Oh plus VAT ….

Just had the confirmation from my HR dept …

Dear *********

I'm pleased to confirm that your last monthly 'Cycle to Work' hire deduction has now been made in your August salary. In order for the bike's ownership to be transferred to you, a small transfer value of 3% will be applied to your September salary which will be £21.96 VAT. This was explained in your original hire agreement – please see below.

At the end of the term, you must return the selection (bike) to an address to be designated by the company. Although no guarantee can be given regarding this, you may be offered by the company the opportunity at the end of the Term to purchase the selection (bike) at "Fair Market Value". payment of "Fair Market value" for the selection be from net pay and is subject to VAT.

HMRC recommends a transfer value of 3-5%. xxxxxxxx has applied the minimum amount.

Please contact the Rewards Team by 5th September should you wish to return your bike otherwise the deduction will be made and the ownership transferred to you.

OK, let me think …
NO … I'm keeping it …
Now …
What to get next ?

They asked me what mine was worth at the end, so that they could work out a final payment – carbon depreciates horribly quickly I've always found. We settled at £15, VAT inc.

a number of agreements would actually charge you a handling fee (equivalent sum to the final value fee) in the unlikely event you did return the bike.