If you`re looking to save some money on your daily commute, you may want to consider the Cycle to Work Scheme. This scheme allows employees to hire a bike from their employer at a reduced cost, which can then be used for commuting to work.
To take advantage of this scheme, you`ll need to sign a Cycle to Work Scheme Hire Agreement with your employer. This agreement outlines the terms and conditions of your bike hire, and sets out your responsibilities as a participant in the scheme.
Here are some key things to look out for when signing a Cycle to Work Scheme Hire Agreement:
1. Payment Terms: The agreement should outline how much you`ll be paying for the bike, and how long you`ll be hiring it for. Typically, you`ll make monthly payments over a period of 12-18 months.
2. Maintenance and Repairs: It`s important to understand who is responsible for maintenance and repairs during the hire period. In most cases, the employer will cover the cost of repairs and maintenance, but you may need to pay for any damage caused by misuse or neglect.
3. Insurance: Check whether the bike is insured under the scheme, and what level of cover is provided. You may need to take out additional insurance if you`re using the bike for other purposes beyond commuting to work.
4. End of Hire Period: At the end of the hire period, you`ll have the option to buy the bike outright or return it to the employer. If you choose to buy the bike, you may need to pay a nominal fee to transfer ownership.
5. Tax Implications: The Cycle to Work Scheme offers a tax-free way to hire a bike from your employer, which can save you up to 42% on the cost of the bike. However, there are limits on the value of the bike you can hire under the scheme, so make sure you understand these before signing the agreement.
By understanding the terms and conditions of the Cycle to Work Scheme Hire Agreement, you can ensure that you`re getting the most out of the scheme and saving money on your daily commute. Be sure to read through the agreement carefully, and ask any questions you have before signing on the dotted line.