Cycle to work scheme, vat and frs

[Jessica@WhiteFieldTax]

I think it is exempt from BIK, and not subject to 'business use', as long as it is used to get to work (i.e. not restricted by 24 month rule)

https://www.gov.uk/expenses-and-bene...-for-employees

"As an employer, lending or hiring bikes to employees doesn’t count as an expense or benefit - as long as they’re available to all employees and mainly used for getting to work."

So yourCo buys the bike and lends it to the employee, who uses it to cycle to and from work as well as for personal use. No BIK.

Ok, so ive learned something. Makes the cycle to work scheme even less attractive.

[Archangel]

I'm surprised you have emplyees and yet remain under the upper threshold for FRS.

How much do you think picture framers are paid? In halifax?

I wish we were anywhere near the upper threshold.

[Archangel]

FRS%. But the salary sacrifice amount counts towards FRS turnover restriction.

Thanks jessica. Not too onerous then, as I will be saving employers NI. And the cap allowance of the bikes.

[TheCyclingProgrammer]

You could always buy more expensive bikes and reclaim the VAT.

[Archangel]

You could always buy more expensive bikes and reclaim the VAT.

You can only spend up to 1k per bike on the cycle to work scheme (unless you have a consumer credit license) so both staff would have to max this, and buy at the same time from the same shop. Neither of them is in a position to spend more than a few hundred : . Other member of staff is not interested at all.