Cycle to Work - 2024 VAT Update Key Points (for UK Only) FAQ - Before the 2024 VAT Update, Was VAT Included the Cost of the Bike/LOC During the Application Process?

Yes. Previously, VAT was included in the overall cost of the bike/LOC that employees could see in the application process and this has not changed.

Example, if the cost of a bike/LOC is shown as £1,000 to the employee, this would have included VAT, the actual cost of the bike would have been £833.33, the employee would be required to repay the entire £1,000 to their employer.