Throughout the hire period, the bikes – and any other equipment – are still the property of the company. HMRC guidance states that for a program to be tax compliant, a company cannot simply hand over everything to the employees when the hire period ends. They must transfer ownership through certain methods: P11D or Managed Extended Hire.
For all information about transfer of ownership and how to report this to HMRC, please follow the links below:
- HMRC Cycle to Work guidance document
- HMRC: transfer of bicycle to employee
- Transfer of Ownership: Managed Extended Hire (SmartPay)
Please note, Reward Gateway does not provide tax advice and the above information is publicly available through the relevant HMRC channels.