Who actually owns the cycle to work package?
The cycle to work benefit is a tax-efficient hire benefit. As such, you do not own the bike in the first instance (albeit it is in your care and you can use it as if it were your own).
If your employer operates a scheme with a limit of £1,000 or less...
It's likely that the bike and/or accessories remain the property of the employer throughout the initial Hire Period (which is usually a 12 month period). This is because your employer's scheme is likely to be using the FSMA Order exemption.
If your employer operates a scheme with a limit of more than £1,000...
It's likely that the ownership of the bike and/or accessories will have been transferred from your employer to Cyclescheme and that the equipment will remain the property of Cyclescheme throughout the initial Hire Period (which is usually a 12 month period). This is because it's likely that your employer's scheme relays on Cyclescheme's FCA Authorisation.
There are also cases where your scheme limit is more than £1,000 and the bike and/or accessories will remain the property of the employer throughout the initial Hire Period (which is usually a 12 month period). This would be because your employer likely has their own FCA Authorisation exemption.
Helping hand ✋
What are FSMA exemptions and why does FCA Authorisation matter?
The FSMA exemption lets employers operation a cycle to work scheme with a limit of £1,000 or less without needing to be Authorised by the Financial Conduct Authority (FCA). Where this is the case, the employer initially pays for the bike and therefore owns it until the end of the hire period.
FCA Authorisation (whether Cyclescheme's or your employers) allows the maximum limit of your scheme to be raised above £1,000. Where this is the case, it is the entity that is authorised that will own the bike for the initial hire period.
At the end of the Hire Period, you can decide how you wish to proceed. Cyclescheme always recommends choosing to extend the hire of the bike and/or accessories by selecting Cyclescheme's 'Own it later' option. Should you choose this option then ownership of the bike transfers to Cyclescheme so that we can continue to loan you the equipment (for no extra cost) until it is 4 years old, at which point the bike and/or accessories automatically become yours (unless you wish to return them).
For more information on Ownership Options and Fees please read 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.