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Budget 2021: Benefits-in-kind for employees

Rules concerning employer provided bicycles and Covid-19 tests are eased to ensure employees are not taxed, electric vans will attract zero benefit charge and electric cars just 1% of list price.

3rd Mar 2021
Director Writetax Ltd
In association with
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2021 Budget - Help to Grow scheme
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Easement for employer-provided cycles

Legislation is to be included in the 2021 Finance Bill to introduce a limited-time easement to the exemption for employer-provided bicycles.

The availability of the exemption is subject to the associated conditions being met. One of these conditions is that the employer-provided cycles must be used mainly for journeys to, from or during work.

The Covid-19 pandemic has meant that many employers have been working from home and, as a result, are not using employer-provided cycles to commute to work. The requirement that the cycles must be used mainly for journeys to, from or during work will not apply to employees who joined a cycle to work scheme on or before 20 December 2020, until 5 April 2022.

However, employees who join a cycle to work scheme on or after 20 December 2020 will need to meet the main use condition from the date of joining to qualify for the exemption.

Covid-19 tests

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