Bicycle Commute Allowance: Who Qualifies and What You Get
Learn if you can claim a tax-free allowance for cycling to work and understand why freelancers cannot use this specific scheme.
This scheme allows workers to receive a tax-free payment to help cover the costs of cycling to and from their place of work.
Who it's for
This allowance is specifically intended for employees who commute via bicycle. It is a benefit for those working under an employment contract. It is important to note that the rules for freelancers are different, and this specific allowance is not intended for the self-employed.
What you get
If you qualify, you can receive a tax-free allowance known locally as a reiskostenvergoeding. This is a payment intended to offset the expenses and effort associated with cycling your route to and from your workplace. Because it is tax-free, you receive the full benefit of the amount without it being subject to income tax.
What it costs you
There is no direct fee to access this benefit, but it is not an automatic right that exists independently of your job. To receive this, your employer must participate in the scheme. You will need to coordinate with your workplace to ensure they are set up to provide this allowance to their staff.
The catch to know
The most important thing to understand is the distinction between being an employee and being a freelancer. If you are working as a freelancer, you cannot claim this tax-free allowance. Instead, you must manage your own travel expenses by including your commuting costs directly into the service price you charge your clients.
How to apply
- Check your employment contract or speak with your manager to see if your company participates in the bicycle allowance scheme.
- Confirm with your company's payroll or accounting department how they calculate and issue the reiskostenvergoeding.
- Maintain a record of your commuting patterns to ensure your employer has the necessary information for their records.