Tax Free Bicycles for British Employees: Cyclescheme

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In an attempt to get more Britons out of their cars and into carbon neutral two wheeling, employees in the UK are able to access a bicycle for work commuting that saves them about 43% against the normal Value Added Tax (VAT).

Managed in a similar way to employees who have a company car on a salary sacrifice , employers can give their staff a voucher to purchase a bicycle, to the value of about £1,000 (~$2,000 USD).

The employer owns the bike, but the staff member gets its use for commuting and after hours recreational use. At the end of the Cyclescheme lease period the employee may buy the bicycle at ‘fair market value.’

Secondhand bikes are not permitted under the scheme but electric assist models are. The website has an exhaustive Question and Answer section that should cover most queries. ::Cyclescheme

Tags: Commuting

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