Cycle-to-work scheme

My daughter’s employer recently offered her a bicycle under the cycle to work (CTW) scheme. She asked me what the benefits were and I waffled about National Insurance savings and told her that it was undoubtedly ‘a good thing’. Then a client said she wanted to buy a bicycle through her own company and suddenly waffle would not do. Good things can be quite complicated and there seems to be little detailed and comprehensive guidance on all aspects of this one. I have therefore written this not necessarily to claim that it gives all the answers but to set out the issues. If other readers have anything to add perhaps this can be covered in a ‘feedback’ page.

The exemption

The basis of the CTW scheme is in ITEPA 2003 s 244. No liability to income tax arises in respect of the provision for...