The Cycle to Work scheme is a tax incentive aimed at encouraging employees to cycle to work, thereby reducing air pollution and improving their general health.
Your company can provide a bike to you on the following conditions:
1. The bike and related equipment must be owned by the company and
2. The bike is used primarily for journeys to and from work.
How does it work?
The company buys the bike and any equipment (helmets, clothing, lights) and claims capital allowances on the expenditure.
The bike is made available to you on a long term loan basis. There is no tax charge provided you meet the two conditions detailed above.
You are not entitled to own the bike at the end of the period. If the company decides to sell it to you at the end of the loan period the sale must be at the fair market value.
Remember that you may need to consider any insurance arrangements.
If you decide to proceed with this option, ensure that you meet the two conditions above and remember to buy the bike in the name of the company.
Alan
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Reply to: Buying a bicycle through my own ltd
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Previously on "Buying a bicycle through my own ltd"
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I know the Expenses and Benefits tax guide 480 has a small section about bikes:
The benefit of bicycles and/or cyclists’ safety equipment (or vouchers to obtain these) lent to employees provided that:
•such bicycles and equipment are available generally to employees, and
•the employees’ main use of the bicycles or equipment is for journeys between home and their workplace, or between workplaces.
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this has been asked before i believe and I'm almost certain the answers are "No" and "Not worth the hassle"
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Buying a bicycle through my own ltd
Hi,
I am thinking of getting a new bike to cycle to work with, can i just pay it through the business account?
Is it possible to use the cyclescheme and is it worth it for a 1 man band?
Cheers.
paul.Tags: None
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