Reply to: Cycle to work scheme

[MickeyP]

How about ongoing bicycle maintenance costs if the bike is owned by the company? Claimable?

[Zoiderman]

Got bicycle. Now thinking, the one ltd co bought road hybrid bike. Can ltd justify buying a second bicycle that gets used by me as well?

I'd get a mountain bike this time, so can take different routes to clients (along tow path, sustrans cycle routes etc)

I don't think there's an issue, as it remains a company asset. I have 7 computers, a HDD Camcorder, 2 ipads. It will go down as an asset, I presume, and you'l have to tally it all up when you dissolve your company, sell assets etc.

[richy]

second ltd co bike for same employee?

Got bicycle. Now thinking, the one ltd co bought road hybrid bike. Can ltd justify buying a second bicycle that gets used by me as well?

I'd get a mountain bike this time, so can take different routes to clients (along tow path, sustrans cycle routes etc)

[richy]

My accountant says YES!

http://www.nixonwilliams.com/images/...y%20Cycles.pdf

Good on Nixon Williams!
Fantastic, cheers. rich

[Waldorf]

Hi All

I presume ok for my Ltd co purchase as expense a reflective jacket to wear when on the bike travelling to clients? Also a set of bike-lights are needed.

My accountant says YES!

http://www.nixonwilliams.com/images/...y%20Cycles.pdf

[richy]

Reflective jacket?

Hi All

I presume ok for my Ltd co purchase as expense a reflective jacket to wear when on the bike travelling to clients? Also a set of bike-lights are needed.

Bought some fantastic waterproof "Overshoes" from ebay so my shoes won't get wet if any showers. I'm using the bike most days to client now, will see how far thru winter I get..

Cheers, rich

[h8mmer]

Sell it to your LTD for cost i.e. claim it back on expenses.

As long as it is covered within the allowable time frame to claim back the VAT (your accountant will know what that is) then I cannot see an issue - its what I did with mine.

Sorry, didn't mean claim on "expenses" - just sell it to your company!

[h8mmer]

Damn, I have just bought myself a new mountain bike but I paid out of personal funds .... it wasn't cheap ...

Sell it to your LTD for cost i.e. claim it back on expenses.

As long as it is covered within the allowable time frame to claim back the VAT (your accountant will know what that is) then I cannot see an issue - its what I did with mine.

[JamJarST]

This is precisely what we were advised by the accountant. No mileage allowance, but you get to have a nice shiny new bioke to play with, which depreciates kindly for you to dispose of it when you will.

Damn, I have just bought myself a new mountain bike but I paid out of personal funds .... it wasn't cheap ...

[Zoiderman]

Just buy the bike as a company asset.

This is precisely what we were advised by the accountant. No mileage allowance, but you get to have a nice shiny new bioke to play with, which depreciates kindly for you to dispose of it when you will.

[richy]

Just buy the bike as a company asset.

yep, think I'll have to take that approach as been with current client since 2008..

Does the 2yr rule apply differently if I have two clients? I've got one main client, and a secondary one that I work from a different location with.

[Jeebo72]

Just buy the bike as a company asset.

[JamJarST]

You can go over the £1000 limit - by as much as you want BUT if it exceeds £1,000, you have to get a consumer credit license.

Below that amount you're covered by a group consumer credit license.

You also might want to look at the changes made to the BTWS last August; HMRC have now set a min resale value on bikes (something like 25% of the original cost for anything that cost £500+ new). This may make the scheme no longer worth it - depends how you and your accountant interpret the new rules....

Thanks for that I didn't know you could go over the £1k limit, I did know that HMRC were clamping down on the residual values. The £1k limit was always the problem for me when I was looking at it as a permie, none of my bikes cost less than £1K.

[h8mmer]

As far as I know, you cannot "buy in" your existing bike, it has to be a new bicycle from a recognised and registered supplier up to a value of £1000.

You can go over the £1000 limit - by as much as you want BUT if it exceeds £1,000, you have to get a consumer credit license.

Below that amount you're covered by a group consumer credit license.

You also might want to look at the changes made to the BTWS last August; HMRC have now set a min resale value on bikes (something like 25% of the original cost for anything that cost £500+ new). This may make the scheme no longer worth it - depends how you and your accountant interpret the new rules....

[JamJarST]

Hello

Is anyone on the Cycle to work scheme?

As a UK contractor, can I buy bicycle equipment through Ltd co and save the tax.

Just bought "HUMP" waterproof rucksack cover (already bought the rucksack for biz trip use only). Now I cycle to client on bike with rucksack, and it keeps getting wet through!

Can I "buy in" my existing bicycle to the company?Thanks in advance for any tips. Rich

As far as I know, you cannot "buy in" your existing bike, it has to be a new bicycle from a recognised and registered supplier up to a value of £1000.