Buy a bike just like any other company asset
I investigated this a few months ago. According to http://www.dft.gov.uk/pgr/sustainabl...2?page=1#1001:
"To take advantage of the tax and Class 1A NICs exemption, an employer can simply buy a cycle and cyclists' safety equipment, reclaim the VAT, make use of the capital allowances and loan it to an employee for qualifying journeys to work."
I.e. your company buys a bike and loans it to you. It also covers the cost of lights, helmet, locks, etc. The kit is simply a company asset, just like a photocopier, laptop or whatever.
You're meant to use the bike "mainly" to cycle to work but none of the documents I read defined what they meant by "mainly". Personally, I'm going to use a bike for whatever I want, including cycling to the station
three days a week as part of my journey to work.
The alternative, as mentioned above, is to claim 20p per mile cycled when using your personal bike to get to work. You can't claim 20p/mile when riding your company's bike.
Try working out how much you can claim for your 20p/mile, then compare to how much tax you'll save per year and make a judgement.
Any help with the maths here would be appreciated. (Help with tax maths, that is. I'd hope most of us can multiply the number of miles we cycle by 0.2.)
See the link for more info.
I investigated this a few months ago. According to http://www.dft.gov.uk/pgr/sustainabl...2?page=1#1001:
"To take advantage of the tax and Class 1A NICs exemption, an employer can simply buy a cycle and cyclists' safety equipment, reclaim the VAT, make use of the capital allowances and loan it to an employee for qualifying journeys to work."
I.e. your company buys a bike and loans it to you. It also covers the cost of lights, helmet, locks, etc. The kit is simply a company asset, just like a photocopier, laptop or whatever.
You're meant to use the bike "mainly" to cycle to work but none of the documents I read defined what they meant by "mainly". Personally, I'm going to use a bike for whatever I want, including cycling to the station
three days a week as part of my journey to work.
The alternative, as mentioned above, is to claim 20p per mile cycled when using your personal bike to get to work. You can't claim 20p/mile when riding your company's bike.
Try working out how much you can claim for your 20p/mile, then compare to how much tax you'll save per year and make a judgement.
Any help with the maths here would be appreciated. (Help with tax maths, that is. I'd hope most of us can multiply the number of miles we cycle by 0.2.)
See the link for more info.
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