Business bike: purchase, taxes, types of bikes – what fleet managers need to know

A service bike is a bicycle or e-bike that an employer provides to its employees as part of their work equipment. This could be a bike that is only used for commuting or a bike that employees can use privately.

Compared to the company car, the company bike still plays the role of an outsider. But after the Corona crisis, interest in e-bikes and peddles has increased significantly. Companies are increasingly offering company bikes instead of company cars. Several points should be considered.

Advantages of a service bike

The benefits of a company bike for employees are many. It offers an environmentally friendly alternative to the car, improves health through exercise and can be financially more attractive than buying your own bicycle. The employer also benefits from this, as by offering a company bike as a benefit, it increases the attractiveness of its company as an employer and at the same time can promote the health and motivation of employees.

Company bike: This should be taken into account for taxation purposes

Company cars and company bikes are treated the same for tax purposes. Employees can use the e-bike not only to get to work, but also for private tours. Unlike a company car, commuting on a company bike is tax-free.

However, the employee enjoys a monetary advantage through the personal use of the company bicycle, which is taxed monthly. The 0.25 percent rule is effective from 2020. The list price is a non-binding recommendation of the manufacturer’s or seller’s gross price at the time of initial use.

Company Bike: This is how salary conversion works

The employee’s participation in costs occurs through the conversion of wages. As a result of the transfer of salary, the base for calculating income tax and social insurance changes. Then employees pay less payroll tax and less social security contributions. The employer also benefits: he pays slightly less for pension, health, care and unemployment insurance. It can participate in the usage rate, so it is at least partially funded by it.

For commuting, an employee can claim 30 cents for each kilometer traveled per day in the tax return. If an employee receives a company bike in addition to his salary and does not have to make a financial contribution, he does not have to pay any taxes or duties.

Typically, an employer leases a company bike, which can deduct the leasing and insurance rates as operating expenses. Leasing contracts usually last for three years.

These types of bikes are suitable for business bikes

Bicycles and e-bikes of all kinds can be offered as service bikes: racing, mountain, cargo, e-bikes and pedelecs. The latter can provide electric support only up to 25 km/h. However, the offer is not limited to bicycle manufacturers or bicycle dealers – other companies, such as leasing or financial service providers, can also offer branded bicycles as part of a lease or installment plan.

Fast pedelecs (S-pedelecs) with pedal assistance up to 45 km/h are considered mechanical vehicles for tax purposes and are treated as electric company cars. When using an S-Pedelec, trips between home and first place of work are also taxed as a cash benefit of 0.03 percent of the purchase price per kilometer.

For S-Pedelecs, a driver’s license, insurance card and helmet are required. Wearing a safety helmet is generally recommended for other types of bicycles, but not mandatory.

Who offers company bikes?

Some of the most famous companies that offer company bikes for lease are:

  • JobRad
  • Rent
  • Business bike
  • European Council

However, there are also many regional suppliers that offer company bikes. Before choosing a company bike supplier, companies should learn about different offers and compare terms to find the right offer.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top