HMRC requires that, if you wish to keep your bike and your accessories after your cycle-to-work plan ends, you must pay the ownership payment. Without paying it, the HMRC deems that you received a taxable ‘benefit’ of being given the equipment without paying it’s market value at the time.

The ownership payment must equal the deemed residual market value of your cycle-to-work package at the end of your hire agreement and is calculated based on HMRC’s “acceptable disposable values” at that time:

In practice, the ownership payment will reduce your initial tax savings by a corresponding % from the above table. Eg. if you hired a bike worth £2000 over 2 years, and you are in a higher rate tax band (£50,270 to £150,000), your final income tax and NI savings would be calculated as: (42% * £2000) – (17% * £2000) = 25% (£500). Under our trade-in option you don't pay the ownership payment, and under our roll-over option you can spread it out over time. In any scenario, you are still saving!

Note that the ownership payment will not apply if you simply hand back the bike or choose to trade in your bike with Blike or if you roll-over the same bike with one of our "services only" plans.