There are also some complications at the end of the period - you are not paying for the bike out of your salary, you are loaning it from your limited company for a fee. At the end of the rental period you need to buy the bike from your company for its 'fair market value'.
If you were to use the bike to actually bike-to-work, you will probably find it much easier and more cost-effective to reclaim mileage. Remember, you cannot both reclaim mileage and buy a bike through the bike-to-work scheme.
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Bike To Work Scheme?
Other employee friends I know work for companies which run the Cycle To Work scheme (http://www.cyclescheme.co.uk).
This means that the company buys the bike, but it is taken out of your pay every month but you don't eventually pay tax, VAT etc on it, and you can save about a third.
I am looking at buying a bike for personal use (as people I know who are on the scheme don't have to provide evidence that they cycle to work) however I'm told that it would take me below the minimum wage if the bike is subtracted from my salary.
Has anyone bought a personal bike through their own limited company using the cycle to work scheme? What are the legalities around this and is it worthwhile as the sole directory of your own limited business?
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