Here’s the contents of their email:
As your hire period is nearly finished, we are contacting you to let you know what happens next.
You have been hiring the bicycle from blahblah Ltd for the past 12 and blahblah Ltd has agreed to transfer ownership of the bicycle to Cyclescheme once you have completed your hire period. We have also agreed with your employer to offer you our own convenient End of Hire process.
As you signed a hire agreement, with rental payments taken out of your gross salary, you have made a saving in tax and National Insurance (NI). In order to preserve these tax and NI savings and take ownership of the bicycle, a payment is required equivalent to the market value of the bicycle in line with HMRC’s valuation table. The valuation table can be found here.
We will shortly be in touch to offer you the following 3 options.
1. Cyclescheme’s Extended Use Agreement (EUA)
Pay a small, one-off, refundable deposit (3% or 7% of the equipment value) and continue to use the bicycle for an extended period of up to 36 months. There are no monthly rental payments during this period and you can participate in the scheme again if you wish.
At the end of this period, if you do not wish to keep the bicycle, we will refund the deposit in full. Cyclescheme may at its discretion, offer ownership of the bicycle to you at this point, and no further action or payment will be required if you wish to keep the bicycle.
This is Cyclescheme’s recommended option as this maximises the savings you have made and allows you to participate again. Please view our process video explaining this here.
2. Alternatively, you can take ownership of the bicycle for a much higher valuation.
3. Return the bicycle to us at your own cost.