that the bike and equipment are maintained and used safely. These terms and conditions (as well as the application form) define the entire agreement and understanding of the parties as to their purpose and replace all previous agreements, agreements or agreements, written or written relating to the system. In this case, you should contact the service provider directly and not directly with Cycle2Work. Unfortunately, we cannot give you an update of your application or cancel your contract for you. If you are unsure if your employer is using a service provider or are unsure who the service provider is, please contact your human resources department. By signing the expanded lease, you are committed to insuring the bike and equipment against theft, fire or damage. Even though Cycle Solutions has the safety cycles and equipment for the extended lease period, the agreement allows you to have covered the cycle.
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).