22 May Tax Breaks for Cyclists
Due to the current pandemic many people have been cycling to work to avoid public transport and keep safe.
There is a tax efficient way to provide your staff cycle which is usually implemented using the cycle to work scheme. This enables an employer to provide cycles and associated safety equipment to staff tax free.
The equipment must be offered to all company employees and the ownership must be retained with the company throughout. The equipment must also be used mainly for work journeys.
The company is able to claim all of the VAT on the cycle and the equipment such as helmets, gloves, lights, etc. Any ongoing repairs and maintenance of the equipment also attract full corporation tax relief.
It may be useful to explore this option for staff during the current pandemic and keep up staff morale whilst remaining tax efficient.