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Cycle To Work Scheme - Repairs

Are repairs a benefit in kind?

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I had always believed that repairs to cycles under a cycle to work scheme are a Benefit in Kind. 

“Where an employee has sole use of an employer-provided cycle, the provision by the employer of repairs to that cycle will rank as a benefit in the hands of the employee. This is because there is no equivalent for cycles to the rule that removes any separate benefit in respect of repairs for cars.”

 

However, the latest guidance https://assets.publishing.service.gov.uk/government/uploads/system/uploa...) states that safety equipment includes “Replacement parts to keep a cycle roadworthy.”  Most repairs are undertaken to keep the cycle roadworthy.  Even the replacement of a chainset, is required to keep the cycle roadworthy.  I understood that safety equipment was not a BIK.  

I would be grateful for any advice.

Replies (6)

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By WhichTyler
18th Nov 2019 10:49

I guess if you buy some spare innertubes or similar when you buy the bike, you canadd it into the initial cost.

TBH if you have enough spare time to worry about splitting the bill for a bicycle chain repair between parts and labour so you can BIK part of it, then I envy you

This is why I tend to shut down C2W schemes whenever I see them (and replace with interest free employee loans), because the complexity of interaction of VAT, NI, PAYE, fixed assets (depreciation and gain/loss on disposal) is just not worthwhile...

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By The Dullard
18th Nov 2019 11:25

The latest guidance? That's the DfT's interpretation. They say it isn't defined in the legislation, but it *might* include... replacement parts..."

It is a much longer list than in HMRC's guidance for the cycles exemption on whicg the DfT scheme relies.

However: trivial benefits?

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Replying to The Dullard:
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By The Dullard
18th Nov 2019 11:35

Oops... I forgot to give the link to HMRC's guidance: https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim21664

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Replying to The Dullard:
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By Mr_awol
18th Nov 2019 13:13

The Dullard wrote:

However: trivial benefits?

Strangely the OP included the guidance from the trivial benefits guidance - but then omitted the bit about them being trivial benefits.

That said, to be trivial it needs to be less than £20. I'm not sure whether this covers much typical repair and/or maintenance work.

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Psycho
By Wilson Philips
18th Nov 2019 13:38

A replacement part is not a repair. Which I guess is the point made in the 2nd paragraph of the first response.

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By All
18th Nov 2019 18:44

Thank you for your responses.

I don't currently have a problem but I have a couple of clients with cycle to work schemes.
The new guidance has been developed by DfT, HMRC and FCA. New parts for cycles can be quite expensive. I have seen invoices for over £200 - nevertheless still probably not worth the time to unpick.

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