Sell my electric bicycles to my business for commuting

[Boo]

This has been explained over and over again. But one more time, for the cheap seats:

There is nothing wrong with putting a bike through. Putting any more through is taking the piss, though. There's only one of you. Your argument for needing two electric bikes holds absolutely no weight.

You are wrong.

From the cycle-to-work-guidance.pdf notes on the gov.uk website :

There is no limit on the total value of the equipment including the cycle. 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.

Why do people here make such a song and dance without even bothering to check their facts first ? GillsMan ?


Anyway, the only significant issue I see with the OP's suggestion is that the value of secondhand bikes is rather unlikely to be anything like 80% of the new cost. I would think that the safe figure would be as per the update to the guidance notes above, also available from gov.uk here:

Boo

[Boo]

...Apology to insist, but can it be considered as tax evasion or benefit in kind if it's only used for business purpose?

No, as per my post and links above, it's legit provided you have a reason, and provided your sale/purchase to YourCo is bona fide and at or below the market value. Personally, I'd buy new rather than risking it.

Boo

[JRCT]

... 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's a completely different example to the one the OP gives. If I work from two separate offices, it's perfectly reasonable for me to have a desk to work from in each office.

But if I have one office, I don't have a spare desk in case the first one catches fire.

The OP is making one journey on one bike. Only one bike can be used on any given journey. In the specific (and only) example that you've quoted, there's legitimate use of two bikes for the each part of a whole journey.

[TheCyclingProgrammer]

God, why is this thread still going?

[GillsMan]

You are wrong.

From the cycle-to-work-guidance.pdf notes on the gov.uk website :



Why do people here make such a song and dance without even bothering to check their facts first ? GillsMan ?


Anyway, the only significant issue I see with the OP's suggestion is that the value of secondhand bikes is rather unlikely to be anything like 80% of the new cost. I would think that the safe figure would be as per the update to the guidance notes above, also available from gov.uk here:

Boo

Nope, I am right, hahahaha. The OP is not talking about having two bikes for either end of a journey. He's talking about two bikes in case one breaks down. Get your own facts straight maybe?

[cwah]

Answer to HMRC is simple basic math:
- Let say I have 1 bike only, and let consider I have 5 majors incident a year (typical for ebikes), which would clamp me down for at least 1 week and some more time for a total of £200. Let's add £200 in repair cost + £100 for super quick shipping because I can't wait for 1 month for the item to arrive.

So in 2 years with a bike valued at £1000, £200 repair cost a year, £200 in major incident a year and £100 for quick shipping, I have a total cost of £1800. However, my bike will still hold half of it's value, which is £500. So my total cost in 2 years is £1500.

- Now, let say I have 2 bikes, each of them worth £1000 and add £200 in repair cost a year and no tfl charge.
In 2 years time, I have 2* £1000 bike initial value + £400 repair value - £1000 remaining bike value = £1400

So yes, it is actually saving me money to have 2 bikes compared to one. And as 1 year of TFL in zone 1-2 cost £1284, with 2 bikes I'd have already have my money back as they will still hold 50% of their value, whereas with the TFL it's money lost.

Same as buying property, it's an investment. I invest in electric bicycles because it's quick, fast, cheap (way cheaper than TFL in the long term) and I can do long distance without sweating on it.


Does that answer the questions of people questioning the cost of electric bicycles? It's cheaper than TFL by miles.

[eek]

You think HMRC will care about that simple maths you either fit into their rules or you don't

[mudskipper]

Answer to HMRC is simple basic math:
- Let say I have 1 bike only, and let consider I have 5 majors incident a year (typical for ebikes), which would clamp me down for at least 1 week and some more time for a total of £200. Let's add £200 in repair cost + £100 for super quick shipping because I can't wait for 1 month for the item to arrive.

So in 2 years with a bike valued at £1000, £200 repair cost a year, £200 in major incident a year and £100 for quick shipping, I have a total cost of £1800. However, my bike will still hold half of it's value, which is £500. So my total cost in 2 years is £1500.

- Now, let say I have 2 bikes, each of them worth £1000 and add £200 in repair cost a year and no tfl charge.
In 2 years time, I have 2* £1000 bike initial value + £400 repair value - £1000 remaining bike value = £1400

So yes, it is actually saving me money to have 2 bikes compared to one. And as 1 year of TFL in zone 1-2 cost £1284, with 2 bikes I'd have already have my money back as they will still hold 50% of their value, whereas with the TFL it's money lost.

Same as buying property, it's an investment. I invest in electric bicycles because it's quick, fast, cheap (way cheaper than TFL in the long term) and I can do long distance without sweating on it.


Does that answer the questions of people questioning the cost of electric bicycles? It's cheaper than TFL by miles.

According to the HMRC guidance, the fair market value after 2 years is 17%. Which means if yourCo buys a bike for £1000, after 2 years they can sell it to you for £170. You'd be daft to argue it's still worth £500.

Why don't you ring HMRC and ask them? It's clear you're not going to get an answer you're happy with here.

[Scruff]

Why don't you buy a Harley Davidson, sell it to your Company and call it an electrically started motor bicycle? Claim it to be an Eco Twaddle and apply to the European Union for a non repayable grant. Tell HMRC that you are a rocket scientist and deserve special treatment under the Official Secrets Act and that you are Walter Mitty.

[eek]

Why don't you buy a Harley Davidson, sell it to your Company and call it an electrically started motor bicycle? Claim it to be an Eco Twaddle and apply to the European Union for a non repayable grant. Tell HMRC that you are a rocket scientist and deserve special treatment under the Magna Carta and that you are Walter Mitty.

ftfy based on the mad people being discussed in law in action this afternoon.