No, the VAT update does not affect the monthly repayments as the employee's agreement before and after the change is the same. They applied for the cost of the bike previously £1,000 (which incurred VAT for the employer) and they repaid them £1,000. Now, the cost of the bike is still £1,000, and therefore, they repay their employer £1,000. The difference is that there is no VAT to the employer - it is just included at the till.
Cycle to Work - 2024 VAT Update Key Points (for UK Only) FAQ - Does the VAT Update Impact the Repayments That the Employee Is Required to Repay to the Employer?
