What is a cycle to work scheme Hire Period?
The cycle to work scheme saves you money by leveraging a tax exemption that exists for the hire of a bike and/or accessories through your employer.
It is during the initial hire period (usually 12 months) that your savings are made. This hire period is governed by an agreement - this is what we call the Hire Agreement.
The Hire Agreement is the agreement that exists between you and your employer (or in some cases between you and Cyclescheme or a finance provider). It formalises things like:
- the value and frequency of the salary sacrifice payments you will make to reimburse your employer for your bike and/or accessories (tax efficiently)
- your responsibilities and obligations regarding securing, maintaining and insuring your bike
- your cancelation rights
- information on warranties and defective equipment
- data protection considerations
You are presented with your Hire Agreement when you apply to join the scheme and you can refer to previous any Hire Agreement(s) you've signed within your MyCyclescheme account.
To learn more about Ownership Fees head over to our answer 'What is an ownership fee?'.
For a personalised savings figure that includes ownership fees, visit our calculator and enter your details.
You can search to see if your workplace is signed up using the search box on Cyclescheme's homepage.