SE31915 - Travel expenses: general - other Inland Revenue authorised mileage rates - bicycles

For 1999/2000 until 2001/02 employees could use an Inland Revenue authorised mileage rate for calculating the allowable expense of using a bicycle for business journeys. The rate was 12 pence a mile.

Employees could use the authorised mileage rate in the same way as the rate for motor cars, see SE31860.

If the employer paid an allowance to employees who used a bicycle for business journeys, they could use the authorised mileage rate to calculate how much of the allowance (if any) represented a taxable profit.

Employees who did not receive an allowance from their employer could use the authorised mileage rate to calculate an expense deduction under Section 198 ICTA 1988.

In addition, employers could apply for a dispensation, see SE30051, if they reimbursed employees at a rate of 12 pence a mile or less for using their bicycles for business journeys.

Employees did not have to use the authorised mileage rate. If they wished, they could deduct the actual costs of cycling on business journeys, including a proportion of any repairs or replacement parts and capital allowances for some of the cost of the bicycle, see SE36500.

From 2002/03 this has changed. The optional authorised mileage rate has been replaced by an obligatory mileage allowance relief rate, see SE31240. Employees are no longer entitled to deduct actual costs. There is detailed guidance on the new scheme at SE31200 onwards.