| Employment Income: Deductions and Expenses |
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employers and the service must be for qualifying journeys.64 The support must be provided directly to the operator; if the service is not a local bus service as defined, the terms on which the employees travel must not be more favourable than to other passengers.65 In any case the service must be available to employees generally.66 |
18A.2.6.3 Motor Bikes and Cycles |
The various exemptions from tax for car parking spaces are extended to spaces for parking motor cycles and facilities for parking cycles.67 Why cycles need ‘facilities’ and motor cycles need only ‘spaces’ is unclear. Presumably this wording is intended to cover facilities for locking bicycles up. |
18A.2.6.4 Bikes (and trikes) |
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ITEPA section 244 (ex TA 1988, section 197AC) removes any charge under the benefits code where an employer lends an employee a cycle or a cyclist’s safety equipment.68 The benefit or facility must be available to employees generally. The employee must use it mainly for qualifying journeys.69 Safety equipment is not defined, but presumably includes lights, reflective strips and coats and safety helmet; it is unlikely to cover fancy gears (which will be part of the cycle) or a rain—cape or lock. Some softening of these boundaries may occur in practice. |
18A.2.6.5 Bicycle Mileage |
In addition, the Revenue has announced a tax—free business allowance of 12 p per business mile. This allows an employer to pay an employee such a sum and for the employee to claim that allowance to the extent that the employer does not pay it. The original notice stated that the employee could not claim both this allowance and the |