Over recent years, the Government has begun providing tax breaks and incentive schemes for employers wishing to promote cycling amongst their staff. More information is available on the HM Revenue & Customs (HMRC) and other government websites - see links below.
Green Travel Plans
Employers who draw up a Green Travel Plan, laying out ways to promote public transport and walking / cycling to work can receive tax breaks on cycle parking and provision of bicycles and safety equipment to employees.
Bicycles for staff
Employers can sign up for a new scheme which saves employees almost 50% of the cost of a new bike and accessories. The bike is purchased by the company, who can claim the VAT back, and the bike is then leased to the employee for one year. The employee pays a monthly rental which is deducted before national insurance and income tax. Their total taxable income is therefore smaller, so they pay less tax.
The following sources provide information on how the scheme works:
Despite the advice in the above leaflets, some employers (particularly smaller organisations) have found it difficult to implement the scheme's administrative requirements. There are now several companies who can offer assistance, including:
Liability issues
Another problem is caused by some employers' reluctance to promote cycling so actively because they - or more probably their Health and Safety advisers - are worried about liability issues. CTC argues that the risks to most people cycling are not a direct result of the management of the organisation but are posed by other drivers on the public highway. By encouraging cycling employers are actually imposing less risk on other road users, since those employees who cycle rather than drive represent a reduced risk to others. CTC has produce a briefing on the relative risks of employers' promoting cycling.
Cycling breakfasts
Employers can provide a tax-free breakfast to cyclists six days per year, to encourage people to try cycling to work.
Fact sheet for employers (HMRC)
Safety equipment
Employers can provide loans for safety equipment (lights, helmets, high-vis) to empoyees tax-free.
Fact sheet for employers (HMRC)
Cycling mileage
Employees who cycle for work should receive 20p / mile cycling mileage.
