Call us 0800 0523 555

Contact Us

*COVID-19 update: Many of our shops and offices are now open for face to face meetings with strict social distancing measures in place. We also offer telephone and video consultations for all new clients in order to discuss your needs. Find the latest COVID-19 information available for your business.

Cycle To Work and Tax Free Bicycles

Due to the increase in fuel prices over recent months, I’ve now started cycling to work. My employer has suggested that they could offer me a new bicycle under the “cycle to work” scheme. If I accept this offer, will I get taxed on this?

The UK government is keen to encourage use of more sustainable "greener" modes of transport, so introduced substantial tax breaks in the Finance Act 2003 for employees who cycle to work.

No tax or National Insurance is payable if your employer provides you with a bicycle and/or related safety equipment and they ensure the provision of the bicycle and equipment is available to all staff, and they are used for journeys to and from the workplace.

Some firms have implemented a salary sacrifice scheme to encourage the use of this scheme, as it reduces the amount of employers National Insurance Contributions payable.

However, in December 2009 HM Revenue & Customs clarified where employees are aged under 18, they are prevented them from entering into a legal agreement under which the employer would loan them the bike. Therefore they cannot participate in the scheme which means that the ‘All Employee’ condition of the cycle to work scheme is not met. You should ensure you check the validity of the scheme before agreeing to a salary sacrifice.

Call us today to make an appointment with your local office

Consultations available by telephone or video

0800 0523 555

Contact Us