Short answer
we found no licence in the UK that is specific to hiring out bikes, and no general business licence either. On 7 October 2026 a search of the GOV.UK licence finder for "bicycle hire" returned no licence for hiring out bicycles, and a search for "cycle" returned none. The finder itself warns that it "may not include all the licences you need".
That is not the same as "no rules". Where you hire from, who works for you, what you hand over and how you take bookings all carry legal duties. Some of them need permission from a council, a landowner or a park. Leading guided rides and selling holidays add a few more.
This guide separates what the law requires from what councils, landlords and insurers ask for, tells you which official source to check for each, and says plainly where we could not find an official answer. It covers hiring out bikes, running bike tours, whether a cycling tour counts as a package holiday, and the paperwork you keep when a bike goes out and comes back.
Three honest notes before we start.
First, we build RideLoop, which includes booking software for bike hire and tours, so we are not a neutral party.
We describe it in one clearly marked part of this guide (section 6) and in the closing links. We also hire out bikes ourselves alongside our shop, which is why we wanted to get this right.
Jump to that section →Second, we are not lawyers, and this is not legal advice. We read the legislation and official guidance, link them, and mark each claim that rests on our own reading. The law differs between England, Wales, Scotland and Northern Ireland, and, for some questions, between councils. Where it does, we say so.
Third, an official page that is silent is not the same as permission. On several questions, such as whether hire counts as "street trading" in England outside London, we found no official statement either way. We say that, and tell you to ask the body that decides.
The short version
In this guide
01Is there a licence to hire out bikes?
No licence specific to bike hire. The GOV.UK licence finder lists hundreds of licences across the UK. We searched it on 7 October 2026. A search for "bicycle hire" returned entries such as boat hire (Scotland), private hire vehicles and PSV operator licences, none for bicycles. A search for "cycle" returned no licences. We did not test every other keyword, and the finder warns that it may be incomplete, so it is a good first check but not proof.
No general business licence. Neither GOV.UK nor business.gov.uk describes one. They say that depending on what you do you may need licences or permits, and point you to the licence finder and to your local council. GOV.UK’s guidance on providing services says you "must check what authorisations and licences you will need to obtain".
So what does apply? Five things, covered in the sections below:
- 1Where you trade. Street trading rules, park and forest permissions, landowner agreement (section 2).
- 2Your premises. Planning use, business rates, fire safety (section 3).
- 3Insurance and employing people (section 4).
- 4What you hand over. Consumer law, bike condition, e-bike rules, product safety (section 5).
- 5How you take bookings and money. Price transparency, waivers, data protection (section 6).
If you also lead guided rides or sell holidays, sections 7 and 8 add to the list.
Other licences can still be triggered by what you add. A van that carries paying passengers may need a PSV or private hire licence (section 7). A café, a music system or a shop selling food may bring their own rules. We have not covered those here.
02Where you hire from decides what you need
This is the question that catches most new hire businesses. Our own bike rental guide covers the practical side in where you operate, and who needs to say yes. Here is the legal picture, as far as the primary sources let us state it.
Scroll sideways to see the whole table →
| If you hire from... | The question to ask | Who decides |
|---|---|---|
| Your own shop or unit | Does hire fit the permitted use of the building? (section 3) | Local planning authority, your landlord |
| Inside someone else’s site (hotel, campsite, holiday park) | Who holds keys, who insures what, fee or revenue share? Put it in writing. | The site owner |
| A street, footway, beach, seafront or any area the public can enter free | Is this street trading, and has the council made it a controlled street? | The council |
| A park, forest or other managed land | Do you need written permission to trade, hire out or guide? | The land manager |
| Private land | Do you have the landowner’s written permission? | The landowner |
| A trail or route | Who owns and manages it, and what do they say about commercial use? | The land manager |
Street trading: the rule is not the same everywhere
Street trading licences are a local council matter, and the legislation differs by nation. Do not assume that "hire = street trading = licence".
London. The London Local Authorities Act 1990 applies in London boroughs that participate in the scheme. As amended, it defines street trading to include "the supplying of or offering to supply any service, in a street for gain or reward", and "street" reaches areas within 7 metres of a road or footway that the public can enter free. That is wider than the 1982 Act. Whether a bike hire counts is our inference, not an official statement. There is an exemption for services on private land next to a shop, as part of that shop’s business, while it is open. The City of London and Westminster have their own local legislation, which we did not check.
Scotland. A street trader’s licence is required under section 39 of the Civic Government (Scotland) Act 1982. "Street trading" means doing certain things in a public place, including "offering to carry out or carrying out for money or money’s worth any service, to any person in the public place", and includes doing them from a vehicle, kiosk or moveable stall, except where it is done "in conjunction with or as part of a retail business being carried on in premises abutting the public place". Whether hire is caught is our reading of "any service", and we found no official statement either way.
Northern Ireland. Under the Street Trading Act (Northern Ireland) 2001, street trading means selling any article or thing, or supplying a service, in a street, and a council licence is needed. One council we checked charged £215 for a licence and £58 for a temporary one, but fees are set locally.
Councils have read this differently. In 2018, trade press reported Brent saying it could use its London Local Authorities Act 1990 powers to manage dockless bike hire. The City of London, applying its own 1987 Act, concluded that app-based hire with nobody trading in the street was more in the nature of a service and not street trading. In 2019 Lambeth, under the same 1990 Act as Brent, was reported as taking legal advice that its powers could not be used. Those were app-based dockless schemes, not a shop or a pop-up, but they show that your council may read the wording differently from the next one.
Parks, forests and managed land
None of these is a single rule. Check the manager’s own page and ask.
- Royal Parks (London). The Royal Parks and Other Open Spaces Regulations 1997, regulation 4, requires the Secretary of State’s written permission before anyone in a Royal Park may "carry on any trade or business in a Park, offer anything for sale or hire". The Royal Parks’ cycling page says cycle tour groups are licensed within the central parks.
- Forestry England. Its permissions page says that to "run a business or commercial (charged for) activities" on its land you must first apply for permission, and lists "coaching or guiding businesses" among the examples. It asks for your risk assessment and public liability insurance and suggests applying at least eight weeks ahead. It does not name cycle hire. Its 1982 byelaws also restrict letting out vehicles for hire on its land without written authority, but the byelaws do not define "vehicle" or mention bicycles, so whether a bicycle counts is an inference, and we have not verified their current status.
- Natural Resources Wales. Its "apply to use land we manage" service covers things such as horse riding, filming and holding an event. It does not name cycle hire or guiding. Most applications ask for proof of public liability insurance of at least £5 million, and can take up to 12 weeks (filming at least 3 weeks).
- National Trust. Its page for outdoor experience providers says "you should always seek the landowner’s permission", lists walk, run and biking experiences, and asks for public liability and employers’ liability insurance. It advises getting in touch well ahead, in some cases nine months.
- National Park authorities. The ones we checked (Peak District, Dartmoor, South Downs, Yorkshire Dales, Bannau Brycheiniog) publish guidance for events. Only Dartmoor gives numbers: it asks to be contacted early about events with more than 50 people on foot or 30 cyclists or horse riders. None of the pages we read mentions cycle hire. Bannau Brycheiniog notes that on open access land the landowner’s permission is needed for "activities which are organised or undertaken for any commercial purpose", which comes from the Countryside and Rights of Way Act 2000 (Schedule 2, paragraph 1(t)) and applies on open access land in England and Wales. Silence on hire is not permission. Landowners inside a National Park still decide for their land.
- Council seafront and park concessions. Many councils let concessions by tender. Adur and Worthing’s seasonal concessions page lists "cycles" among its leisure categories, while Lyme Regis’s seafront concessions policy does not mention bike hire. Ask your council’s property or leisure team.
Scotland is different on access. Under the Land Reform (Scotland) Act 2003, access rights can be exercised for "carrying on, commercially or for profit, an activity which the person exercising the right could carry on otherwise than commercially or for profit". The National Access Forum’s guidance treats guided activities and tours as commercial activities that take place under access rights, and puts mountain bike hire in a different group, "related services which indirectly depend on access rights". Access rights are about being on the land. On our reading, they do not give you a pitch, a stall or someone’s car park.
Rights of way and bikes
In England and Wales, section 30 of the Countryside Act 1968 gives "any member of the public" the right to ride a bicycle on a bridleway, subject to local orders and byelaws, and cyclists must give way to pedestrians and horse riders. GOV.UK lists footpaths as for walking, not cycling. We found no primary source on commercial tours specifically using rights of way. If you send paying groups along a route, check who owns and manages it.
03Your premises: planning, rates and fire
Planning (Wales, Scotland, Northern Ireland). The planning orders in these nations differ from England’s. In the versions we read, the Scottish and Northern Ireland shop classes, and Wales’s version of the 1987 Order, still carry the express wording about hiring out domestic or personal goods. Check the current text with your planning authority. Local Article 4 directions can also restrict changes of use.
Business rates (England and Wales). GOV.UK says you will probably have to pay business rates if you use a building or part of a building for non-domestic purposes. Your council can tell you the rateable value of a unit before you take it.
Fire safety. In England and Wales the Regulatory Reform (Fire Safety) Order 2005 requires the "responsible person" for non-domestic premises to carry out a suitable and sufficient fire risk assessment. If you charge e-bike batteries, see section 5. Scotland and Northern Ireland have their own fire safety legislation, which we did not check.
04Insurance: who must have what
Employers’ liability insurance is compulsory if you employ people. In Great Britain the Employers’ Liability (Compulsory Insurance) Act 1969 requires an employer carrying on a business to insure and maintain insurance. The Regulations set the minimum at £5 million for claims relating to any one occurrence. GOV.UK and the HSE state fines of up to £2,500 a day for being uninsured and up to £1,000 for not displaying the certificate or producing it for inspection.
- Who counts as an employee. The Act uses "an individual who has entered into or works under a contract of service or apprenticeship". Seasonal and part-time staff on contracts of service are employees. Freelancers are a fact test, not a label. The HSE lists factors such as whether they supply their own equipment, are in business on their own account and can send a substitute. Volunteers are case by case. The HSE says that in some cases you will not need additional employers’ liability insurance for volunteers, and that insurers will usually cover them under an existing employers’ liability policy.
- Northern Ireland has its own 1972 Order and 1999 Regulations. The £5 million minimum is the same, but we did not check the exemptions or penalties there.
Public liability insurance is generally voluntary. The HSE’s guidance describes public liability insurance as generally voluntary, in contrast with employers’ liability. It covers claims by members of the public or other businesses. We found no GOV.UK page stating outright that it is optional. In practice, landlords, councils and land managers ask for it. Natural Resources Wales asks for proof of at least £5 million. Ask your insurer for a policy that names hire, any guiding and any e-bikes.
Duties to non-employees apply whether or not you insure. Section 3 of the Health and Safety at Work etc. Act 1974 requires an employer to conduct their undertaking so that people not in their employment "are not thereby exposed to risks to their health or safety", so far as is reasonably practicable. The Management of Health and Safety at Work Regulations 1999 require an assessment of risks to those people too. You must record the significant findings once you employ five or more people. Self-employed people who run an undertaking of a prescribed description have the same duty under section 3(2), and an equivalent risk-assessment duty under regulation 3(2) of the 1999 Regulations, so a sole trader with no staff is not automatically outside them. Check the HSE’s guidance on whether your activity is prescribed. (Northern Ireland has its own equivalents.)
Motor insurance is compulsory for any motor vehicle used on a road or other public place, under section 143 of the Road Traffic Act 1988 (Great Britain; Northern Ireland has its own law). That includes a support or delivery van.
Cover for the bikes themselves is a commercial choice, not a legal one. Ask your insurer about theft, damage and cover while a bike is out on hire. Our insurance section in the bike rental guide has a longer list of questions.
05The bikes themselves: safety, e-bikes and consumer law
Consumer law: what a hired bike must be
Hire of goods is covered by Chapter 2 of the Consumer Rights Act 2015. A contract is "for the hire of goods" if under it "the trader gives or agrees to give the consumer possession of the goods with the right to use them... for a period determined in accordance with the contract" (section 6). Every contract to supply goods is treated as including terms that:
- the quality of the goods is satisfactory (section 9), taking in fitness for usual purposes, appearance and finish, freedom from minor defects, safety and durability;
- they are reasonably fit for a purpose the customer made known (section 10);
- they match the description (section 11).
Under section 31, a term that would exclude or restrict your liability for these is not binding on the consumer. The service side, the briefing, the fit and the handover, must be performed "with reasonable care and skill" (section 49), and what you say or write about the service can become a term of the contract if the customer took it into account (section 50). You cannot exclude liability for death or personal injury resulting from negligence by a term in a consumer contract or notice (section 65), and a person is not taken to have voluntarily accepted a risk merely by agreeing to or knowing about such a term. The Act applies across the UK.
Product safety law
In Great Britain the General Product Safety Regulations 2005 apply to consumer products "supplied or made available... in the course of a commercial activity", including a product "supplied or made available to consumers for their own use in the context of providing a service". GOV.UK gives gym equipment as an example. We found no official page that names bike hire, but a hire fleet fits that wording. Northern Ireland applies the EU’s General Product Safety Regulation 2023/988 from 13 December 2024.
Separately, the Pedal Bicycles (Safety) Regulations 2010 say a person "must not supply a bicycle" unless it meets listed requirements, including a bell and correctly arranged brake levers. They are made under the Consumer Protection Act 1987, and section 46(1)(a) of that Act says supplying goods includes "hiring out" them, so on the face of the Act hiring out a bicycle is a supply. Regulation 3(1)(b) exempts a bicycle that "has been previously supplied and used (other than for the purpose of testing) on or off road". We found no official guidance on how that applies to the first hire of a bike you bought new, so buy bikes that meet the Regulations and keep the receipts.
Roadworthiness: what the law says about lights, brakes and bells
- Lights. Under the Road Vehicles Lighting Regulations 1989, a pedal cycle used on a road between sunset and sunrise, or in seriously reduced visibility, must have a white front light, a red rear light, a red rear reflector and amber pedal reflectors (the Highway Code adds "if manufactured after 1/10/85" for the pedal reflectors). The prohibition catches a person who uses "or cause[s] or permit[s]" the use. Whether a hire operator who lets a customer ride off without lights is "causing or permitting" the use is our reading of the wording, and we found no official statement. The sensible approach is to fit lights or tell customers to be back before dusk. The rule differs in Northern Ireland (its own regulations apply).
- Brakes. The Highway Code’s Annex 1 says "You MUST ensure your brakes are efficient". It cites the Pedal Cycles (Construction and Use) Regulations 1983, which we could not read directly.
- Bell. The Highway Code says you "should" fit one. It is not a requirement to ride.
- Helmets. Highway Code rule 59 says riders "should wear a cycle helmet". It is advice, not law, and the same is true in Northern Ireland. We found no legal duty to wear or provide one in England, Wales or Scotland.
- Pavements. Rule 64 says "You MUST NOT cycle on a pavement". Put it in your briefing.
- Age. We found no statutory minimum age for riding an ordinary pedal cycle on a road. Your own minimum age and who signs for a child are your decision.
E-bikes
In Great Britain, an electrically assisted pedal cycle is treated as an ordinary pedal cycle if it:
- has pedals that can propel it,
- has a motor with a continuous rated power of no more than 250 watts, and
- gives no assistance above 15.5 mph (25 km/h).
The rider must be 14 or over. Section 32 of the Road Traffic Act 1988 makes it an offence to drive such a cycle on a road under 14, and an offence to cause or permit it "knowing or suspecting" the rider is under 14. A bike that does not meet the rules is classed by GOV.UK as a motorcycle or moped, needing registration, tax, insurance, a licence and an approved motorcycle helmet. Northern Ireland has its own regulations with the same numeric limits. The government consulted on changing the e-bike limits and, in January 2025, said it would not continue with those proposals at this time, so the rules above stand.
Battery safety. The Department for Business and Trade’s statutory guidelines on lithium-ion battery safety for e-bikes say they "must be taken into account by businesses" when assessing whether e-bike batteries meet GPSR requirements. They are addressed to producers, importers and distributors and do not mention hire. Fire-service guidance on charging and storing e-bikes, such as the National Fire Chiefs Council’s, is guidance, not law. One fire and rescue service’s premises guidance says that where e-bikes are a recognised risk the fire risk assessment should refer to them, and that they should not be stored or charged on escape routes. A voluntary code of practice for lithium-ion batteries in e-bikes (PAS 7250) was still in draft in May 2026 when we last saw it.
06Checking bikes out: the paperwork, and bike rental check out software
A hire is a contract, a handover and a return. Most disputes start at one of the two ends, so the check-out and the check-in are where you protect yourself. Here is what the law and good practice point to.
What to record when a bike goes out
- Who has it. Name and contact details, and the lead rider if it is a group. Collect what you need and no more.
- Which bike. The individual bike, not just the model, so a fault or a loss can be traced to one frame.
- What condition it was in. Existing marks and damage noted at handover, ideally with a photo, and the checks you made: tyres, brakes, quick-release levers and bolts, saddle and bar height, chain.
- What went with it. Helmet, lock, lights, pump, e-bike battery and charger.
- What the customer agreed to. Your terms and any waiver, with the time and date.
- What you told them. A short briefing: brakes, gears, e-bike assistance, no riding on the pavement, lights if it will be dark, the return time and who to call.
- The deposit. What was held, on what, and when it is released.
- Return. The time, the condition and any difference from the handover.
Prices, fees and cancellation
- Show the total price. The Digital Markets, Competition and Consumers Act 2024 treats the total price as including "any fees, taxes, charges or other payments that the consumer will necessarily incur". The CMA’s summary says it is illegal to hide additional fees until later in the purchase process, and gives a booking fee as an example of a mandatory charge. If a damage waiver or booking fee is compulsory, it belongs in the headline price. These rules apply to practices from 6 April 2025. The CMA’s price transparency guidance (CMA209) says deposits or card pre-authorisations that are automatically refunded if not called upon are not "mandatory charges" and need not be in the total price. It does not mention cash deposits, so state any deposit clearly before booking.
- Do not surcharge cards. The surcharge ban covers consumer debit and credit cards and similar payment methods. A booking or admin fee is allowed only if it is the same whatever the payment method, according to Trading Standards’ Business Companion.
- The 14-day cancellation right mostly does not apply to dated hires. Under the Consumer Contracts Regulations 2013, a consumer who books at a distance can normally cancel within 14 days. But regulation 28(1)(h) excludes "vehicle rental services... or services related to leisure activities, if the contract provides for a specific date or period of performance". A bike hire booked for a particular day or period very probably fits. We found no official statement that a bicycle is a "vehicle" for this purpose, so we say "very probably", and an undated gift voucher is a different case. Whatever the law allows, state your own cancellation and weather terms clearly. Our rain policy and weather guarantee guides cover that side.
- Reviews. Fake reviews and concealing that a review was incentivised are banned from 6 April 2025. If you ask guests for reviews, do not submit or commission fake ones, and do not hide that a review was incentivised.
Waivers and deposits
A signed waiver is a useful record. It shows the customer read your rules, accepted the condition of the bike and confirmed they are fit to ride. But a trader cannot exclude liability for death or personal injury caused by negligence by a term in a consumer contract or notice (Consumer Rights Act 2015, section 65), and for business-to-business hires section 2(1) of the Unfair Contract Terms Act 1977 (England, Wales and Northern Ireland) and section 16 (Scotland) say the same about death and personal injury. Other terms must be fair, or satisfy reasonableness. Read our guide to waivers for what they can and cannot do, and our guide to deposits for why a card hold usually beats taking money.
Children and young riders
We found no official business guidance on a child’s capacity to contract for hire, to pay a deposit or to sign a waiver. In England and Wales, full age is 18 under the Family Law Reform Act 1969. In Scotland, a person under 16 has legal capacity for transactions of a kind commonly entered into by persons of their age and circumstances, on terms that are not unreasonable. For a hire to under-18s, the practical approach is to have a parent or guardian make the booking and sign. Remember the e-bike rule: a rider must be 14 or over, and it is an offence to cause or permit someone to ride one on a road if you know or suspect they are under 14 (section 5).
Data you collect at check-out
- The ICO fee. Organisations that process personal data usually pay an annual data protection fee unless exempt. The ICO’s tier 1 fee, for organisations with a turnover of up to £632,000 or no more than 10 staff, was £52 on its page dated September 2025, with a £5 discount for direct debit. The ICO says any company using CCTV for crime prevention must pay regardless of its other operations. Check the ICO’s current fee page and self-assessment tool.
- Health information. Information about a rider’s health or injuries is special category data. You need a lawful basis under Article 6 of the UK GDPR and a condition under Article 9, and the ICO says explicit consent must be "a clear statement" that specifically refers to the processing that needs it. If a rider form does not need health details, do not ask for them. Our buyer’s guide has a section on data and security.
What to look for in bike rental check out software
Whatever tool you use, whether a spreadsheet or a booking system, test it against the check-out list above. These are the questions that matter.
- Does it track each bike individually, not just a count per model?
- Can you record the condition at handover and at return, and tie a note to a booking?
- Does it capture terms and waivers with a date and time, and keep them?
- Does it hold the deposit on the card and release it, rather than taking and refunding cash?
- Does it stop double bookings across counter, online and group bookings?
- Can you verify ID at pickup when you choose to?
- Do staff have roles, so a new seasonal worker cannot change prices or delete a booking, and is there an audit log?
- Can you export your bookings and customers, and leave without a fee?
- What happens if the internet drops at the counter?
For a longer list with a scorecard and a trial script, use our UK buyer’s guide to bike rental software.
How RideLoop handles it
How RideLoop handles it
We build RideLoop, so weigh this accordingly. This is what we can state today.
- Each bike is tracked individually, with barcode or QR scanning at pickup and return, on a calendar that does not double-book.
- Optional ID verification at pickup, and digital waivers with an audit trail.
- A security deposit is a hold on the card, released after a clean return or claimed against damage.
- Five staff roles and a full account audit log.
- Every payment settles to your own Stripe account. Our commission is never charged on deposits or tax.
- Bookings and customers export as CSV, with no contract and no exit fee.
What we don’t do yet
Scanning at the counter needs an internet connection, and we have no accounting integration. You can see how RideLoop handles bike hire or book a walkthrough.
07Do you need a licence to run bike tours?
No licence or qualification is required by law to lead a guided bike ride in the UK. We checked HSE, GOV.UK and the legislation and found none, apart from the adventure activities licence below. We also found no statutory registration for tourist guides in any UK nation. Awards from British Cycling, Cycling UK or Mountain Training are voluntary. They are, though, what insurers and land managers tend to expect, as our guide to starting a cycling tour business explains.
The adventure activities licence: under-18s on remote ground
The Adventure Activities Licensing Regulations 2004 apply in England, Wales and Scotland. The HSE says that "anyone who provides, in return for payment, adventure activities within the scope of the Licensing Regulations to young people under 18, is required by law to hold a licence." Cycling is within scope only as part of trekking, which the Regulations define as journeying "on foot, horse or pedal cycle or ski-ing" over terrain that:
- is moorland or more than 600 metres above sea level, and
- is more than 30 minutes’ travelling time from an accessible road or refuge.
The HSE lists off-road cycling among its trekking examples. A licence is needed only if all of these apply: the ride is guided or led, it is charged for, it includes someone under 18, and it is on that kind of terrain. The Activity Centres (Young Persons’ Safety) Act 1995 puts facilities provided only for people aged 18 or over, and those with no element of "instruction or leadership", outside the scheme. So plain bike hire is outside it, an adult-only tour is outside it, and on our reading a guided family ride on a waymarked woodland trail is outside it. Exemptions include young people accompanied by a parent or guardian, and activities run under another provider’s licence. The scheme is for Great Britain. We found no Northern Ireland equivalent but did not search exhaustively. GOV.UK’s licence finder listed the licence at £715 when we looked.
Other duties when you lead rides
- Risk assessment. You must assess risks to people who are not your employees, and record your findings once you employ five or more. See section 4.
- First aid. The HSE says the first-aid Regulations "do not place a legal duty on employers to make first-aid provision for non-employees", but it "strongly recommends" that they are included in your assessment. Insurers and land managers often ask for it. See our tour guide.
- Working with children. There is no blanket legal duty to run a DBS check. Whether a role is regulated activity depends on what it involves, how often and with whom, and the DBS says the recruiting organisation decides whether a check is needed. GOV.UK guidance says the supervision exemption was removed from the definition of regulated activity with children on 1 September 2026, for paid staff and volunteers, so someone who teaches, trains, instructs, cares for or supervises children frequently, or on more than three days in any 30-day period, or overnight, may now need an enhanced check even if supervised. The GOV.UK pages we read disagree on which nations it covers (one is marked England only, others refer to England, Wales and Northern Ireland), so check the page for your nation. Northern Ireland uses AccessNI, and we did not check Scotland’s PVG scheme. Read the DBS guidance for your nation before you recruit.
- Riding in groups. Highway Code rule 66 says you can ride two abreast and that it can be safer to, but you should allow drivers to overtake when it is safe. We found no statutory group-size limit for road rides, and we did not search local byelaws or traffic orders. Land managers set their own thresholds for events.
- Where you ride. Bridleways are open to bikes under the 1968 Act in England and Wales. Land off rights of way needs the landowner’s permission. Managed land may need a permit, as in section 2.
- Support vehicles. In Great Britain, a vehicle that can carry nine or more passengers for hire or reward needs a PSV operator licence. A smaller vehicle needs one if passengers pay separate fares in the course of a passenger-carrying business. A smaller vehicle hired as a whole to one group is generally a private hire matter for the licensing authority (Transport for London in London). A goods vehicle operator licence is needed in Great Britain above 3,500 kg gross plated weight (a motor vehicle and a plated trailer count together) for goods carried for hire or reward or in connection with your business. Northern Ireland has its own rules. A standard van and a bike trailer is usually below it, but check the plated weights and what you carry.
08Do cycling tours count as package holidays?
It depends on what you combine and for how long. The Package Travel and Linked Travel Arrangements Regulations 2018 apply across the UK. A package is "a combination of at least two different types of travel services for the purpose of the same trip or holiday". The four types are carriage of passengers, accommodation, rental of cars and certain motor vehicles, and "any other tourist service". The GOV.UK guidance says "other tourist service" includes guided tours and the rental of sports equipment.
The table below is our reading of the Regulations. The GOV.UK guidance (July 2022) has no examples about bikes or tours, so treat it as a starting point for a conversation with a solicitor.
Scroll sideways to see the whole table →
| What you sell | Is it a package? |
|---|---|
| A single-day guided ride, nothing else | No. One type of travel service, and the Regulations do not apply to a package "covering a period of less than 24 hours, unless overnight accommodation is included" (regulation 3(2)(a)). |
| A day tour plus bike hire | Probably not. On the wording both are "other tourist services", which is one type, not two. The guidance does not address this combination. Take advice if you sell them as a bundle. |
| Several day tours on different days, no accommodation | Probably not , for the same reason. The guidance is silent. |
| A guided tour plus accommodation (including a night in a partner hotel) | Very probably yes. Accommodation plus another tourist service is a package if that service is advertised as, or is, an essential feature, or is a significant share of the value. The guidance gives 25% of the value as a rule of thumb. On a cycling trip the cycling is almost always the essential feature. The 24-hour exclusion does not help once there is an overnight stay. |
| Bike hire plus accommodation as one cycling holiday (self-guided) | Assume yes. Rental of sports equipment is an "other tourist service". See our holiday company guide. |
| A tour plus a flight | A flight is carriage of passengers, so the guided tour is the other service. Under regulation 2(6) it is a package if the tour is advertised as, or is, an essential feature of the trip, or is a significant share of its value, which for a cycling trip is usually the case. A flight-inclusive package needs an ATOL from the CAA, unless you act as an agent of an ATOL holder. |
How services are combined also matters. The guidance lists six ways a package arises, including a single contract, a single booking process, an inclusive or total price, being advertised as a "package", or linked online booking within 24 hours with the traveller’s data passed on. A tour or bike hire bought after the stay has started is not part of a package (regulation 2(6)(b)). The "probably not" rows above change if you add carriage of passengers, such as a ferry, a train or a van transfer sold as part of the trip (though the guidance treats minor transport that is intrinsically part of a guided tour as part of that service), and the 24-hour exclusion only helps while the trip stays under 24 hours.
If it is a package, you are the organiser, with duties on information, liability, assistance and insolvency protection. An organiser must provide effective security to cover refunding all payments travellers make (regulation 19(1)), and the GOV.UK guidance expects it to cover the period from the first down payment, so have it in place before taking deposits. Failing to give the required information or contract, or to have insolvency protection, is a criminal offence punishable by a fine, enforced by Trading Standards in Great Britain and by the Department for the Economy in Northern Ireland, and the CAA is also an enforcement authority. Everything about that is in our guide to running a cycling holiday company, and the short version for tour operators is in our tour business guide.
09A checklist by type of business
This is a map of what to check, not a list of what you need. Every row ends with a question for the body that decides.
Scroll sideways to see the whole table →
| If you... | Check |
|---|---|
| Hire bikes from your own shop or unit | Planning use with the council. Business rates. Fire risk assessment. Employers’ liability if you employ anyone. Insurance for the bikes. Terms, waiver, deposit hold. |
| Hire inside a hotel, campsite or holiday park | A written agreement with the site: who holds keys, whose insurance covers what, fee or revenue share. |
| Hire from a pop-up, stall, van or seafront | The council’s street trading position for that exact spot. Written permission from any landowner or concession holder. |
| Hire in a park, forest or on National Trust land | The land manager’s permission, and the insurance cover they ask for. |
| Hire e-bikes | The 250 W, 15.5 mph and pedal rules. The 14-year-old minimum. Battery charging and storage in your fire risk assessment. |
| Hire to under-18s | Who signs. The e-bike age rule. A policy on helmets and supervision. |
| Lead guided day rides | Landowner or manager permission. Insurance that names guiding. Risk assessment. First aid. The adventure activities licence if you take under-18s on remote moorland or high ground. |
| Carry riders or bikes in a van | The vehicle’s seat count and plated weight. PSV, private hire or goods vehicle rules. Motor insurance. |
| Sell tours with accommodation or bike hire plus accommodation | Package travel rules, insolvency protection, standard information forms, VAT scheme, and the 2027 change. |
10Who to ask, in the order to ask them
- 1
Your local council’s licensing team. Street trading, and anything the council licenses locally.
- 2
Your local planning authority. Whether hire fits the permitted use of a unit, before you sign a lease.
- 3
The landowner or land manager. In writing, with the insurance they require.
- 4
Your insurer or broker. Describe every activity: hire, guiding, e-bikes, under-18s, vans. Ask what each policy excludes.
- 5
Trading Standards. Consumer law, pricing, terms and package travel. The Business Companion guidance is free.
- 6
The HSE. Risk assessment, employers’ liability and the adventure activities licence.
- 7
The ICO’s self-assessment tool. Your data protection fee.
- 8
A solicitor and an accountant who know travel and hire, before you advertise a package.
Write down who you asked, when, and what they said. If a council later disagrees, a dated email is your best evidence.
11Mistakes worth avoiding
- 1Assuming "no licence" means "no rules". A pop-up on a seafront or a hire base in a park needs someone’s agreement.
- 2Treating street trading as the same everywhere. The definitions differ by nation, and councils read them differently.
- 3Skipping the lease check. Find out whether hire fits the permitted use before you sign.
- 4Relying on a waiver. It cannot remove liability for death or personal injury from negligence.
- 5Hiding fees. Compulsory fees belong in the headline price.
- 6Forgetting seasonal staff. If they are employees, employers’ liability applies.
- 7Hiring e-bikes to under-14s. It is an offence to knowingly let them ride.
- 8Leaving batteries charging on an escape route. Put charging in your fire risk assessment.
- 9Selling an overnight tour without checking package travel. Accommodation plus guiding or bike hire very probably is one.
- 10Treating the 2027 change as someone else’s problem. If you sell tours with partner accommodation, check how it applies to your checkout.
- 11Taking advice once. The rules change. Re-check at least once a year.
12Questions people ask
Do you need a licence to hire out bikes in the UK?
We found no licence specific to hiring out bikes, and no general business licence. The GOV.UK licence finder, searched on 7 October 2026, listed none. But where you hire from can require street trading consent, a land manager’s permission or a landlord’s agreement, and you must meet the usual duties on insurance, consumer law and safety.
Do I need a licence to hire out bikes from my shop?
Not a bike hire licence, as far as we can find. You should check that hire fits the permitted use of the premises with the local planning authority, pay business rates, carry out a fire risk assessment and insure as described in section 4.
Do I need street trading consent to hire out bikes from a pop-up?
It depends on the nation, the council and the spot. In England and Wales outside London, the 1982 Act talks about selling articles and we found no official statement on hire. London, Scotland and Northern Ireland define street trading to include services. Ask the council, and keep the answer.
Do I need planning permission to start bike hire?
If you are using an existing unit, you may not, if the current use already covers hire. Class E in England does not name hire, so confirm with the planning authority before you sign.
Is public liability insurance a legal requirement?
The HSE’s guidance describes it as generally voluntary. Landlords, councils and land managers often require it, and some set a minimum of £5 million.
Do I need employers’ liability insurance for seasonal staff?
If they are your employees, yes, in Great Britain, with at least £5 million of cover. Freelancers are a fact test, and volunteers are case by case. Ask your broker.
Do you need a licence to run bike tours in the UK?
No licence or qualification is required by law to lead a guided ride. The exception is the HSE adventure activities licence for paid, led rides with under-18s on moorland or terrain more than 600 metres above sea level that is more than 30 minutes from an accessible road or refuge. You may need permission to guide on land others manage, and package travel rules apply if you add accommodation.
Do cycling tours count as package holidays?
A single-day tour with no overnight stay does not. A tour together with accommodation very probably does, and so does bike hire together with accommodation sold as a holiday. A package organiser must have insolvency protection covering the payments travellers make, and should have it in place before taking deposits.
Is a self-guided cycling trip a package holiday?
Often, yes. Rental of sports equipment counts as an "other tourist service", so accommodation and bike hire sold together as one cycling holiday should be treated as a package. See our holiday company guide.
Do I have to provide helmets?
We found no legal requirement to wear or provide a cycle helmet in England, Wales or Scotland, and the Highway Code says riders "should" wear one. Many operators offer them, and your insurer may ask.
Can I hire an e-bike to a 13-year-old?
No. The rider of an electrically assisted pedal cycle must be 14 or over, and it is an offence to cause or permit a younger person to ride one on a road if you know or suspect they are under 14.
Is a waiver legally binding?
It is a useful record, but you cannot exclude liability for death or personal injury caused by negligence by a term in a consumer contract or notice, and other terms must be fair. See our waivers guide.
Can a customer cancel a bike hire within 14 days?
The 14-day right to cancel for distance bookings excludes vehicle rental and leisure services booked for a specific date or period. A dated bike hire very probably falls within that exclusion. State your own cancellation terms clearly.
What should I look for in bike rental check out software?
Individual bike tracking, a record of condition at handover and return, waivers with a date and time, card deposit holds, no double bookings, staff roles with an audit log, export of your data and a clear answer on what happens when the internet drops. Section 6 has the full list.
Do I need to pay the ICO fee?
Most organisations that process personal data do, unless exempt. Tier 1 was £52 (£47 by direct debit) on the ICO’s page dated September 2025. CCTV for crime prevention triggers it regardless. Use the ICO’s self-assessment tool.
Where to go from here
The honest answer to "do you need a licence?" is "probably not one with your name on it, but you need agreement from whoever owns the ground, the right insurance and paperwork that stands up". Those are all things you can sort out in a few weeks, before the first customer.
If you are earlier on the road, read our guide to starting a bike rental business in the UK. If you plan guided rides, read starting a cycling tour business, and if you plan overnight trips, read how to run a cycling holiday company. If you would like one place to take bookings, deposit holds and digital waivers, you can see how RideLoop handles bike hire or book a walkthrough.
Bruno Mota
Founder and CEO, Motacycles Ltd
Bruno runs Motacycles, a bike shop and workshop, and builds RideLoop on the same counter. More about the team
