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My understanding is that, bikes for riding to work on are a tax deductable purchase & leasing them to employees with a nominal buy back cost at the end, is a way to encourage companies & individuals take up the green travel thing.
The £1000 limit thing is due to some sort of credit licencing spooge.
What if, however, a particularly generous employer were to purchase a bike for lets say £3000 as a company asset & let any tom dick or harry (obviously were talking about one person in the real world) use it for commuting foc.
Could the Vat be claimed back on the whole £3K?
Question from a company director cyclist, wanting a bike VAT free instead of a bonus.
Try asking your accountant/accounts dept.
I did the C2W scheme and made the payments back as a lump sum from dividend's at the end of the year so all it cost me was the tax & NI at the dividend rate which was less than my PAYE rate. This will only work if you get dividends mind 😕
Oh and to raise the limit above the £1k mark on the C2W your company has to have a consumer credit licence as it becomes regulated lending or something similar.