What happens at the end of the Agreement?

What happens at the end of the 12 month Hire Agreement?

At the end of the 12 month hire period, staff will be offered the opportunity to purchase the bicycle and safety equipment outright. The University will seek to dispose of the bicycle and safety equipment at a fair market value.

HMRC has published the following ‘Valuation Table’ to be used to calculate the market value of bicycles at the end of the 12 month hire period:

 

Age of Cycle

Acceptable disposal value percentage

 

Original price less than £500

Original price £500+

12 months

18%

25%

 

For example, if the original price of the cycle, excluding safety equipment which would be worn by the cyclist (such as helmets or reflective clothing) was £400, then the acceptable market value at 12 months will be £72 (£400 x 18%).