Sell my electric bicycles to my business for commuting

[BolshieBastard]

I think I need two company cars just in case one is out of fuel or water in the washer bottle etc when I need to go to see clients.

[jamesbrown]

No, the C2W scheme is slightly different but based on the same exemption that exists for bicycles specifically.

The rules regarding use are the same though.

EIM21664 - Particular benefits: exemption for bicycles

I'm pretty sure that is the "C2W scheme". It's simply the official guidance, along with EIM21665 and EIM21666. Why would there be separate (identical) pieces of legislation on this? Of course, the legislation may be updated over time, but it's the same fundamental scheme announced in 1999...

[tractor]

...

Hello all,

I live in London and I'm using my electric bicycle to meet my clients. It's cheaper than using the tube and more economical... but it's still quite expensive because there are frequently parts to repair.

I'd like to sell 2 of my bicycles (I have 5) to my company mainly to commute to work. Each of them because they are electric cost around thousand pounds. It's a big chunk but in the long term cheaper than taking the tube.

The tube can be expensed, so why not the bicycles?

ps: I know I'm allowed for 20p per miles travel (I have 6 miles each way daily), but repair cost is higher than that so I'd like to sell it to company

Would that be possible?

Thanks

None of this will wash with the taxman. You may get away with a single bicycle if it meets the definition in the regulations, but that's it.

How is it possible that 5k worth of bikes plus high maintenance and power costs are cheaper than using the tube?

How would having 2,3 or 4 reserve bikes help your plight if you got a puncture on the way to work? You would be better chaining it to a lamp post and going by bus, tube for the rest of the journey. It would be cheaper in terms of lost revenue if you are hourly paid than walking the bike back home, swapping it out and starting over.

Why is your plan any better/cheaper than buying a £150 bike from Halfords and just plain old cycling like anyone else has to do. I struggle to see the benefits unless you are simply looking to write off the costs of an expensive hobby tax efficently.

[TheCyclingProgrammer]

I'm pretty sure that is the "C2W scheme". It's simply the official guidance, along with EIM21665 and EIM21666. Why would there be separate (identical) pieces of legislation on this? Of course, the legislation may be updated over time, but it's the same fundamental scheme announced in 1999...

I'm not entirely sure to be honest, I thought the C2W scheme involved salary sacrifice, but that isn't necessary for the exemption to apply.

Either way, the legislation is quite simple:
Income Tax (Earnings and Pensions) Act 2003

It says "cycle", not "cycles" so if you want to take it literally then I'd say more than one might be pushing it.

[jamesbrown]

I'm not entirely sure to be honest, I thought the C2W scheme involved salary sacrifice, but that isn't necessary for the exemption to apply.

Either way, the legislation is quite simple:
Income Tax (Earnings and Pensions) Act 2003

It says "cycle", not "cycles" so if you want to take it literally then I'd say more than one might be pushing it.

Salary sacrifice is only necessary if the employer wants to recoup the cost of providing the cycle (in which case there is a 1k limit on the hire purchase), but that isn't a requirement. Detailed guidance here:

https://www.gov.uk/government/upload...k-guidance.pdf

Interesting point on the legislation, but I wouldn't interpret it literally. For example, DfT guidance (in the above) states:

"It is possible to loan two cycles to one employee if, for example, that employee needed a cycle at either end of a train journey between their home and place of work."

That said, I think the OP's justification would be really pushing it.

[cwah]

Those who have never owned an electric bicycle wouldn't understand why 2 bikes are required.

The benefits of an electric bike are massive:
- I can travel faster than the tube, especially in central london
- I do not sweat when I arrive to work
- I do not have to pay the overpriced london underground
- I am not affected by train delay or strike
- Commuting to work is definitely faster (by 10 mn). Sometime more depending on where I work. As long as I work in central london, it's faster. No doubts.

Now, the big inconvenients:
- Reparation and maintenance cost are way higher than normal bikes. So having it repaired under the company would save me money on the long term.
- Electric bicycle parts are difficult to find in the UK, they need to be imported from China..... which mean sometime 1 month delay between ordering and delivery time. That's the main reason I need 2 bikes.
- Parts are in general more expensive in the UK than in China, so I most of the time order in China, even when parts are not electric. Brakes pad are usually 50% cheaper oversea...


Does it make sense? Having only 1 bike, if I ever have a battery/motor/electronic issue, I'd be forced to use public transport for a MONTH!


Can anyone help? I can't understand why it's possible to get the oyster cost refunded, but not a cheap, efficient and green way to travel with electric bikes???

[TheCyclingProgrammer]

Either you're not reading anyone's posts properly or you're deliberately being obtuse.

YourCo can buy one of your bikes off you if you want. You might even be able to justify two. But it has to do so at fair second hand market value and you need evidence of this or there will be a BIK charge.

Also - and maybe somebody can confirm this - but as the bikes are second hand you can't claim capital allowances using your annual investment allowance. You can claim write down allowances over the lifetime of the asset.

You might possibly make a small saving on maintenance and repair costs but the saving would be tax at your marginal rate - you are still paying for it in the end.

What else do you need to know?

[Scruff]

Sounds like you have bought Tulip cheap electric bikes in the first place? Just buy a decent new electric bike as a Company asset. There are some exceptional electric bikes on the market now.

[cwah]

thanks.

I already have my bikes, so I'm not going to buy new ones.. so let work out with what I have.

My plan:
Sell my 2 bicycles with associated repair tooling and equipement. It will include battery, charger, spare wheel, specific tools, etc.

All will be part of company assets.

I know the only saving I'd able to do is on corporation tax because I'm on flat rate VAT. But the main benefit is that all new equipment for repair and maintenance will also save on corporation tax.

So basically saving 20% tax. That's not much, but better than nothing.

Is that correct?

Thanks

[TheCyclingProgrammer]

You might be able to treat the tools/parts as an expense and use them to reduce your CT bill.

The bikes themselves are capital assets. They may qualify for AIA but I think it would be caught by the connected persons rule so you'd have to claim write down allowances instead.

For the third time, how do you intend to calculate the true second hand market value of the bikes? And will they be mainly used for commuting?