Why is the ownership process required?
In order to benefit from Income Tax and National Insurance Contributions (NIC) savings, the Hire Agreement you enter into with your employer must be for the hire of the equipment only.
If the agreement allows for ownership to pass to you automatically, this would result in the agreement being classed as a Hire Purchase Agreement and a tax exemption would not be available (meaning no savings can be made).
To avoid your Cyclescheme package becoming taxable; any offer of ownership must be conducted as a separate transaction at the end of your Hire Period.
Helping hand ✋
Ownership doesn't have to be expensive. Cyclescheme always recommends you choose our 'Own it later' agreement - this ensures fantastic end-to-end savings of at least 25-39%.