Cycle to work scheme question

[Boo]

Hi,

I am currently working away and am lodging a couple of miles from my workplace. I'm currently walking the journey but was thinking of buying a bike to cycle in.

I have downloaded and read the Cycle to work scheme guidance from this website and have a few questions :

1. The site says "There is no limit on the total value of the equipment including the cycle...", so I can spend a grand on the bike and a few hundred on bit and it's all allowable without a bik, right ?
   
2. I don't want to do a salary sacrifice, seems pointless under the circs (typical Ltd Co contractor), correct ?
   
3. Under the Annual Investment Allowance (AIA) MyCo can write off 100 per cent of the costs in the first year (ie 2014-2015), right ?
   
4. MyCo buys the bike and lends it to me, right ? And according to EIM21667a after a year it can sell it to me for a simplified vluation of 25%, or else the real value, right ?
   
5. There will be no money passed between myself and MyCo, so what's all this about a consumer credit agreement and licence ? Can't MyCo lend me a bike without it being a credit agreement ? The bike+bits I am looking at will be IRO £1300 all in...
   
6. If the £1000 limit does apply then does it include VAT ?
   
7. The VAT saving looks nice, eh ? Better than 20p a mile for my short journeys...

I know some of this stuff has been covered here before but I just wondered whether any of the laws have changed since austerity etc ?

Thanks,

Boo

[v8gaz]

The VAT saving looks nice, eh ? Better than 20p a mile for my short journeys...

Bearing in mind that you cant claim that if cost of bike is under 2k if you are on FRS, and if you're not on FRS then that is worth a few bob for the typical contractor - more than the VAT saving on the bike - per annum.

[Boo]

Bearing in mind that you cant claim that if cost of bike is under 2k if you are on FRS, and if you're not on FRS then that is worth a few bob for the typical contractor - more than the VAT saving on the bike - per annum.

Hi v8gaz,

MyCo is not on the FRS and I have no plans to change that this accounting year...

Boo

[Archangel]

If it's just for yourself then you don't need to bother with the cycle to work scheme, or the 1k limit. The company can just buy a bike and you can use it, bikes provided to workers are exempt from bik. You can also offset the full cost against corp tax (usual limits apply).

The bike should be used mainly for commuting, but no records are required.

You would, of course, not own the bike, but so what?

[jonskids]

If it's just for yourself then you don't need to bother with the cycle to work scheme, or the 1k limit. The company can just buy a bike and you can use it, bikes provided to workers are exempt from bik. You can also offset the full cost against corp tax (usual limits apply).

The bike should be used mainly for commuting, but no records are required.

You would, of course, not own the bike, but so what?

What Archangel said. Had a company bike for years (and the associated commuting stuff (lights etc) are owned by MyCo. I have other bikes for non commuting activities and everything related to those are paid for personally.

[v8gaz]

Hi v8gaz,

MyCo is not on the FRS and I have no plans to change that this accounting year...

Boo

Are you happy that this is a sensible route for yourco? I appreciate that circumstances differ, but it's rare in our biz for this to be a bad deal.

[PeterF]

You can also offset the full cost against corp tax (usual limits apply).

Is this true? The cost is offset against CT and doesn't have to be purchased from available profit within the company?

[GrumpyContractor]

If it's just for yourself then you don't need to bother with the cycle to work scheme, or the 1k limit. The company can just buy a bike and you can use it, bikes provided to workers are exempt from bik. You can also offset the full cost against corp tax (usual limits apply).

The bike should be used mainly for commuting, but no records are required.

You would, of course, not own the bike, but so what?

Not to be difficult, but can you point me some legislation that proves this?

If its legit I’m going shopping...

[mudskipper]

Not to be difficult, but can you point me some legislation that proves this?

If its legit I’m going shopping...

https://www.gov.uk/expenses-and-bene...-for-employees
http://www.hmrc.gov.uk/manuals/eimanual/eim21664.htm

[GrumpyContractor]

Ta very much!