Foreword

By Marijke Bron, Sales Director at ALD Automotive

“With an e-bike you can cover longer distances quite easily and because it is affordable, it is an attractive means of transport to add to your mobility policy. The developments of recent years, in which more people working from home and more use is made of individual transport, ensure that we organize our mobility differently.

What are the benefits of a company e-bike, for both your company and for your employees? What forms of leasing are there, and what are the tax purposes? Interesting questions that we answer in this e-magazine.

This magazine gives you a number of useful tools for integrate the e-bike into your mobility policy. And if you would like to learn even more, we look forward to getting in touch with you soon.”

Marijke Bron_silhouette
Country road with fall foliage from above

Advantage 1: Sustainability
Sustainability is an important driver for many companies. And it is also necessary in order to achieve the climate targets set by the government. That's why many companies are investigating the possibility of taking a greener approach to mobility. Fortunately, there are more and more electric solutions as an alternative or complement to fossil fuel cars, with the e-bike being one of them. The e-bike also fits in well with existing mobility solutions.

Vitaliteit

Advantage 2: Vitality
Many studies show that employees who exercise half an hour every day are fitter, less often ill and more mentally resilient. In short: exercise is healthy! Employees who come to work on an e-bike will have already been moving around a lot, even before the working day begins. And after a busy working day, there is nothing better than cycling off and clearing your head, which is why being and staying healthy is a good reason for employees to get on their bikes.

Bjorn Staps / Phenster

Advantage 3: Costs
Mobility is a major expense for many organisations. Fuel costs in particular are high. It is easy to save on this cost item by introducing the e-bike as an alternative or additional means of transport. But you can also save on other points with the e-bike. The additional tax on an e-bike is relatively low and it saves a lot of parking costs. Moreover, sick leave goes down if employees are and stay healthy.

How do you facilitate e-bike use?


If you want to establish an e-bike scheme, you can do this in a variety of ways. We are happy to tell you more about the various (lease) types and their features.

Business lease (‘company bicycle’)

With a business lease contract, the employer enters into the lease and makes the lease bike available to the employee for business trips and/or commuting. Once the lease bike is taken home, the tax authorities assume private use and the employee pays 7% gross tax addition on the set consumer recommended price of the lease bike and the included accessories. The employee may use the e-bike privately without limitation.

It is a full operational lease contract. So the employee rides an e-bike for a fixed amount per month, including insurance, service and maintenance, a replacement bicycle in case of repairs, and roadside assistance.

Private lease bike

As an employer, you can choose to facilitate a private lease bike to employees with employee discounts in cooperation with the leasing company. The employee concludes a private lease contract himself. The employee pays a fixed monthly amount for leasing an e-bike. As with a private lease contract for a car, with an e-bike, the contracting party knows in advance exactly what the monthly costs will be and does not have to worry about additional costs for insurance, service and maintenance, a replacement bike in case of repair and roadside assistance. With a private lease contract, the employee does not have to pay an additional taxable benefit and the employer can continue to reimburse travel expenses untaxed.

Reimburse or settle

The employer can reimburse the lease bicycle from a lease or mobility budget, in many cases an own contribution is required, either anyway or in case of a more expensive lease bicycle above the budget made available.

In addition, if the employer cannot or does not want to reimburse the lease bicycle, the employer can offset the lease costs against the gross salary, whereby the employee voluntarily exchanges gross salary (future salary elements) for the provision of a lease bicycle, the employee then pays for the lease bicycle ‘from the company’ himself but has an attractive tax advantage versus purchasing it himself. Many employers then offset the unpaid untaxed travel allowance as an employer’s contribution on the lease bike.

Tax guide for company e-bikes

The purchase of an e-bike is often a considerable expense for employees, which is why a lease arrangement for an e-bike could be most welcome. For employees, the use of a ‘company bicycle’ is also extremely attractive from a fiscal point of view, with the arrangements for one having become considerably more straightforward for employers.

The most important of these are listed here.

7% additional tax liability

As an employer, you can provide an e-bike that the employee can use for private purposes without limitation. Instead of withholding taxes per (private) kilometre ridden, there is now a fixed 7% additional tax liability on the consumer price determined by the manufacturer. This makes the lease bike an attractive option within the mobility policy.

Suppose the employer provides an e-bike with a consumer price of €1,999 including VAT. The annual additional tax liability is then 7% of €1,999, in other words €139.93/12 is €11.66 gross per month. This amounts to and depending on which tax bracket (box 1) applies to the gross monthly salary, around €4.40 to €5.80 net per month.

When is there no additional tax liability?

If an employee uses the e-bike exclusively for business trips during working hours and the ‘company bicycle’ returns to the business after the trip, the e-bike does not have to be taxed and the employee does not pay an additional taxable benefit. However, as soon as the ‘company bicycle’ is used for commuting trips and takes it home, the 7% tax addition is due, the tax authorities then assume that employee also uses the e-bike privately. Private use is unlimited.

Combining with a company car

You are allowed to combine the e-bike with a company car. The additional tax liability percentages remain the same for both the e-bike and the car. An exception to this rule is when it turns out that the employee only uses the car for private purposes. In such cases, the tax authorities may determine a higher additional tax liability for the car.

Processing in the payroll administration

There are three ways to process the additional tax liability for a company bicycle in the payroll administration, with the best solution varying from organisation to organisation.

  1. The additional tax liability is processed in the payroll administration. This leads to an increase in taxed salary, so that withholding taxes are deducted from the pay slip.
  2. The additional tax liability can be processed in the work-related expenses scheme scheme (WKR) of the withholding taxes. This is an attractive option for employees. The WKR has a so-called ‘free margin’ for fringe benefits, which ensures that this salary (the additional tax liability in this case) does not have to be taxed. In 2023 is this free margin 3% on the first €400,000 of the company’s total wage bill. Above that, 1.18% applies. If the free allowance has already been used, a final levy applies to the employer on the amount above the free allowance. This is 80%. If the employee pays a personal contribution for the e-bike, you can deduct this amount from the additional taxable benefit.
  3. Employer and employee can also together opt to include the e-bike in a cafeteria plan. Here, the employee surrenders (taxed) gross salary and receives an e-bike in kind in return. Thanks to the 7% additional tax, this salary in kind is taxed at a lower rate than the surrendered gross salary.
What happens to the travel allowance?

When an employee uses a business lease bicycle provided by the employer (‘company bicycle’) for commuting, it is considered ‘transport on account of the employer’. For the kilometres made with the ‘company bicycle’, the employee cannot receive a tax-free travel allowance.

For trips on days when the employee does not use the ‘company bicycle’ to come to work, but uses his own transport such as his own car or public transport, a tax-free travel allowance may be paid (taxed at a maximum of 21 eurocents per kilometre). However, the employee and employer must be able to prove the commuting by own transport.

No additional taxable benefit

Employees who use a self-purchased, or private lease bicycle for commuting trips do not pay an additional taxable benefit. However, they can receive a tax-free travel allowance (of up to 21 eurocents per kilometre) for commuting trips with this e-bike.

Also, no additional taxable benefit is due if a ‘company bicycle’ is used exclusively for business trips within working hours and the bicycle is returned to the company at the end of the working day.

shutterstock_1860111493 (FILEminimizer)

For commutes up to 22km, an e-bike is a good alternative to a car

E-bike business or private lease?

What are the differences in costs for employers and employees in the case of a business lease bike (‘company bicycle’) and a private lease bike?

Business lease
With business leasing, the employer pays a gross lease amount. The amount includes maintenance, service and insurance costs. In this case, the employee pays 7% gross tax addition. The employer adds this amount to the salary. On this, the employee then pays monthly tax.

We describe below several scenarios on how to divide business leasing costs between employer and employee within your mobility policy.

Scenario 1:

  • Costs employer; costs are paid in full
  • Employee costs; there is no contribution to lease costs

Scenario 2:

  • Costs employer; the costs are partially paid (record in bicycle scheme)
  • Employee costs; there is an own contribution, often in case of a more expensive lease bike (record in bicycle scheme)

 

Scenario 3:

  • Costs employer; there is no contribution to the leasing costs
  • Employee costs; all leasing costs are settled through gross salary
    (include in employment contract)

Kilometre allowance
The travel costs can be reimbursed untaxed up to a maximum of 21 euro cents per km on days when the employee leaves the ‘company bicycle’ and travels to work by private transport

Private lease
With private leasing, the employee pays a fixed lease amount including VAT. With this form of leasing, no additional tax liability applies.

  • Costs for the employer; can pay travel expenses untaxed up to 21 eurocents per km.
  • Costs for the employee; pays a fixed amount per month. This amount includes the costs for maintenance, service and insurance.

 

Interview with Danielle Kruger, HR director at ALD Automotive

Together with her colleagues in the HR department, it is Danielle’s job to keep employees moving in a healthy and sustainable manner. The e-bike thus plays an important role at ALD Automotive. Danielle talks about her own experiences with incorporating e-bikes into a mobility policy and what employers can do to promote e-bike use.

Why do e-bikes fit so well with a sustainable and healthy mobility policy?

An e-bike is a wonderful addition to your mobility. You can cover much greater distances with an e-bike than with a regular bicycle. The fact is that if you have an e-bike outside your door, then you are more likely to leave your car at home. And cycling is healthy, of course. Though you do have pedal assistance with an e-bike, you still have to power it physically. This has a proven effect on your vitality. An e-bike fits in well with the healthy lifestyle that more and more people are adopting.

What other advantages does an e-bike offer?

Our research has shown that 15 per cent of employees are prepared to (partially) give up their parking space if they can make use of a company e-bike. Of course, that is a very smart way to save on mobility costs.

Other employees indicated that cutting down on their commute time is very important, so my advice is to clearly demonstrate to employees how much time they can save by cycling on an e-bike or speed pedelec.

Who is a company e-bike suitable for?

Some people may still have a certain image of the electric bike. But there are currently such beautiful and sporty models, you can really get away with that. A company e-bike is especially suitable for employees who prefer not to make a large purchase themselves or who have room in their business lease budget (besides the lease car). By leasing an e-bike, they also choose convenience; you have a good bike, insurance and maintenance are included in the package, so no hassle. The e-bike is suitable for employees who like to exercise, but don’t find the comfort of a regular bike sufficient and prefer not to arrive at work sweaty. And finally, we always get the feedback back that people enjoy being outdoors so much.

ALD Automotive recently conducted its own e-bike pilot scheme. Why is that, and what can you tell us about it?

It’s very simple: we also value sustainability and the health of our employees. Furthermore, we conducted a pilot programme so that we could see for ourselves what it is like to commute using an e-bike. We can claim that the e-bike is a good mode of transportation, but you also have to know what you’re talking about, so ‘practice what you preach’.

We reviewed employees’ postcodes to find out how far they live from work. This showed that, based on the distance, 40 per cent of them qualified for an e-bike. They were given an e-bike to use for three months, which the majority of them were very enthusiastic about, despite the fact that the weather was not always great during this period.

What did you learn from this pilot programme and what advice would you thus give to other employers?

Primarily that it is good to let employees become familiar with e-bikes. For the most part, the people who have tried out an e-bike don’t want to go back to using anything else. If the weather is bad then they will logically prefer to choose an alternative means of transport. You could assist employees with such situations by, for example, including rainwear in the offer. But, as far as I’m concerned, freedom of choice also comes into play here. The e-bike fits well into a range of mobility options: you can ride your bike and when the weather is bad you can drive your car or take public transport. That is ideal!

What factors are there to consider when making e-bikes available?

Depending on the distance that an employee has to travel, you can choose between the low-speed and the speed pedelec.

There are also a number of practical issues to consider. For example, is there a good place to store the e-bike and is it safe? Or is there a space at work where the employees can freshen up a bit?

Finally, do you think that employers should do more to promote e-bikes among employees?

Yes, absolutely. It is increasingly important to keep employees moving and vital. And both companies and employees can save costs when they use a leased bike. So we need to entice people to seek alternatives and that can be done by letting them try it. As management, you have a role model role. So get involved yourself, show that you think it’s important and share the stories with each other!

Picture_Marie-Louise

Marie-Louise Daniels, HR Manager at Microsoft
"By offering e-bikes, we not only solve a practical problem, but it also provides us a health benefit. Our employees are more fit, more productive, and more satisfied thanks to the scheme. Leasing an e-bike is not only financially attractive for them, but also helps make their commute more enjoyable. Furthermore, maintenance is also taken care of under the lease agreement, which is very convenient for the employee."

Perry

Perry Wijnhoven, Managing Director at Troy Management
"I've been a satisfied driver of a Stromer e-bike since 2015. The reactions that I get from my customers are very enthusiastic and positive. They think that I am doing a good job as well as being environmentally conscious. You can tell that they appreciate it. When getting an e-bike, I found the high purchase price to a major drawback. ALD Automotive's leasing solution was therefore ideal for me at that time. After 5 years of trouble-free cycling on my ST2, the time had come for a new model. This time an ST3. Leasing an e-bike from ALD Automotive has just worked out really well for me. All I have to do is ride the bike and charge the battery. They take care of the rest."

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Ed Salomons, Manager Maintenance & Damage bij ALD Automotive
"Since summer 2019, I have been going to the office on my speed pedelec, a ride of just under 30 kilometres that takes me about 50 minutes. At the office, I then grab a quick shower and can start the day wonderfully fresh and fit. At first, I had to get used to my place on the road, as did the other riders. This is because a speed pedelec is seen as a moped and therefore often has to use the carriageway instead of the cycle path. Fortunately, with the increase of the speed pedelec in traffic, acceptance has now improved."

Step-by-step guide

Are you convinced about the benefits of the e-bike? What can you do next to successfully implement e-bikes into your mobility policy? A short, step-by-step guide:

1. Analyse commuting distances and the needs of employees

As a company, it is easy to gain insight into your employees’ commuting distances by looking at which postcodes they live in. You can develop a plan based on this information.

Commutes of up to 10 to 15km can easily be covered on an e-bike. For commutes in excess of 15km, time also becomes a factor and the speed pedelec is a better choice. Some employees even cover up to 40 km on the speed pedelec. The latter cases are exceptions, but based on employee profiles, a suitable solution can be found for everyone.

It is also advisable to gain insight into the needs of employees by conducting a short survey, for example. In this way, you can also take their wishes into account in your proposal.

2. Facilitating e-bike use in general

Providing a ‘company bicycle’ is one thing. But it is also advisable to think about additional facilities. For example, it makes things easier if the e-bike can be stored safely, there are charging points at the office, and if there are perhaps facilities for freshening up or even showers available for your employees. Furthermore, look carefully at the target group. In general, Dutch people already own a bicycle. But if you employ a lot of expats, it is important to offer them an attractive bicycle plan.

3. Start an incentive programme

During major changes and transitions, it is easier to change behaviour. Employees are more receptive to new habits and initiatives and will therefore now be more open to a company bicycle. Others may need a bit more persuasion or colleague ‘ambassadors’ to go before them.

What can you do to encourage employees? For example, by offering a higher travel allowance per km for cycling than for driving (untaxed maximum 21 euro cents per km). There are also several apps that encourage employees to take the bike because they can see in real time the health benefits it gives them.

4. Take the time for the fiscal aspects

When deploying lease bikes, you can choose from various lease forms, the business lease (‘company bike’), a facilitated private lease (with staff discount) or a temporary (flex) lease bike. Each form has its own tax regulations. Set aside enough time to compare the tax pros and cons. And test your final bicycle plan with a tax expert so that you are well prepared.

Some of the lease offerings
  • stromer_ST3_e-bike-2
  • riese_e-bike-3
  • qonqer_e-bike-3

Are you interested or would you like to find out more?

ALD Automotive will be happy to advise you about the possibilities of leasing an e-bike. You can contact our leasing consultants at info.nl@aldautomotive.com or by calling +31 (0)20 658 70 00. We will be happy to help you.

Or why not take a look at our full range of lease offerings?

Mobility
is changing

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