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The bicycle, and now also the e-bike, are often used in the Netherlands as transport to and from work. Thus, it is no wonder that you can also get a "company bike" in addition to a "company car". Handy, if you are just planning on buying a new e-bike, because the advantageous scheme also applies to our electric bikes. From January 1, 2020, the rules regarding a company bicycle will be made even easier!
The well-known bicycle plan "business bike" cease to exist in 2015. From then on you can buy a bicycle under WKR, the labor costs scheme. The WKR is not only used for cycling but also for other things such as staff outings and fitness subscriptions. For all these types of allowances, 1.2 percent of the total wage bill is available at a company. If your employer goes over this, he will have to pay an additional tax of 80 percent. The bicycle plan, as we know it, no longer existed, but still lived on under the WKR. Cycling and dutch people, you just can't separate them.
In the meantime, a new bicycle plan has been created and fortunately buying a company bike from 2020 is a lot less complicated.
From January 2020, new rules ensure that buying a bicycle for the company will no longer involve administrative burdens. Employers may give employees, who come to work by bicycle, a tax-free allowance of a maximum of 19 cents per kilometer. This is the same as if you were coming by car. In addition, employers can provide an interest-free, loan for buying a bicycle. You then repay your bike, for example, with the kilometer allowance mentioned earlier. Your employer does not have to keep complicated administration for this, but can simply give you a fixed monthly compensation. Cyclists who ride a company bicycle will receive a 7% additional tax liability from 2020. That means that you can add 7% of the value of your bike to your wage on which you pay tax. The consumentenbond gives the following example: Suppose you ride an e-bike of € 2500, you pay at a tax rate of 40%, only € 70 per year.
What steps do I have to take, to participate in the bicycle plan? Don’t worry, there are only three steps. Of course, you cannot buy a bike and spontaneously push the receipt under the nose of your employer. You will have to take the initiative yourself if you have not heard anything about it from your employer, but afterwards you will ride a nice bike!
Go to your employer and ask if you can purchase a bicycle under the bicycle plan and how much money you can spend on the purchase of that new bicycle or e-bike. If there is no cycle plan yet, explain to your boss that it is super easy and that it has a lot of advantages. For more information about the bicycle plan you can refer your boss here.
You pick a bike. Yes! There are no restrictions, anything is allowed. As long as you stay within the budget that you received from your boss. If you choose a more expensive bicycle, you will have to pay the remaining amount yourself.
How you pay for the bicycle depends on what you have agreed with the company. You can pay for the bicycle yourself and declare it later or your employer will lend you an amount to pay for the bicycle and you will pay it back later.
A company bicycle is not only useful for getting from a to b quickly, but it also has other benefits. People, who cycle to work, get fitter and are less often ill. That is nice for your employer and of course for you too. Isn't it wonderful to be able to empty your head after a stressful workday?