Pedal to the metal! How do you arrange everything in the best way financially?
You are in paid employment and want to switch to a bicycle for your commute to work or need to purchase a new bicycle. Ask your employer about the terms and conditions. We have put together a few options for you:
Option 1: Make use of your kilometre allowance
Your employer may reimburse your business kilometres, including commuting. This reimbursement is tax-free up to a maximum of €0.19 per kilometre. It does not matter which means of transport you choose, as reimbursement also applies to travelling by bicycle. You can use the travel allowance to purchase or lease a bicycle.
If you occasionally travel by public transport or by car, Then you can use the travel allowance as a contribution to the costs.
Option 2: Company bicycle
Your employer buys or leases a bicycle that you can use for your commuting and work arrangements, but also privately. You pay an annual additional tax liability of 7% of the recommended retail price, even if you do not use the bicycle privately. You don't receive a travel allowance for the days you don't come to work by bicycle. If you don't come to work by bicycle on certain days but travel by public transport or use your own car, your employer can reimburse these travel expenses tax-free up to a maximum of €0.19 per kilometre.
Option 3: An interest-free loan
Your employer may lend you money without interest to buy your own bicycle. In this case, you become the owner of the bicycle. Arrange with your employer how and when you repay the loan, preferably in writing. Under this arrangement, your employer may give you a tax-free kilometre allowance that you can use for the monthly repayment.
Option 4: The work-related expenses
In the work-related expenses scheme, the employer has the possibility to give you a reimbursement with which you can buy a bicycle. This is tax-free for employees. Your employer may also give you a tax-free kilometre allowance in addition.
Option 5: Cafeteria model
You're not the same as your colleagues and that's why you want to make separate arrangements with your employer. In this cafeteria model, you can choose to buy a bicycle through your employer from part of your gross salary, your holiday pay, or a bonus. Please note that this temporarily reduces your gross wage and that this may have consequences for any benefits, the accrual of your pension, employee insurance schemes, and the like. You do not have this disadvantage if you hand in extra days’ holiday to purchase the bicycle. Your employer may also give you a tax-free kilometre allowance in this scheme.
With leasing, you pay a fixed monthly amount that includes the costs for maintenance and insurances. If you receive a travel allowance, you can choose to spend it on your lease bicycle. For more information, visit the ANWB website.
We will be happy to lend you an e-bike or speed bike for two weeks to see which bike is most suitable for your commute.