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Tax incentives

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Cycle commuting is a convenient way for people to fit exercise into the daily routine, and work-related travel by cycle helps ease congestion and is good for the economy and the environment. To help, the Government has introduced a range of cycle-friendly tax incentives for employers and employees.
A cycle commuter on his way to work
Commuting to work by bike can save time and money

Lending or hiring cycles or cyclists’ safety equipment

If an employer lends or hires cycles or cyclists’ safety equipment to employees, the benefit of this is exempt from tax on employment income. The cycles or equipment should be generally available to all employees, and mainly used for travel between home and the workplace.  

The exemption also covers the provision of a voucher for hiring bicycles and equipment.

The relevant legislation does not define exactly what is meant by ‘safety equipment’, but HMRC says that it includes such things as:

  • Cycle helmets which conform to European standard EN 1078
  • Bells, bulb horns and lights including dynamo packs
  • Child safety seats
  • Reflective clothing along with white front reflectors and spoke reflectors

It does not include:

  • Cycle computers
  • Waterproof clothing that is not reflective clothing
  • Cycle training

See HMRC's Exemption for bicycles factsheet

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  • Patron: Her Majesty The Queen
  • President: Jon Snow
  • Chief Executive: Gordon Seabright
  • Cyclists' Touring Club (CTC): A company limited by guarantee, registered in England no.25185. Registered as a charity in England and Wales No 1147607 and in Scotland No SC042541
  • CTC Charitable Trust: A company limited by guarantee, registered in England no.5125969. Registered as a charity in England and Wales No 1104324 and Scotland No SC038626

 

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