Do you use your bike to visit clients, make deliveries, or pick up supplies for your sole proprietorship? Good for you! But what about the bicycle allowance for self-employed individuals running a sole proprietorship?
We’ll cycle through it for you in a clear way.
What is a bicycle allowance?
The bicycle allowance is a kind of “expense reimbursement” that you, as a self-employed person, can grant yourself when you use your private bike for professional purposes. Think of trips to clients, suppliers, or even a coworking space where you work.
Can I, as a sole proprietorship, claim that bicycle allowance?
Yes… but only under certain conditions. Here’s the difference:
1. You use actual costs (like most sole proprietorships)?
Then you are not allowed to claim a bicycle allowance. Why not? Because you already record your actual costs in your bookkeeping, such as the purchase price of your bike, maintenance, replacement parts, and so on.
You can either deduct your real costs (which is usually more advantageous for self-employed individuals) or choose the flat-rate system under which you may apply the bicycle allowance, but not both.
2. You use the flat-rate scheme?
Then you are allowed to claim a bicycle allowance. Since you don’t prove your costs with invoices, the law lets you apply that flat-rate bicycle allowance instead.
Be aware: the flat-rate scheme is usually not advantageous for self-employed people, because you then cannot deduct any actual costs, not even for other items like internet, work materials, phone, etc. That’s why most self-employed individuals choose the system based on actual costs.
As of 2024, the allowance is €0.35 per kilometer, up to a maximum of €2,500 per year.
And the good news: this allowance is exempt from both taxes and social security contributions.
Can I deduct the actual costs of my bike?
Yes! And that’s often a better deal. If you choose to work with actual costs, you’re allowed to include the real expenses of your bike in your bookkeeping, as long as it’s for professional use.
What can you deduct?
- ✅ Purchase of your bike (you depreciate this over several years)
- ✅ Maintenance and repairs
- ✅ Insurance for your bike
👉 Do you also use your bike privately? Then you only deduct the business-related portion. An estimate is fine, as long as it’s reasonable (e.g., 60% work / 40% private? Then you deduct 60% of your costs).
What’s most advantageous?
For most self-employed people, the answer is simple:
✅ Actual costs are generally more beneficial.
⛔ The flat-rate system (and thus the bicycle allowance) is rarely attractive, unless you have very few professional expenses.
Doing a bit of calculation or consulting your accountant can help you make the right choice.
Important tip 💡
Whichever choice you make: keep your proof well organized. Invoices, maintenance receipts, a mileage log if you’re using an allowance, etc. It always needs to be defensible in case of an audit.
In Dexxter, you can easily upload attachments or add a comment to an expense.
Short summary
| Cost system | May I claim bicycle allowance? | May I deduct actual costs? |
| Actual costs | ❌ No | ✅ Yes |
| Flat-rate system | ✅ Yes | ❌ No |
