Buying Bicycles through the company

[jonb2010]

If anyone is interested this site explains it all. Basically the cyclescheme body are just paper pushing for large companies. For single Ltd's you can do it direct.

http://www.dft.gov.uk/pgr/sustainabl...2?page=1#a1000

So if I read this correctly I can buy a bike through my LTD company then either loan it or sell it to myself tax free ?

I was going to use the Ride 2 Work scheme from Evans Cycles but this means I don't have to mess around buying vouchers etc.

Has anybody done this succesfully ?

[badger7579]

If anyone is interested this site explains it all. Basically the cyclescheme body are just paper pushing for large companies. For single Ltd's you can do it direct.

http://www.dft.gov.uk/pgr/sustainabl...2?page=1#a1000

[Nixon Williams]

COMPANY CYCLES

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, although this tends to be quite low.

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

[badger7579]

Has anyone actually purchased a bike through the cyclescheme? I want to do this but I'm not sure of a few things. In the FAQ it states:

"Employees paying PAYE, who have a contract that outlasts the duration of the salary sacrifice period are eligible, provided they are over 18 years old, earn more than the National Minimum Wage after the loan repayment has been deducted, and have completed the employer's probationary period (if applicable)"

I assume as probably most of us are on the National Minimum wage topped with Divs that I would need to give myself a payrise to compensate for this, but would it look too obvious to Hector??

Also it states:

"The scheme is available to UK tax payers who pay PAYE. Please note that the self-employed cannot take part in the scheme."

Technically we are not self employed as we are employees of a Ltd company so I guess this does not apply.

Can anyone who hasd done this shed any light??

[TheFaQQer]

I beleive that the scheme allows you to purchase a bike out of your wages before tax is taken (hence the bike is tax free).

You must use it to cycle to work 50% of the time to qualify if my memory serves me right. Not sure who checks up on you tho'.

http://www.dft.gov.uk/pgr/sustainabl...2?page=1#a1024

The exemption removes the tax charge that would otherwise apply to cycles and cyclists' safety equipment loaned to employees provided the following conditions are met

Ownership of the equipment is not transferred to the employee during the loan period;
Employees use the equipment mainly for qualifying journeys;
i.e. for journeys made between the employees home and workplace, or part of those journeys (for example, to the station), or for journeys between one workplace and another
The Cycle to Work scheme is made available generally to employees of the employer concerned and not confined to directors or offered to them on more favourable terms.
The tax exemption only applies when an employee mainly uses the cycle and cyclists' safety equipment for qualifying journeys. A qualifying journey for an employee means a journey, or part of a journey,

between his or her home and workplace, or
between one workplace and another,
in connection with the performance of their duties of employment. So, for example, cycling to and from the station to get to work would qualify. [In this case, 'mainly' means that more than 50% of time using the cycle and safety equipment must involve a qualifying journey.

[DimPrawn]

So if you own a Ltd company, whose registered office is your home address, couldn't you just cycle round the block where you live, five times over the weekend?

"personal services" tax vehicle.

HTH

Gordon.

[Marina]

You must use it to cycle to work 50% of the time to qualify if my memory serves me right. Not sure who checks up on you tho'.

So if you own a Ltd company, whose registered office is your home address, couldn't you just cycle round the block where you live, five times over the weekend?

[lilelvis2000]

Would you not be best looking this up on HMRC website. I think there is something mentioning bicycles there. Your company can buy you one within limits I think, as long as it is majority used for work purposes.

[bellymonster]

I beleive that the scheme allows you to purchase a bike out of your wages before tax is taken (hence the bike is tax free).

You must use it to cycle to work 50% of the time to qualify if my memory serves me right. Not sure who checks up on you tho'.

[The Master]

are you going to use it "Wholey an exclusively" for business use?

If not then it's a BIK

There is an approved scheme for this. Some permie colleagues have used it. Also worth noting that even so it is only a BIK if YourCo gives it to you gratis. If you pay a "market rate" to YourCo to use it there is no BIK to pay.

[Sockpuppet]

http://www.cyclescheme.co.uk/

and

http://www.bikeforall.net/content/cy...ork_scheme.php

[Sockpuppet]

Yeah there is a scheme that allows you to do it as part of your PAYE settlement.

[Fishface]

I belive there is some kind of government scheme to buy a bicycle through your company. It is run with certain bike shops and you have to register etc.

[r0bly0ns]

Hi

Can my LTD company, buy a bicycle through expenses without incurring the wrath of the HMRC

Cheers

James

are you going to use it "Wholey an exclusively" for business use?

If not then it's a BIK

[James McDonagh]

Hi

Can my LTD company, buy a bicycle through expenses without incurring the wrath of the HMRC

Cheers

James