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Company bicycle will be cheaper

company bicycle lease bicycle De Unie

It will be cheaper to come to work in a healthier and more environmentally friendly way: the company bicycle will be cheaper. From 1 January 2020, the fixed addition amounts to 7 percent of the new value of the bicycle. This makes two-wheelers from the expensive segment - such as racing bikes, e-bikes and speed pedelecs - more affordable. This makes the bicycle a good alternative for the lease car.

But first: what is addition again?

If you buy a means of transport, you simply pay tax on it. But if you lease one, your employer pays the insurance and taxes; after all, you use it for work. However, many people also use their lease car or bicycle for private trips. For lease cars it was therefore thought: if you drive more than 500 private kilometers per year, you have to pay tax on this. This is a certain percentage of the catalog value (new value) of the car. We call this percentage addition. The addition is added to your wages; you therefore pay wage tax on this.

What exactly will change in the lease bicycle scheme?

Now there are also bicycles from the company, but there is no fixed addition. So do you use the lease bike to go shopping, take your children to school or cycle to the sports club? Then you have to keep track of all those private kilometers. Via a complex calculation you will then arrive at the amount that you have to pay for private use of your lease bicycle.

From 1 January 2020, a fixed addition applies to the lease bicycle: 7 percent. So you always pay that - even if you only cycle for business. So you no longer have to keep track of how many kilometers you drive, and which ones were private. Well that clear, right?

How exactly does the new lease scheme work?

Whether or not you ride a company bicycle from 1 January depends mainly on your employer. Is there anything about it in your collective labor agreement or employment conditions? If not, talk about it. Have any agreements recorded in the terms of employment, company or lease regulations. Good to know: your employer is allowed to offer a lease car and a lease bicycle, so you don't have to choose.

Calculation example

Suppose your employer allows you to choose a bicycle worth € 2.000. Then the addition is annually 7 percent of the new value, so € 140. You add this amount to your gross annual income: you pay income tax on that total.

Questions?

Would you like to know more about the new lease bicycle rules? Or discuss advice about the lease bike with your employer? Contact our specialists! We can be reached every working day from 8.00 a.m. to 18.00 p.m. Call or email us on 0345 851 963 or sc@unie.nl.