HMRC include accessory only sales in cycle to work scheme - News

Search News

Results: 1-10 of 208


Motoring and cycling groups slam call for bike number plates as

19 Oct 2017

After survey suggests people back the idea
Read more…

All Terrain Cycles launches dedicated women's cycle store

12 Oct 2017

‘Yorkshire Lass' offers range of women's only products
Read more…

Significantly more independent stores opening compared to chains

11 Oct 2017

More independents opened in first half of 2017 vs 2016
Read more…

Free bike hire to mark World Mental Health Day

9 Oct 2017

British Cycling and Mobike mark World Mental Health Day with free bike hire
Read more…

100,000 riders take part in traffic-free HSBC UK City Rides

4 Oct 2017

Thousands took part in this year's events
Read more…

Cycle employers come together to develop apprenticeship standard

28 Sep 2017

Proposal for new apprenticeship standards submitted

Read more…

Operation Close Pass sees a reduction in cyclist casualties

26 Sep 2017

Number of cyclist casualties down 20%
Read more…

Bicycle maintenance guide: How to set up your mountain bike suspension

20 Sep 2017

Looking after your bike shouldn't be a bumpy ride!
Read more…

Back to news menu

HMRC include accessory only sales in cycle to work scheme

Posted on in Cycles News

HM Revenue and Customs has confirmed that cycle safety equipment on its own is included under the remit of salary sacrifice cycle to work limitations.

HMRC advised the Cycle to Work Alliance - a group of Cycle to Work scheme providers in the UK - that as long as the loan of the equipment meets the conditions in the legislation, there does not need to be a cycle involved.

The Revenue said it is important to note that for a scheme to be valid an employer is required to make both bicycles and cyclists safety equipment available to its employees.

Previously it had been believed that, in order to take part in the scheme, an employee must sacrifice salary towards the cost of a bicycle in all instances and safety equipment could then be selected in addition.

According to HMRC, the guidance presents an opportunity for employers to remarket existing cycle to work schemes.
Many schemes that have reached maturity with regard to cycles may see renewed interest from staff who wish to replace some or all of their safety equipment in an income tax and national insurance efficient way.

At the end of the loan period, employers may wish to give staff the opportunity to buy their cycle and safety equipment, the value of which can be determined using HMRC's valuation table.

In using the valuation table, the original price of the cycle includes safety equipment fitted to the cycle but not safety equipment which had been worn by the cyclist. Safety equipment not attached to the bike is not subject to HMRC's valuation table.

HMRC classified safety equipment as anything that employees need to get them safely to and from work throughout the year. This includes equipment attached to the bike and covers lights - including dynamo packs, bells and bulb horns, locks and chains, mirrors and mud guards and children's seats.

HMRC said that: "Where used regularly for commuting and/or travel between workplaces, safety equipment worn by the cyclist is likely to have a market value lower than the table percentages for a cycle and cycle-based safety equipment."

Helm Godfrey deputy head of employee benefits Ed Smithson said: "The cycle to work scheme has been hugely popular as a tax-efficient employee benefit and encouraged many more people to get on their bikes.

"HMRC's new guidance should help inject further life into it. It's now confirmed that safety equipment, such as helmets, lights, locks and clothing, can be bought under the scheme without having to buy a bike itself.

"Employees can, of course, still get the bike. But if they already have one, obtained under Cycle to Work or otherwise, they can make use of the scheme to buy additional safety equipment. This new guidance is good news for cyclists and cycling and further increase the attractiveness of the Cycle to Work scheme to employers and employees," he added.

Back to news menu

Add a comment



The ACT will not share your email address with anyone and it will not be published on the website.