Lump-sum allowance for work-related expenses<\/strong><\/h4>\nReimbursing, providing or making a bicycle available to your employee results in remuneration that is subject to payroll tax.<\/p>\n
The bicycle can be designated for the work-related expenses allowance. These designated salary components are not taxed up to 1.2% of the total salary. This allowance also covers salary components other than bicycles. For employers with a bicycle scheme, the work-related expenses allowance is generally reached quite quickly.<\/p>\n
If the flat-rate limit is exceeded, you, as the employer, are liable for the payroll taxes. You may not pass these on to your employees. The rate: 80%<\/strong>. A bicycle costing \u20ac1,000 will therefore cost you, as an employer, \u20ac1,800.<\/p>\nTo a significant extent unusual?<\/strong><\/h4>\nYou may only designate a salary component for the work-related expenses allowance if the provision of that component is not, to a significant extent, unusual (to a significant extent = 30% or more). If it is reasonable to assume that the employee uses the bicycle for commuting and\/or business journeys, this is not a problem.<\/p>\n
However, if the bicycle is used solely for private purposes, this may be somewhat less certain. This is particularly the case with specialist bicycles (such as a road bike).<\/p>\n
If the total value of allowances and benefits in kind paid to an employee in a calendar year remains below \u20ac2,400, they are deemed not to be significantly out of the ordinary.<\/p>\n
If it subsequently transpires that the bicycle is not covered by the work-related expenses allowance, you, as an employer, must pay payroll tax at the gross final levy rate. For employees with a taxable salary of more than \u20ac68,508, this amounts to no less than 107,2% <\/strong>(2019 rates).<\/p>\nRating<\/strong><\/h4>\nIf you provide or make a bicycle available to your employees, the taxable portion of their remuneration must be valued (remuneration in kind).<\/p>\n
Any bicycle you provide will have been purchased from a third party. The taxable value is then equal to the price stated on the invoice (including VAT).<\/p>\n
If the bicycle is provided, the private use of the bicycle must be taken into account. That is a lot more complex. The employee must then keep track of how many kilometres they cycle for business and for private purposes.<\/p>\n
With effect from 1 January 2020, the value of private use will be assessed on a flat-rate basis at 7% of the new value (including VAT) of the bicycle. The personal contribution paid to the employer for private use will be deducted from the additional tax liability, up to a maximum of the amount of the additional tax liability.<\/p>\n
The additional tax liability may be included within the WKR\u2019s discretionary allowance. Provided that the maximum limit of the discretionary allowance is not exceeded, no payroll tax is then payable.<\/p>\n
The additional tax liability applies only if the bicycle is also used for business purposes. The employer must provide evidence of this. If the employee cycles (part of) their journey to and from work, this is regarded as business use.<\/p>\n
Where the additional tax liability does not apply, the actual value of the private use must be taken into account.<\/p>\n
Is there a tax-free alternative?<\/strong><\/h4>\nAbsolutely! You\u2019ll then follow the route set out below, though you\u2019ll obviously need to decide in advance whether it suits you and your employee:<\/p>\n
\n- the employee buys the bicycle;<\/li>\n
- As an employer, you provide an interest-free loan for this purpose;<\/li>\n
- you pay the employee an allowance of \u20ac0.19 per business kilometre (including journeys between home and work);<\/li>\n
- The employee uses the mileage allowance to repay the interest-free loan.<\/li>\n<\/ul>\n
The benefit of the interest-free loan is exempt from payroll tax. The allowance of \u20ac0.19 per business kilometre is also tax-free. Neither of these benefits is included in the work-related expenses allowance.<\/p>\n
Example<\/strong><\/p>\nYour employee cycles from home to work every day. The one-way distance is 7.5 kilometres.<\/p>\n
For the (electric) bicycle purchased by the employee, you lend the employee \u20ac 3.000<\/strong> (interest-free).<\/p>\nYou pay an employee who works for you full-time a tax-free fixed allowance for their commute of:<\/p>\n
214 * 7,5 * 2 * \u20ac 0,19 = \u20ac 609,90<\/strong>.<\/p>\nThe employee uses this amount to repay the interest-free loan. After approximately 5 years, the loan will have been repaid using the tax-free mileage allowance.<\/p>\n
Budget-neutral<\/strong><\/h4>\nIn this example, the bicycle will cost you, as the employer, \u20ac3,000. And you must ensure that the travel allowance does not continue to be paid once the loan has been repaid. After all, the employee has been entitled to it for five years.<\/p>\n
You can avoid this by agreeing with the employee that their gross salary will be reduced by the amount of the travel allowance they are due to receive. On balance, the bicycle will then cost you, as the employer, nothing. Such an arrangement is also known as a \u201ccafeteria scheme\u201d.<\/p>\n
This results in a small benefit for the employee. This benefit is that the employee pays for the bicycle out of their gross salary. They simply use part of their net salary for this. The tax authorities cover the rest.<\/p>\n
However, this is subject to the employee\u2019s salary being permanently reduced. This may have knock-on effects on various income-related schemes.<\/p>\n
The cafeteria scheme can also be applied in conjunction with the additional tax liability scheme, which comes into force on 1 January 2020.<\/p>\n
Arrangements<\/strong><\/h4>\nOf course, you must make clear agreements with the employee. And set these out in writing. For example, what are the consequences of the employee\u2019s long-term illness or the termination of their employment? This must be made clear in advance.<\/p>\n
<\/p>\n
The purpose of this note is to outline a scheme. For the sake of readability, matters have therefore been simplified. VWG is therefore not liable for the consequences of actions taken or not taken as a result of this memorandum.<\/em><\/p>","protected":false},"excerpt":{"rendered":"Aangezien sprake is van een uitgebreide notitie adviseren wij je om deze hier in pdf-format te downloaden. De werkkostenregeling (WKR) in de loonbelasting kent een aantal mogelijkheden om je werknemer fiscaal vriendelijk een fiets te geven. Fiets van de zaak Als werkgever kun je werknemers op de volgende manieren een fiets van de zaak […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-535","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/comments?post=535"}],"version-history":[{"count":0,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/535\/revisions"}],"wp:attachment":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media?parent=535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/categories?post=535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/tags?post=535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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