Do You Own the Bike After Cycle to Work Scheme? Guide & Options

Do you own the bike after Cycle to Work Scheme ends? Not straight away. Every bike and e-bike bought through the scheme starts out as your employer's property, hired to you through salary sacrifice. Ownership only passes to you once the hire period finishes and you choose how to take it.

This guide covers the Own It Now fee, the Own It Later route, whether you can sell a Cycle to Work bike, and which isinwheel electric bikes suit the scheme.

Do You Own the Bike After Cycle to Work Scheme?

No, not automatically. During the hire period, the bike legally belongs to your employer or the scheme provider, not to you. This is a deliberate HMRC rule. If ownership were promised to you from the start, the arrangement would count as hire purchase rather than a genuine hire, and the scheme would lose its tax and National Insurance exemption.

Government guidance also expects at least 51 per cent of the bike's use to be for qualifying journeys to work, though providers rarely track this in practice. At the end of the agreed hire term, usually 12 to 18 months, your employer or provider will contact you with three end of scheme choices: own it now, own it later, or return the bike.

Your Options at the End of the Hire Period

Once the hire period ends, you are not left without a decision. 

Own It Now

Own it now lets you take ownership immediately by paying the bike's Fair Market Value, a figure HMRC calculates from the bike's age and original price. This is the quickest way to a clean, unconditional transfer, and it suits anyone leaving their employer mid scheme or who simply wants the paperwork finished. For UK employees, own it now typically costs between 12 and 25 per cent of the bike's original price for bikes under three years old, dropping sharply after that.

Own It Later (Extended Use)

Own it later is the option most UK cyclists choose. You pay a small refundable deposit, usually 3 to 7 per cent of the bike's value, and keep using it at no further cost for an extended period, typically three to four more years. By the time that period ends, the bike's HMRC valuation has dropped to a negligible amount, and ownership transfers to you with no further payment or benefit in kind tax charge.

Return the Bike

If your circumstances change or you no longer want the bike, you can hand it back to the scheme provider at the end of the hire period. There is no ownership fee and no further obligation, though you will not receive any refund of the salary sacrifice payments already made, since these covered the hire itself.

If you leave your employer before the hire period ends, the salary sacrifice agreement usually continues as a net deduction from your final pay, or you settle the outstanding balance directly. You will then be offered the same own it now, own it later or return choices early.

Cycle Scheme Ownership Fee Explained

The cycle scheme ownership fee, officially called the Fair Market Value or acceptable disposal value, is set out in an HMRC valuation table. Providers apply this table to the bike's original price, net of VAT and any helmet cost, to work out what you would need to pay for immediate ownership under the own it now option.

HMRC Cycle to Work valuation table (own it now)

Percentage of original price payable for immediate ownership, by bike age.

The own it later deposit works differently. Instead of following this sliding scale, it is a flat 3 to 7 per cent of the bike's original value, refunded or absorbed into the transfer once the extended use period ends. This is why own it later almost always costs less overall than paying the Fair Market Value up front, especially on a newer or higher value e-bike.

How the Cycle to Work Scheme Works

The Cycle to Work scheme is a salary sacrifice benefit set up under the 1999 Finance Act. Your employer buys the bike and any safety equipment through an approved provider, then recovers the cost from your gross salary before tax and National Insurance are applied. Depending on your income tax band, this typically saves between 28 and 47 per cent of the bike's price over the hire period.

To join, you need to be paid through PAYE, be 16 or older, and still earn at least the National Minimum Wage after the salary sacrifice deduction is taken into account. Self employed workers and sole traders are not eligible, though directors of their own limited company can often join by registering as both employer and employee. The old £1,000 spending cap was removed in 2019, so many employers now allow higher value e-bikes and cargo bikes through their scheme.

Electric Bike Eligibility Rules

To qualify as a cycle rather than a moped, an e-bike used through the scheme must meet the UK's Electrically Assisted Pedal Cycle rules: a continuous rated motor power of 250W, pedal assistance that cuts out once the bike reaches 15.5 mph, and no throttle that can propel the bike without pedalling. isinwheel electric bikes ship in this compliant configuration by default. The higher peak power and unlocked speed figures shown on some spec sheets describe short bursts of extra assistance, not the everyday rated output, so the bikes remain road legal and scheme eligible in their factory settings.

Can You Sell a Bike on Cycle to Work Scheme?

No, not while it is still under hire. You do not legally own the bike until you complete the own it now or own it later process, so selling it beforehand would mean selling property that still belongs to your employer or the scheme provider. Once ownership has genuinely transferred to you, whether immediately through own it now or later through the extended use period, the bike is yours to sell, gift or trade in like any other possession.

Best isinwheel Electric Bikes for the Cycle to Work Scheme

isinwheel electric bikes are built as pedal assist EAPCs, which makes them straightforward to run through most UK cycle to work schemes. The range below covers folding commuters through to long range and full suspension options, so there is a fit whatever your employer's spending limit allows.

Images
Model	isinwheel Dremax	isinwheel U4	isinwheel M50	isinwheel EB3
Peak Power	250W	500W	250W	250W
Battery	720Wh	375Wh	468Wh	500Wh
Max Range	93 miles	55 miles	70 miles	60 miles
Weight	65 lbs	58 lbs	61.7 lbs	59.5 lbs
Foldable	No	Yes	No	No

Browse the full isinwheel electric bike range to compare current pricing and stock, or read our companion guide on how the Cycle to Work scheme works for a full step by step walkthrough.

What happens at the end of the Cycle to Work scheme?

You will be offered three choices: own it now by paying the HMRC Fair Market Value, own it later by paying a small deposit and continuing to hire the bike at no further cost, or return the bike with no fee at all.

Who owns the bike at the end of the Cycle to Work scheme?

During the hire period, the bike belongs to your employer or the scheme provider. Ownership only passes to you once you choose own it now, which transfers it immediately, or own it later, which transfers it once the extended use period ends.

Can I sell my Cycle to Work bike?

Not while it is on hire. You need to complete the own it now or own it later process first. Once ownership has genuinely transferred, you are free to sell the bike.

Can I get a bike for someone else?

No. The scheme is tied to your own PAYE salary sacrifice agreement and is meant for your own qualifying journeys. You can, however, run more than one bike through the scheme if both genuinely support your own commute, such as a folding bike for part of the journey and a second bike for the rest.