We're a small business ourselves and we wanted to find a smart way to help more cyclists get on good bikes. There's a lot of self employed and small businesses that are not able to get tax benefits from Cycle To Work Schemes.
A number of our self employed customers make use of our leasing plans for their bikes as it works out very tax efficient for them. The same applied for small limited companies:
No £1000 limit
Can reclaim the VAT if VAT registered
Can offset 100% of the lease against tax
Seeing as the lease starts at only 65% of the RRP, it means that they can avoid paying about 50% of the costs. Insurance and servicing are added into the monthly payment - again tax deductable.
It also lets them easily change their bike every 2 years if they want to.
Bigger businesses are able to pass on these tax benefits to their employees in a really straightforward way as well without the complication of salary sacrifice schemes, VAT, and changing employment contracts etc.
By the way, the lease can also work out well for regular employees looking for a bike worth over £2k.
If you'd like any more advice, feel free to give me a call on
020 8133 6432 on Monday and I'll be happy to help. Ask for Paul.