HM Revenue & Customs (HMRC) is set to investigate and make an example of employers that run tax-efficient bike-to-work schemes outside of the rules, according to one tax expert.
Staff must use their bike for at least part of the journey between home and work, or between workplaces, and it is this rule that is being exploited, claims Alastair Kendrick, partner at Bourne Business Consulting.
To ensure compliance, HMRC may go as far as pulling up a couple of large companies on the issue, he added.
But HMRC denies launching a crack-down. A spokesman said: “We are unaware of a specific scrutiny of bike-to-work schemes.”†