|
Duncan's Cycles
-
Cycle To Work
To
promote healthier journeys to work and to reduce
environmental pollution, the 1999 Finance Act
introduced an annual tax exemption, which allows
employers to loan cycles and cyclists’ safety
equipment to employees as a tax-free benefit. The
exemption was one of a series of measures introduced
under the Government’s Green Transport Plan. The
following guidelines clarify how organisations can
take advantage of the exemption to implement a Cycle
to Work scheme that encourages employees to cycle to
work and allows employers to reap the benefits of a
healthier workforce.
These notes are for guidance only and reflect the
tax position at the time of writing and the law as
it relates to the provision of consumer credit. The
tax exemption refers to cycles and cyclists’ safety
equipment loaned to employees by employers. However,
where salary sacrifice arrangements are used, Cycle
to Work schemes must be regulated hire agreements
between the employer and the employee. The terms
‘hire’ and ‘loan’ are therefore both used in these
guidelines.
Guidelines are available which clarify how
organisations can take advantage of the exemption to
implement a Cycle to Work scheme that encourages
employees to cycle to work and allows employers to
reap the benefits of a healthier workforce.
|
|
|
Personal service and helpful advice
|
