Reply to: Should I buy bike a through the company or not. Too confused :(

[Lance]

In that case I'd think you are taking the piss, which I believe many situations where expensive bikes are involved are TBH but the door is clearly open for it.

Whilst the door may be open, the term 'main use' is the one likely to cause issues.
Cube Reaction Hybrid SL 500 2019 Electric Mountain Bike | ELECTRIC MOUNTAIN BIKES | Evans Cycles

There's no way I'll use that more for business than pleasure, but maybe if the pleasure use is never for the same journey it's not its 'main use'....

[Lockhouse]

I put a 6K motorbike through the Ltd in the 90's

I put a TVR through the books in the 90s!

[BR14]

FTFY

how do you know i was doing 90Kph ??

you ride a fecking horse?

do you?

[WTFH]

I put a 6K motorbike through horse droppings doing 90

FTFY

[BR14]

I put a 6K motorbike through the Ltd in the 90's

[northernladuk]

What happens if current gig is not within cycling distance, but core part of my limited company's strategy is to find a gig circa 15 miles from home, which I might attempt to cycle if conditions are amenable?

In that case I'd think you are taking the piss, which I believe many situations where expensive bikes are involved are TBH but the door is clearly open for it.

[fiisch]

And insure it as well?

What happens if someone buys a very expensive bike for (cough) business needs and then they change gig where a bike is no longer required? Is it just the need at the time it was bought and anything else after that is irrelevant?

What happens if current gig is not within cycling distance, but core part of my limited company's strategy is to find a gig circa 15 miles from home, which I might attempt to cycle if conditions are amenable?

[Maslins]

And insure it as well?

What happens if someone buys a very expensive bike for (cough) business needs and then they change gig where a bike is no longer required? Is it just the need at the time it was bought and anything else after that is irrelevant?

If they got a separate bike insurance policy, would be fine to claim it too IMO (assuming the company owns the bike, ie my second option).

Re your 2nd para, well, no different to buying any other asset. If it's their last day at a gig 10 miles away, the next gig is already signed up for and 100metres away (or 100 miles away) so not readily cyclable, then I'd question whether the motive really was for business. If on the other hand it seemed totally legit at the time, but then circumstances change, no issue as far as I'm concerned. If they no longer need the bike and choose to sell it, then of course those sales proceeds go into the company, and are taxable.

[northernladuk]

From a purely financial perspective:
- if you'll be doing lots of business miles on what you're happy will be a cheap bike, buying personally and claiming the mileage will likely work out better.
- if you won't be doing many business miles and want quite a fancy bike, then getting the company to buy it and "lend" it to you tends to work out better. Just be aware it's the company's bike, relevant if you want to sell it on.

And insure it as well?

What happens if someone buys a very expensive bike for (cough) business needs and then they change gig where a bike is no longer required? Is it just the need at the time it was bought and anything else after that is irrelevant?

[Craig@Clarity]

I did Option 3: Didn't bother with any of that for marginal savings on £200 bike and just bought it personally and don't bother claiming 40p/day

There are bigger fishes to fry...

I'd probably agree with you on this. People who go for company bikes tend to be looking at the more costly ones where the frame weighs less than feather but costs £2k+

[sal]

I did Option 3: Didn't bother with any of that for marginal savings on £200 bike and just bought it personally and don't bother claiming 40p/day

There are bigger fishes to fry...

[Maslins]

From a purely financial perspective:
- if you'll be doing lots of business miles on what you're happy will be a cheap bike, buying personally and claiming the mileage will likely work out better.
- if you won't be doing many business miles and want quite a fancy bike, then getting the company to buy it and "lend" it to you tends to work out better. Just be aware it's the company's bike, relevant if you want to sell it on.

[Lockhouse]

I'd say simply have the company buy the bike for you to use. Straight forward purchase, no need for salary sacrifice or buying it personally out of taxed income.

This is what I did. It's a folder only used for company business so no issues with BIK.

[DaveB]

Company buys the bike. Provided it is available for use by all employees there is no BIK to pay.

The company can pay for safety equipment such as helmets, hi-viz jacket, lights etc, but not clothing or other items specific to the individuals using them.

EIM21664 - Employment Income Manual - HMRC internal manual - GOV.UK

[Craig@Clarity]

I'd say simply have the company buy the bike for you to use. Straight forward purchase, no need for salary sacrifice or buying it personally out of taxed income.