Bike leasing offers a selection of different bicycle types to meet the individual needs and preferences of users. The leasing process is flexible, allowing for a wide range of bicycles – from traditional city bikes to modern e-bikes.

With bike leasing through MYVELO, you have the freedom to choose from a wide range of bicycles that meet your personal needs. Whether a classic city bike like the Verona, a modern e-bike like the Berlin, or specialized bicycles for specific purposes – the selection is large and diverse. It's important that the chosen bicycles meet your individual requirements and are available within the leasing framework.

Bike leasing involves various tax aspects that are important for both employees and employers. Here are the most important points to consider:

1. Taxation of the benefit in kind

• Monetary benefit: If an employee leases a bicycle or e-bike through their employer and also uses it privately, this creates a benefit in kind that must be taxed.
• 0.25% rule: Since 2020, the 0.25% rule has applied to bicycles and e-bikes. This means that 0.25% of the bicycle's gross list price is taxed monthly as a benefit in kind. This significantly reduces the tax burden compared to the previous 1% rule.
• Calculation example: For an e-bike with a gross list price of €4,000, the taxable benefit is €10 per month (0.25% of €4,000). This amount is added to the employee's taxable income.

2. Salary conversion

• Salary conversion: Bike leasing is often implemented through salary sacrifice. In this model, a portion of the gross salary is converted into a lease payment.
• Tax advantages: Salary conversion reduces taxable income, resulting in a lower tax and social security burden.
• Cost distribution: Employers and employees can divide the leasing costs differently. It is also possible for the employer to cover the entire leasing cost.

3. Tax exemption for employers

• Bicycle leasing as a business expense: The employer can claim the lease payments as business expenses for tax purposes. This also applies to any service and insurance packages.
• Bicycles for company use: If the bicycles are used exclusively for professional purposes (e.g. for business trips), the taxation of the benefit in kind is completely waived.

4. VAT

• Input tax deduction: Employers can claim the VAT included in the lease payments as input tax, provided they are entitled to deduct input tax.
• Private use and VAT: For private use of the bicycle by the employee, the employer must, however, tax the private usage portion. This is usually done via payroll deduction.

5. Transfer to third parties

• Use by family members: Even if the leased bicycle is used by family members of the employee, the tax treatment remains unchanged, as the benefit in kind is already taxed at the employee's level.

6. Funding and grants

• Regional funding programs: Some regional subsidy programs support the purchase or leasing of bicycles and e-bikes. These should be checked individually.
• Tax incentives: Employers can grant tax-free subsidies for the use of public transport and bicycles, provided these are within the framework of a job ticket.

Bike leasing offers various tax advantages for both employees and employers. The taxation of the benefit in kind according to the 0.25% rule, the options of salary conversion, and the tax deductibility as business expenses make bike leasing an attractive option. It is advisable to discuss the individual tax implications with a tax advisor to achieve maximum tax efficiency.

At the end of the lease term, the lessee has several options, depending on the contract terms and the leasing provider. Here are the most common possibilities:

1. Purchase of the bicycle

• Residual value purchase: Often, there is the option to buy the bicycle for its residual value. The residual value is an amount stipulated in the contract that reflects the bicycle's current value at the end of the lease term.
• Purchase option: The lessee can choose to purchase the bicycle by paying the residual value. This allows them to own and continue using the bicycle permanently.

2. Returning the bicycle

• Return policy: If the lessee does not wish to purchase the bicycle, it must be returned in a condition specified in the contract. It is important that the bicycle is free of major damage and in good working order.
• Condition assessment: The leasing provider will inspect the bicycle and assess its condition. Any damage beyond normal wear and tear may incur additional costs.

3. Lease extension

• Contract extension: Some leasing providers offer the option to extend the lease agreement. This can be useful if the lessee wants to continue using the bicycle without buying it.
• New terms and conditions: The terms and conditions for the contract extension may differ from the original ones and should be carefully reviewed beforehand.

4. Conclusion of a new lease agreement

• Lease a new bicycle: The lessee can also conclude a new lease agreement for a different or a new model. This offers the possibility of always using a modern and up-to-date bicycle.
• Return and new beginning: The old bicycle is returned, and the new lease agreement comes into effect, often with similar financial terms as before.

Important points to consider when returning items

• Condition assessment: The condition of the bicycle upon return is crucial. Normal wear and tear is generally accepted, but major damage or missing parts may incur additional costs.
• Documentation: It is helpful to document the condition of the bicycle before returning it to avoid any potential disputes.
• Service and maintenance: Regular maintenance and care during the lease term can help keep the bicycle in good condition and avoid additional costs upon return.

Summary

At the end of the lease term, the lessee has several options: purchasing the bicycle for its residual value, returning the bicycle, extending the lease, or entering into a new lease agreement. Each of these options has its own advantages and disadvantages, and the decision depends on the lessee's individual needs and preferences. It is important to carefully review the contract terms and, if necessary, consult with the leasing provider or a specialist advisor to make the best decision.