So: what is bicycle leasing? Simply put, bicycle leasing is an interesting fringe benefit whereby employees get the chance to lease a bicycle through their company for a certain period. It is available to both blue and white collar employees, as well as civil servants and statutory employees.
Did you know that bicycle leasing is one of the most popular tax benefits in Belgium? You can find out all about it in our blog ‘Bicycle leasing as a popular fringe benefit in Belgium‘.
How does bicycle leasing work?
Making the wage more flexible
Bicycle leasing is possible by making your employees’ wages more flexible. As such, employees will often exchange part of their gross wage, end-of-year bonus, other bonuses or holiday days for the use of a bicycle of their choice. As an employer, you are the link in the chain, meaning you can enjoy a tax benefit because you are reducing your taxable income.
As an employer, how much pay your employees make flexible is up to you. For example, you can also set a maximum lease budget based on your employees’ wage or status. Moreover, there is the possibility of a personal contribution if your employees cannot make their wages flexible enough for their lease bicycle. As an employer, you can of course set a ceiling on this personal contribution.
Curious to find out about all the tax benefits you can enjoy as an employer through bicycle leasing? Then definitely read our blog ‘The tax benefits of bicycle leasing at a glance’.
Integration with your cafeteria plan
By the way, did you know that with the o2o-tools you can easily integrate bicycle leasing into your cafeteria plan? What’s more, we are one of the only leasing partners offering comprehensive integrations! Find out all about it in our blog: ‘Bicycle leasing in your cafeteria plan’.
Duration of the lease
Your employees can lease a bike for a period of 36 or 48 months. Is the contract about to expire? Then the employee returns the bicycle or takes it over, generally at a residual value of 16%.
More than just a bicycle
Not only do you get a bicycle through bicycle leasing, but all the services that make cycling a carefree experience too. It’s a kind of all-in package. Employees are coveredagainst theft and damage with their lease bicycle in any case, and there is a service budget of €50 per year.
But for those who want to, employees can really get pedalling carefree by opting to add extra warranty insurance or breakdown assistance to the lease package. Thanks to the full package of these services, bicycle leasing is only more beneficial from a tax perspective.
Why bicycle leasing is so interesting for employees tax-wise? Read about it in our blog: Why does leasing a bicycle through your employer offer so many tax benefits?
Budget-neutral bicycle leasing: the boost your company needs
As a company, you want to remunerate your employees properly, so they are satisfied and rewarded for their hard work. But better remuneration is not always straightforward: sometimes, it means finding a budgetary balance. Bicycle leasing is one of the most popular initiatives for optimising wages, and with good reason! That’s because it is fully budget neutral.
First see and then believe? In our white paper, you will find a sample calculation of how bicycle leasing can be budget-neutral, as well as various other relevant information about offering bicycle leasing.
Download the whitepaper!
The advantages of bicycle leasing for your employees
Bicycle leasing means more than just better remuneration. Bicycle leasing underscores your commitment to sustainable mobility, which can count towards your sustainability score. Moreover, it is an additional asset in your employer branding, increasing your employee retention and satisfaction. That kills no less than six birds with one stone!
And there are a whole host of benefits for your employees too! You can find out more in our blog ‘The six advantages of bicycle leasing for employees’.
