Expenses and Benefits - Cycle-to-Work Schemes
Written by Ian Congreave - Filed under: Assets at employee's disposal (L), Cycles and cyclist’s safety equipment, Expenses and Benefits on December 23rd, 2009 | No Comments »
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Section 244 of the Income Tax (Earnings and Pensions) Act 2003 provides exemption from income tax on the provision of a cycle or cyclist’s safety equipment, irrespective of how it is provided, as long as the specified conditions are met. The exemption, which also applies to National Insurance contributions, has prompted the creation of “cycle-to-work” schemes, often as part of salary sacrifice arrangements. Employees sacrifice part of their salary in return for the loan of a cycle, making it possible for such schemes to be self-financing. As with childcare vouchers, employers generally use commercially-available schemes to provide this benefit.
Posted December 23rd, 2009 | No Comments »
Section 244 of the Income Tax (Earnings and Pensions) Act 2003 provides exemption from income tax on the provision of a cycle or cyclist’s safety equipment, irrespective of how it is provided, as long as the specified conditions are met. The exemption, which also applies to National Insurance contributions, has prompted the creation of “cycle-to-work” schemes, often as part of salary sacrifice arrangements. Employees sacrifice part of their salary in return for the loan of a cycle, making it possible for such schemes to be self-financing. As with childcare vouchers, employers generally use commercially-available schemes to provide this benefit.
