Limit to cost of e-cycle provided to employees?

If not a formal Cycle to Work scheme within the Consumer Credit rules is there any cycle cost limit?

Didn't find your answer?

I am aware that the cycle to work schemes have a £1,000 limit due to the Consumer Credit rules.

However if a company purchases an e-cycle for an employee(s) and just let's them use it for commuting, but without any rental agreement or purchase option, as far as I can see this does not result in a benefit in kind no matter the value. There does not appear to be any HMRC limit on the cost of the cycle so a cycle costing £2,000 would be fine, the company could reclaim the VAT and also AIA on the cycle. It would remain a company asset.

I believe that all employees would need to be offered a bike, but that the bikes could vary in price.

Is it correct that there is no limit? Any other comments?

Replies (7)

Please login or register to join the discussion.

Portia profile image
By Portia Nina Levin
01st May 2018 10:30

You are correct.

Thanks (3)
avatar
By Tax Dragon
01st May 2018 14:01

If e-cycle is short for EAPC, I agree.

Thanks (1)
Replying to Tax Dragon:
Portia profile image
By Portia Nina Levin
01st May 2018 15:07

How can a longer term be short for a shorter term?

Thanks (0)
Replying to Portia Nina Levin:
avatar
By chicken farmer
01st May 2018 18:25

Yes, never use a big word when a diminutive one will do instead.

Thanks (0)
avatar
By Carl London
01st Aug 2018 10:26

Sorry to dig up this thread again - does anyone have a link to technical guidance which confirms an e-bike is the same as a pedal bike for BIK purposes please ? I can't find anything!!

Thanks (0)
avatar
By Carl London
02nd Aug 2018 12:51

Thank you!!!

Thanks (0)