In the UK, the Inland Revenue has a scheme running entitled IR176 ‘Green Travel’.
This means significant tax releif for employers who provide Electric Bikes to employees.
May 5, 2004 (Press Release) --
In the UK, the Inland Revenue has a scheme running entitled IR176 ‘Green Travel’.
What is significant is that, if your employer buys an Electric Bike for your usage, that purchase is free from tax and NICs (National Insurance Contributions), provided the Electric Bikes is primarily used to go to and from work.
Additionally the bike may be used for leisure as well, if it is mainly used for travelling to and from work.
As the bike is bought by the employer and remains the employer’s assets, the employer may claim a deduction for capital allowances and a tax deduction for repairs and other running costs.
Although the Electric Bike cannot be bought by the company and given to the employee as either as a salary sacrifice or as a gift as it would fall foul of certain anti avoidance provisions.
Capital Allowance Tax reliefs are available to employers, on the purchase of bicycles for employees where they are provided to employees and used primarily by employees to travel to and from work.
More good news
Where employees use their own Electric Bike for business travel, (excluding home to work travel).
An employer may pay a mileage allowance of up to 20p per mile, tax-free.
Notes: -
An Electric Bike is considered in the same way as a bicycle according to the Road Traffic Act of 1988 (c.52) Sections 189 & 192.
192. General interpretation of Act. "cycle" means a bicycle, a tricycle, or a cycle having four or more wheels, not being in any case a motor vehicle
189. Certain vehicles not to be treated as motor vehicles. (c) an electrically assisted pedal cycle of such a class as may be prescribed by regulations so made,
Electric Bikes Direct is pleased to support the ‘Green Travel’ initiative and assist both employees and employers to make the most of their entitlement.
Please visit www.electricbikesdirect.co.uk or call 0870 345 0775 for more information.
Electric Bikes Direct supplies a wide range of Folding Electric Bikes to suit all budgets. All comply with UK regulations.
Models currently available are BliSS, Bright Bikes, Dahon, Honda and Koolgachet.
All are fitted with EPAS, which is a system that requires you to pedal before the motor starts and stops if you brake.
What is significant is that, if your employer buys an Electric Bike for your usage, that purchase is free from tax and NICs (National Insurance Contributions), provided the Electric Bikes is primarily used to go to and from work.
Additionally the bike may be used for leisure as well, if it is mainly used for travelling to and from work.
As the bike is bought by the employer and remains the employer’s assets, the employer may claim a deduction for capital allowances and a tax deduction for repairs and other running costs.
Although the Electric Bike cannot be bought by the company and given to the employee as either as a salary sacrifice or as a gift as it would fall foul of certain anti avoidance provisions.
Capital Allowance Tax reliefs are available to employers, on the purchase of bicycles for employees where they are provided to employees and used primarily by employees to travel to and from work.
More good news
Where employees use their own Electric Bike for business travel, (excluding home to work travel).
An employer may pay a mileage allowance of up to 20p per mile, tax-free.
Notes: -
An Electric Bike is considered in the same way as a bicycle according to the Road Traffic Act of 1988 (c.52) Sections 189 & 192.
192. General interpretation of Act. "cycle" means a bicycle, a tricycle, or a cycle having four or more wheels, not being in any case a motor vehicle
189. Certain vehicles not to be treated as motor vehicles. (c) an electrically assisted pedal cycle of such a class as may be prescribed by regulations so made,
Electric Bikes Direct is pleased to support the ‘Green Travel’ initiative and assist both employees and employers to make the most of their entitlement.
Please visit www.electricbikesdirect.co.uk or call 0870 345 0775 for more information.
Electric Bikes Direct supplies a wide range of Folding Electric Bikes to suit all budgets. All comply with UK regulations.
Models currently available are BliSS, Bright Bikes, Dahon, Honda and Koolgachet.
All are fitted with EPAS, which is a system that requires you to pedal before the motor starts and stops if you brake.
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