Reply to: Bikes

[kyber]

With apologies for resurrecting an old thread ... (does not seem to be addresses elsewhere though more recently)

You are officially using the cycle to work tax break, if not exactly setting up a c2w scheme or using an off the shelf scheme. Part of the conditions of this is that it's open to all employees.

Is this still true? My accountant does not seem to recognise the "buy as an asset" option, taking advantage of the cycle to work tax break, but just keeps saying the limit is £1000.

Also, if there is no salary sacrifice (what HMRC call the Salary Plus option in their cycle to work implementation guide), then surely, as there is no credit being offered, the limit does not apply anyway.

[Notascooby]

Good point re the asset vs b2w but why do I have to offer all employees a bike if I offer one a bike ? I don't have to offer them all a car if I offer one a car, ditto laptops ?

Boo

You are officially using the cycle to work tax break, if not exactly setting up a c2w scheme or using an off the shelf scheme. Part of the conditions of this is that it's open to all employees.

Whether you publicise this is another matter. You don't have to buy everyone a bike, nor do they need to request one but if you have employees and this a perk being offered to one, it must be open to all.

Not really an issue with a one-man-band but I do wish the wife was a company employee so I could get another, erm mean she could pertake i this offer too.

[Boo]

as a ltd you'd never use a c2w scheme, you'd buythe bike as an asset and allow your staff to use it for the company needs. Therefore no limit on spend - the only criteria is that you offer all employees the same facility.

Good point re the asset vs b2w but why do I have to offer all employees a bike if I offer one a bike ? I don't have to offer them all a car if I offer one a car, ditto laptops ?

Boo

[Notascooby]

Price limit for b2w scheme is £1k, no top ups allowed

Boo

That's due to there being credit license implications for companies offering above this (£1K is just plucked out of the air and held as a safe limit not to breach this regulation - although how this fairs with annual season ticket loans I'm not sure?) but as a ltd you'd never use a c2w scheme, you'd buythe bike as an asset and allow your staff to use it for the company needs. Therefore no limit on spend - the only criteria is that you offer all employees the same facility.

[Boo]

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

Price limit for b2w scheme is £1k, no top ups allowed

Boo

[Notascooby]

You'd commute on that setup? I'm considering a set of clip on aero bars, but there's no way I'd want to be navigating traffic on a TT bike like that.

Mine is a TriCross Xpert which I'm considering putting SRAM Force/Shimano Ultegra and some Mavic Kysrium Elites on. Not a cheap upgrade.

I used to commute on my TT bike but its past it now, hence the upgrade, my current bike is a planet-x nanolight so road specific.

Whether I'd do the majority of commuting on the new bike - well that depends upon whom I'm answering, Mr Taxman - of course I am, to anyone else...only when extending the commute into a serious training ride.

[b0redom]

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

You'd commute on that setup? I'm considering a set of clip on aero bars, but there's no way I'd want to be navigating traffic on a TT bike like that.

Mine is a TriCross Xpert which I'm considering putting SRAM Force/Shimano Ultegra and some Mavic Kysrium Elites on. Not a cheap upgrade.

[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.

[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!!

[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]

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.

[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

[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.

[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]

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?