Cycle To Work and helmets mid-year, maintenance and repair costs

[SQueeZe]

I have a bike that has been purchased by my own Ltd company a year ago and recorded as an asset on the books and have a few questions:

1. Can I buy a helmet (or other allowable accessories) as needed throughout the year or does it need to be purchased at the same time as the bike?
2. Can I expense a service at my local bike shop to keep the bike roadworthy?
3. My frame requires an expensive repair (~£500), is this an allowable expense?

Reading this document:
https://assets.publishing.service.go...k-guidance.pdf

I don't see anything relating the need to buy the accessories at the same time as the bike (as my accountant believes).

I see that it says that "Replacement parts to keep a cycle roadworthy" are allowed. I'm wondering if frame repair could be considered under this? e.g. they are replacing the top-tube on the frame.

Thanks

[SueEllen]

When I read the cycle to work literature it said you had to buy a bike and accessories so helmet. lights, lock, bike pump at the same time.

https://help.cyclescheme.co.uk/artic...-for-employers

Then you can get a new bike or accessories every 12 months if you want. You can also buy more than one bike at a time as there is now no cap on the amount you can spend.

https://www.cycletoworkday.org/blog/...k-Scheme-Myths


https://www.cyclescheme.co.uk/cycle-...heme-any-price

[SQueeZe]

Thanks SueEllen, but cyclescheme.co.uk is a third party management scheme and is, I believe, different to the limited company just buying the bike and accessories directly.

[northernladuk]

A good detailed summary here...

https://assets.publishing.service.go...k-guidance.pdf

It does state in Q5 page 17

Whilst the cycle remains the property of the employer (or third-party provider) throughout the hire term, the employee is responsible for its appropriate care, maintenance and security

So you can't claim maintenance and servicing.

Page 18 has a list of things you can buy for it.

Two interesting points in that literature though...

4.6 page 9 for eligibility.

The following conditions must also be met:
• An employee must not, at any point during the hire period, own the cycle;
• At least 50% of the cycle’s use must be for ‘qualifying journeys’, i.e. commuting to work purposes;
• The offer of the use of hired cycles must be made available across the whole workforce, with no groups of employees being excluded. This does not necessarily have to be through a salary sacrifice arrangement in each case

How can you have met the 50% rule during lockdown?

And B2 Page 19

All employees must be paid the National Minimum or National Living Wage. Your employee must not sacrifice salary to a level below this minimum (however the scheme should generally be available to all colleagues).

If you are a directory using low salary/high divs to the max limits you won't be paying yourself NMW so won't qualify surely?

[northernladuk]

And try spending 10 seconds looking at the forums and deciding which section to put this in rather than slapping it in the first one you see.... You've picked the wrong one snot nosed snivelling lickspittle.

[SueEllen]

Thanks SueEllen, but cyclescheme.co.uk is a third party management scheme and is, I believe, different to the limited company just buying the bike and accessories directly.

Found it - https://www.gov.uk/expenses-and-bene...l/whats-exempt

[SQueeZe]

Thanks northernladuk. If you spent 10 seconds reading my post you will find that you have sent the same link that I already referenced.

Also, you'll be pleased to know that HMRC temporarily changed the rules due to Covid:
https://road.cc/content/news/cycle-w...ovid-19-280019

Thanks for pointing out the rule about servicing, that's cleared that one up.

Regarding the helmet, page 18 makes it clear that helmets are allowed but my question was whether the helmet needs to be purchased at the same time as the bike.

Thanks

[northernladuk]

Regarding the helmet, page 18 makes it clear that helmets are allowed but my question was whether the helmet needs to be purchased at the same time as the bike.

Thanks

I can't see how it can. Helmets need replacing periodically so to tie it in with the bike purchase doesn't make sense. Can't believe that would be the case.

[SQueeZe]

Agreed - similarly, things that need to be purchased to keep the bike roadworthy (tyres, break pads etc) can't possibly be known at the point you purchase the bike.

Thanks for your help.

[northernladuk]

Agreed - similarly, things that need to be purchased to keep the bike roadworthy (tyres, break pads etc) can't possibly be known at the point you purchase the bike.

Thanks for your help.

Doesn't that come under maintenance though?