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Remember that it is tax law we're dealing with here, logic and facts aren't relevant
ftfy 🙂
People are susceptible to non-monetary incentives, ones which need investment from an employer but don't attract BIK tax. Secure bike storage, changing/showering/clothes drying facilities, even free loan of a commuting bike and certain associated equipment. By the time your employer has lent you a bike, helmet, reflective rain jacket and lights, you're better off than getting a taxable 20p/mile and buying that stuff yourself.
Remember that it is 'People' we're dealing with here, logic and facts aren't relevant