Company bicycle more attractive in 2020
May 23, 2019
Would you like to benefit from a better condition and tax benefits without harming the environment? From 2020 it is all possible. From 2020, riding a company (electric) bicycle will become a lot more attractive from a tax point of view.
Do you currently ride a company bicycle and also use it for private purposes, such as shopping or picking up your offspring? Then you have to keep track of how many private kilometers you have covered with your two-wheeler. Lots of unnecessary hassle if you ask us. But that will come to an end with effect from 2020. For the bicycle, just as for the car, there will be a fixed addition for private use.
The annual addition amounts to 7% of the recommended retail price - the original new value - of the bicycle. This addition is added to your salary. An example: your gross annual income is € 30.000,00 and your employer makes a bicycle worth € 2.000,00 available to you. The addition for this is 7% of € 2.000,00, or € 140,00 per year. You only pay for the bicycle on an annual basis
approx. € 60,00 in tax. That is approximately € 5,00 per month. And that is a lot cheaper than a subscription at your local gym.
To be able to make use of this, agreements must be made with your employer. These agreements can be recorded in the collective labor agreement, company regulations or lease regulations. If no collective labor agreement or company regulations apply, you can make an individual agreement with the employer about the lease rules / lease bicycle. In that case, have the agreements made in writing in your employment contract (or an addition to it) or lease plan. This makes it clear to both parties what exactly has been agreed.
All in all, enough reasons to sit down with your employer to talk about that lease bicycle. No emissions and a better condition for a very good price.
Do you have any questions? Then contact us. We can help you with this. We can be reached by telephone on 0345 - 851 963 and you can also email us via email@example.com.