E-Bikes for Businesses
E-bikes are bicycles equipped with an integrated electric motor and battery. This motor assists the rider’s pedalling, making cycling less effort-intensive. While they still require pedalling, the electric assistance can provide a boost, especially when climbing hills or covering long distances.
There are 3 main types of e-bikes:
- Pedal-Assist (Pedelec) – These provide motorised support only when the rider is pedalling.
- Throttle-Controlled – These operate more like scooters, providing power at the push of a throttle.
- Speed Pedelecs – These high-powered versions of pedal-assist bikes achieve higher speeds, but stricter regulations govern their use.
To be classified as a bicycle and not a motor vehicle, an e-bike must:
- Have pedals that can propel it.
- Have a motor with a maximum continuous rated power of 250 watts.
- Provide assisted speed only up to 15.5 mph (25 km/h).
Tax Benefits through the Cycle to Work Scheme
The Cycle to Work Scheme allows employers to provide bicycles and e-bikes to employees as a tax-free benefit, therefore reducing National Insurance contributions. To qualify, employers must make the scheme available to all employees, and employees must primarily use the bike for commuting.
For example: An employee on a £30,000 salary could save approximately £1,000 on a £2,000 e-bike over a year, depending on individual tax rates and the specifics of the salary sacrifice arrangement.
Costs and Sustainability
E-bikes have lower maintenance and operational costs compared to company cars, and they can reduce expenses related to parking and fuel. Additionally, they produce zero tailpipe emissions, contributing to reduced carbon footprints when replacing car journeys.
Insurance and Liability
Although the law doesn’t require insurance for standard e-bikes, businesses should obtain coverage to protect against potential liabilities. This includes Public Liability Insurance to cover accidents involving third parties and Employer’s Liability Insurance if employees use e-bikes during work.
However, UK law classifies Speed Pedelecs as mopeds; requiring owners to register them, obtain insurance and hold a valid driving licence. Riders must also wear a helmet.
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