Company E-Bike: Now Even Easier Administratively

Commuting: Proof of Use Was Always Troublesome

For commuting and travel allowance, employers currently need to prove how employees travel to work. Keeping track of this commuting is administratively demanding when someone uses both private transport and a company bike. Providing this proof was quite a hassle.

To encourage more employers to adopt the new bike plan, the government wants to simplify commuting administration.

Individual Agreements about Personal Transport

The burden of proof for fixed travel allowance is simplified in the following way:

Employer and employee can make agreements about how many days per week the employee uses the company bike to commute and how many days they use their own transport. The fixed travel allowance is determined based on this.

Of course, these agreements must reasonably reflect reality and the employee’s situation. The agreement doesn’t immediately become void if an employee occasionally deviates from it.

Bike Plan: a Company E-Bike

With this simplified proof requirement, it becomes even more attractive for employers to offer a bike plan to enthusiastic employees.

When looking for a partner to lease an electric bike, it’s important to consider the administrative aspects. At Cyclis, we ensure you save time and effort by maintaining direct and personal contact with individual (potential) participants in the bike plan.

Besides simplifying administration, investing in e-bikes or personalized ideal bikes for employees contributes to good employment practices. The bike scheme also promotes healthy employees.

Leasing an E-Bike as a Self-Employed Person?

As a sole proprietorship, you can buy or lease an electric bike for business use, provided it’s used for at least 10% of your business activities. The tax addition for income tax is 7% of the recommended price. You can find the calculation example on this Chamber of Commerce page. This addition must be added to your total profit.

Deductible Costs for Self-Employed

The total amount spent on the company bike can be deducted from your profit. You do this by calculating the annual depreciation of the bike. On the Tax Office information page, you’ll find how to calculate the annual depreciation.

Additionally, related costs are also eligible for deduction. Consider other expenses such as:

• • Insurance premiums

• • Repair bills

• • Any bike accessories

Travel Allowance

Employees are not eligible for a mileage allowance when using a company bike, e-bike, or speed pedelec for business trips. The tax-free travel allowance therefore doesn’t apply. That’s why leasing a company e-bike is an attractive option. Travel costs for business-related kilometers no longer need to be paid.

If you agree to use the bike for commuting half the time, certain travel allowances apply only for the days when you use other transportation.

VAT Deduction

Companies can deduct the purchase costs of their e-bike company bicycle and related expenses as input tax. When the bike is used privately, there must be a plan for handling VAT. Use the VAT deduction for mixed use regulation from the Tax Office.

You can use the bike unlimited for private purposes. However, this makes it less attractive for the business kilometers you make with it.

Company E-Bike in 2023

The new legislation for company e-bikes makes administration easier for employers. The travel allowance only applies to days when the employee doesn’t commute with the lease bike. At the same time, the employee benefits from the tax advantages of a bike lease plan. This written agreement makes proof of use much simpler for the employer.

Cyclis Bike Lease Plan: how Does it Work?

Leasing a company e-bike is very simple. Say you offer employees an electric bike subscription:

1. 1. Our team works with you and HR to create a bike plan for employees. We provide all necessary documents.

1. 1. Get your employees excited. You can organize a kick-off event with Cyclis. Our experts will inform your colleagues. We use promotional materials like webinars, presentations, and info brochures.

1. 1. Interested employees can choose their favorite bike at a local bike shop. Leasing an e-bike, speed pedelecs, or electric cargo bike – everything is possible. Our staff then prepare a customized lease quote.

1. 1. Once you approve the quote, we keep the employee updated on the delivery status of their company bike.

1. 1. Track your bike fleet in the App. The My.Cyclis tool gives you insight into the number of bikes and which employees are using the lease plan. From here, you can easily manage the administration.

When the lease period ends, employees can purchase the bike for the communicated residual value. They can also return it free of charge to the local bike shop that provided it. Cyclis fully manages the purchase or return for the employer.

Need Specialist Advice?

Want to know more about the new simplified rules for lease plan administration? Or do you have (personal) questions you’d like to discuss with a specialist? Schedule a one-on-one appointment and our team will gladly answer your questions so you can make well-informed choices.