Back in January 2021, we reported how the Government had allowed a temporary easement on the operation of the cycle to work scheme in respect of qualifying journeys. Under the cycle to work scheme, an employee can hire a bike and/or associated safety equipment from their employer and pay for that hire out of their pre-tax earnings. The scheme allows employees to obtain a bike in a tax-efficient manner, as long as the employee uses the bike at least 50 percent of the time for qualifying journeys. This is the ‘main use test’ and to satisfy it the bike should be mainly used for commuting to work. Employees who fail to meet the main use test could be liable for a benefit in kind income tax charge.

Due to the increased level of home working during the pandemic, the temporary easement ensured that no one who joined an employer-provided cycle scheme on or before 20 December 2020 had to satisfy the main use test – a welcome relief for any cyclists working from home.

That easement has now ended and, from 6 April 2022, all employees on an existing cycling scheme will need to meet the normal conditions, including the qualifying journeys condition.

This brings employees who received a bike prior to 20 December 2020 back in line with those who joined the scheme on or after 21 December 2020. The latter group were not able to benefit from the easement as it was expected that they would already have factored in the impact of the pandemic on their commuting when they joined the scheme.