Cycle to work affordably

A cycling employee can receive financial support in several ways. For example, an employer can grant a bike allowance. This allowance is tax-exempt (you do not pay taxes on it) up to a maximum of 24 cents per kilometer for commuting. Amounts above 27 cents per kilometer are considered part of professional income (and are therefore taxable).

There is no general, national obligation for employers to pay a bike allowance, but in more and more sectors this obligation is included in collective labor agreements. For example, the more than 400,000 employees covered by Joint Committee 200 (formerly ANPCB) have, since July 1 of this year, been entitled to a bike allowance of at least 10 cents per kilometer (with a maximum of €4, or 40 km, per day).

Not everyone cycles to work every day of the year. Often, bike commuting is limited to the warmer spring and summer months. It is important to know that the bike allowance may only be granted for the days on which an employee actually uses a bike.

Unlike the “benefit in kind” for a company car, employees do not pay taxes on a company bike.

The same applies to commuting that is partly done by bike, for example to a carpool location or a train station. Only the kilometers actually cycled to the station are eligible for compensation.

The rise of speed pedelecs

Good to know: there is no legal limit to the number of kilometers eligible for a bike allowance . Thanks to the rise of fast speed pedelecs, longer commutes - over 20 km one way - are now feasible for many employees.

The Cyclists’ Union reminds us that “employee and employer jointly determine the best and safest route for commuting.” In other words, if the shortest route is not the safest, the employee can propose an alternative (longer) route to the employer. To avoid continuous tracking of cycled kilometers, a “declaration of honor” is often used, in which the employee (once) states the number of kilometers and working days involved.

What does such a bike allowance yield? Suppose you cycle to work 100 days per year over a distance of 10 km one way (so 20 km per day). You would be entitled to a bike allowance of up to €480. Tax-free.

Flat-rate of €410

There is an alternative formula. Employers can choose to grant their cycling employees an annual flat-rate allowance. This is administratively simpler. This amount is also tax-exempt, up to a ceiling of €410. The same fiscal threshold also applies to employees who commute with their own car.

There are also tax incentives for employers. No social contributions are due on a bike allowance, and this expense can be deducted as 100% business costs, leading to lower corporate tax.

All types of bikes

The type of bike used for commuting does not matter. All types qualify for a bike allowance, from a classic city bike to a road bike or mountain bike , as well as e-bikes and speed pedelecs .

You may also have access to a company bike. More and more companies offer a leased bike as an extra-legal benefit or as an alternative compensation model, for example as a replacement for the traditional end-of-year bonus. There are already more than 50,000 company bikes on the road in our country - and over 500 are added every month.

The company bike system is also fiscally attractive. For employers, leasing costs are tax-deductible . This also applies to maintenance costs and even related expenses such as bike helmets , locks , reflective vests and the installation of bike parking facilities. The more expensive the company bike, the greater the tax advantage for the employer - which explains the strong popularity of high-end speed pedelecs in leasing formulas.

Unlike the “benefit in kind” for a company car, employees do not pay taxes on a company bike. Moreover, they remain eligible for a bike allowance . Even employees with a company car can receive a bike allowance for the days they commute by bike. As a private individual, it is not possible to lease a bike .

More accidents

There is also a downside to consider: traffic risks. The number of accidents involving cyclists during commuting — and thus recognized as workplace accidents — has increased by 35% in recent years, according to an analysis by insurer Axa. In 2019 alone, Axa recorded 2,351 cycling accidents during commuting within its client portfolio.

In two-thirds of cases, injuries were minor, without absence from work or with less than five days of absence. However, in one in five cycling accidents, the severity of injuries leads to more than a month of absence. In one out of ten cases, head injuries are involved. Axa emphasizes the importance of wearing a proper bike helmet, even though it is not always mandatory.

De Standaard — Johan Rasking, Saturday, September 26, 2020