New employees are eligible for the employer provided cycles exemption

HMRC has confirmed that employees joining a cycle to work scheme from 21 December 2020 will be eligible for the tax exemption on the provision of a cycle if they are currently cycling to work and can meet the qualifying journeys condition.

This announcement follows the Treasury statement in December that employees who joined an employer-provided cycles scheme on or before 20 December 2020 could benefit from a time limited easement. This was because they could not have reasonably foreseen the changes to their working pattern as a result of the coronavirus restrictions.

HMRC states that new scheme entrants who are working from home still have the option to join a scheme but they may be liable to a tax charge if they fail to meet the qualifying journeys condition - mainly travelling to or from work or in the course of work. They...