Bikes

[b0redom]

Hi All,
I know this has been done before and the general consensus is to buy a bike and expense it.

I already have a bike which I'm planning on selling to my Ltd for a nominal amount. If I do this, can the company pay for it to be serviced, spare parts etc?

I don't really want to splash out on a new bike, I'd prefer to upgrade the one I have.

[northernladuk]

If you know it has been done before why not effing search for the answer then??

Are you sure about the expensing it bit? From what I can see the cycles scheme seemed to be the way to go. The company ownes the bike and gives it to you for a long term loan, same for the safety gear so would say it wouldn't be unreasonable for the co to pay maintenance on their bike then?

Isn't selling an older bike then getting your company to do it up taking the piss though? Doesn't look right at all. Woulda thought it was the companies responsibility to get a decent one if they are giving it to an employee. Selling your old one and getting it back renovated for free sounds... odd. Dunno what the exact rule stopping you would be though...

Depends on what prices you are looking at. If this is for a couple of hundred quid I wouldn't bother. If the bike is top end then maybe. You are only saving on the tax remember. Still coming out of your pocket ultimately.

cycle site:forums.contractoruk.com/accounting-legal - Google Search

[b0redom]

If you know it has been done before why not effing search for the answer then??

Because the question I asked has not been asked before, hence posting it. I realise that this response is your opening statement to everything though.

Isn't selling an older bike then getting your company to do it up taking the piss though? Doesn't look right at all. Woulda thought it was the companies responsibility to get a decent one if they are giving it to an employee. Selling your old one and getting it back renovated for free sounds... odd. Dunno what the exact rule stopping you would be though...

Depends on what prices you are looking at. If this is for a couple of hundred quid I wouldn't bother. If the bike is top end then maybe. You are only saving on the tax remember. Still coming out of your pocket ultimately.

The bike is a 'decent one'. It retails new at around £2k. The replacement bits I'm looking at are ~ £1k - new groupset and new wheels. I was considering selling it to the company for a nominal £5 or similar.

If you look at it in terms of a server, it wouldn't be unreasonable for a company to buy a 2-3 year old server for next to nothing and max it out with CPU and RAM. It seems to me that would be a cost effective way of getting a high end bit of kit. Why would this not apply for other company assets?

[MickeyP]

Actually it has been asked before by me:

http://forums.contractoruk.com/accou...ml#post1414874

I didn't get a response from here but my Nixon Williams accountant tells me it's a "no".

[b0redom]

So I guess that the most cost effective way is just to sell what I have and buy a new one through the company.

[JamJarST]

So I guess that the most cost effective way is just to sell what I have and buy a new one through the company.

Now your talking, a nice new Pinerello is only £2300

[northernladuk]

So I guess that the most cost effective way is just to sell what I have and buy a new one through the company.

Pedant hat on here but if you are using the cycle to work scheme the company has to buy it and loan it to you.

Found this which mentions repair by the way..

Faqs - Bike 2 Work Scheme

Last one says

What happens if the bike needs maintenance?
The employee is responsible for maintaining their bike (eg: repairs and servicing). Our Partner Bike Shops will be happy to offer guidance.

Do people really buy 2k bike to use mainly for riding to work? Wouldn't the tax man point out that this type of kit is for enthusiasts who are likely to get considerable personal gain from this? I don't know about push irons but I ride a motorbike and would fail the test as I enjoy riding my bike at weekend and holidays. I wouldn't spend that much money and just use it for mainly work.

[Notascooby]

NLUK - there's two ways - the c2w scheme or a company asset. The second is the way to go.

Obviously this must be offered to all employees, which kind of makes me wish I'd made the wife a secretary to buy 2 bikes.

The issue with selling it from you to your company is proving that its primarily a cycle to work bike but nothing stopping you buying a second hand bike privately and then undergoing repairs, now if that happened to be the very same bike you own then who's to know? I'd recommend repairing the bike at your own cost then buying this newly repaired bike at market value i.e. at £1500 rather than £5.

Last year I not only repaired my bike and had it serviced, I also replaced my protective gear in the form of a nice new Assos jacket and "shiny helmet".

I'm currently looking into replacing my current bike with a new Felt DA3 but will wait for 12/13 tax year.

[northernladuk]

NLUK - there's two ways - the c2w scheme or a company asset. The second is the way to go.

Thanks for the clarrification, some of the other historic threads never came to a conclusion

The issue with selling it from you to your company is proving that its primarily a cycle to work bike but nothing stopping you buying a second hand bike privately and then undergoing repairs, now if that happened to be the very same bike you own then who's to know? I'd recommend repairing the bike at your own cost then buying this newly repaired bike at market value i.e. at £1500 rather than £5.

I guess this is the bottom line.

Last year I not only repaired my bike and had it serviced, I also replaced my protective gear in the form of a nice new Assos jacket and "shiny helmet".

I'm currently looking into replacing my current bike with a new Felt DA3 but will wait for 12/13 tax year.

Holy cow . Not really in to pedal bikes but that is a slick looking piece of kit!!

[b0redom]

Do people really buy 2k bike to use mainly for riding to work? Wouldn't the tax man point out that this type of kit is for enthusiasts who are likely to get considerable personal gain from this? I don't know about push irons but I ride a motorbike and would fail the test as I enjoy riding my bike at weekend and holidays. I wouldn't spend that much money and just use it for mainly work.

Well in a previous contract I was doing 15 miles each way every day on it. A £200 Halfords special wouldn't really have cut it. At the weekend, having covered ~ 150 miles during the week, I didn't really have the inclination to go out for a long spin no.