Cycle to Work - FAQs - After the 2024 VAT Update, Is VAT Still Included in the C2W Application Process for Employees? (for UK only)

Yes, VAT will be factored into the overall cost of the bike to employees.

For example, if a LOC was worth £1,000, this will include VAT and 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.