The new Cheshire West and Chester Council has set an example by being one of the first councils in the country to offer the same business mileage rates for cyclists and motorists, currently 40p per mile for councillors. Such a policy removes the perverse incentives that can lead to staff using their cars when a bike might be the most suitable means of making a journey.
Offering derisory business mileage expenses rates for cyclists often leads to derisory rates of cycling for business purposes!
The Chester Cycling Campaign has prepared the following two resources to support those planning policies for reimbursing cyclists for business mileage expenses:
1) A guidance paper on Business Mileage Business Expenses For Cyclists
2) A Bike Costs Calculator for use in working out the full cost of running various types of cycles
Feel free to download and make use of these files when considering expenses reimbursement strategies for cyclists.
Are there any plans to petition HMRC to make this the rule across the UK? Currently the self-employed can claim 20p/mile for bikes and 45p/mile for car use… Why does HMRC choose to discourage cycling with its tax policy?