What happens at the end of the hire period
If you’re wondering what happens at the end of the Cycle to Work Scheme, you’re not alone. It’s one of the most common questions we receive.
The good news is that you don’t have to hand your bike back when your initial hire period ends. Instead, Green Commute Initiative follows HMRC guidance to help you continue using your bike while protecting the tax savings you’ve received through the scheme.
For most employees, the process is simple, and nothing changes day to day – you keep riding your bike just as you always have.
What is the Cycle to Work hire period?
When you join the Green Commute Initiative Cycle to Work Scheme, you hire the bike from GCI.
During this initial hire period:
- Green Commute Initiative owns the bike.
- You have full use of the bike for commuting and qualifying journeys.
- Your salary sacrifice payments are made through your employer.
- You benefit from Income Tax and National Insurance savings, helping you save 28–47% on the cost of your bike and eligible accessories.
Once this hire period comes to an end, the next stage of the process begins.
What happens when the hire period ends?
When your Hire Agreement finishes, Green Commute Initiative will normally offer you a free-of-charge Extended Loan agreement.
This means:
- You keep using your bike.
- There are no additional hire charges.
- Nothing changes in your day-to-day use of the bike.
- Green Commute Initiative continues to own the bike until ownership can transfer in line with HMRC guidance.
For most people, the transition is seamless as you simply continue enjoying your bike as before.
Why doesn’t ownership transfer immediately?
The Cycle to Work Scheme is designed to provide tax savings which means all providers must follow HMRC rules.
If ownership of the bike transfers too soon, HMRC considers the bike to still have a market value. This could create a Benefit-in-Kind tax charge, meaning you may have additional tax to pay.
By offering an extended free loan, Green Commute Initiative helps you avoid this unnecessary tax while allowing you to continue using your bike without interruption
Do I have to make a final payment?
Many people search for a Cycle to Work Scheme final payment, but the answer depends on your scheme provider.
At Green Commute Initiative, we don’t charge ownership fees. Instead, we offer a free-of-charge Extended Loan Agreement before ownership is transferred.
This approach keeps the process straightforward while helping you retain the tax advantages of the scheme.
When do I own my scheme bike?
HMRC considers bikes to retain a value for a period after the Hire Agreement ends.
For bikes with an original value over £500, this period is generally six years.
Once this period has passed, Green Commute Initiative appoints you as its agent to dispose of the bicycle on our behalf. In practice, this means the bike is yours to do with as you wish.
Throughout this time, you’ll continue using the bike exactly as you have since you first collected it.

Can I continue using my bike?
Absolutely; Your Extended Loan Agreement allows you to continue enjoying all the benefits of your bike, including:
- Cycling to work
- Leisure rides
- Fitness and wellbeing
- Everyday journeys
- Reducing your reliance on the car
From your perspective, very little changes after the initial hire period ends.
Why choose Green Commute Initiative?
We believe the Cycle to Work Scheme should be simple from beginning to end.
That’s why we offer:
- No ownership fees
- Free extended loan agreements
- Savings of 28–47% on bikes and accessories
- Access to over 1,300 registered bike retailers across the UK
- FCA authorised provider
- Friendly UK-based support whenever you need it
Whether you’re applying for your first bike or approaching the end of your hire period, we’re here to make the process as straightforward as possible.
Ready for your next bike?
If you’re thinking about joining the Cycle to Work Scheme, Green Commute Initiative makes it easy to save on a new bike or ebike while enjoying a straightforward process from application through to the end of your agreement.
Explore our helpful guides to get started:
- How the Cycle to Work Scheme Works
- Employees
- Savings Calculator
- Find a Registered Bike Shop
- Ebike Cycle to Work Scheme
FAQs
Do I keep my bike at the end of the Cycle to Work Scheme?
Yes. After your initial hire period, you’ll usually be offered a free-of-charge Extended Loan Agreement, allowing you to continue using your bike while ownership transfers in accordance with HMRC guidance.
Why is there an Extended Loan Agreement?
The extended loan helps avoid a Benefit-in-Kind tax charge that could arise if ownership transferred too early.
Will I have to pay anything else?
Green Commute Initiative does not charge ownership fees. Your agreement simply moves into the extended loan stage before ownership can transfer in line with HMRC rules.
Why is there an Extended Loan Agreement?
The extended loan helps avoid a Benefit-in-Kind tax charge that could arise if ownership transferred too early.
Can I sell my bike?
Once ownership has transferred, the bike is yours to keep, sell or use as you wish.
What happens if I leave my employer?
If your employment changes during your agreement, the options available will depend on your employer’s policy and where you are in your hire agreement. Please contact our team and we’ll explain the options available to you.
Can I apply for another bike?
Yes. Once you’ve completed your current agreement, you may be able to apply for another bike through your employer’s Cycle to Work Scheme, subject to your employer’s policy.

