Tax breaks and travel plans
- By London Cycling Campaign on at 11:00pm 11 September 2006
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Not only can employers offer free breakfasts to encourage cyclists every day of the year, tax free, but mileage allowances have been increased in recent years to 20 pence per mile. If the employer doesn't offer this the cyclist can claim it themself. Read more about the tax advantages for cyclists " on this website.
If you set up a Travel Plan, or Green Transport plan, to reduce car use you can then offer parking facilities, pool bikes, cycle mileage allowances and loans for employees to buy bicycles, all without the usual tax implications. Provided the bikes, whether personal or pool bikes, are used mainly for getting to and from work, employees are allowed to use them for leisure as well.
Travel Plans need not only cover cycling. They can help you devise a strategy to encourage walking and public transport also. Transport for London provides advice on setting up a Travel Plan, contact Patrick Allcorn on 020 7941 4747. The Energy Saving Trust also offers advice on setting up a Travel Plan - visit their site through the link on the right.
Employers are allowed to claim relief for capital expenditure on any bikes bought as part of a Travel Plan, and also for any computers and software used to set up and monitor the plan. More information is available from the HM Revenue & Customs website; specifically from the page linked on the right.
A new initiative announced by the government will allow employees to buy bikes through their company and save up to 50%. For further information visit the HM Revenue & Customs website or Booost.