I know it's been done before, but am I right that, as a freelance LtdCo contractor who will soon be riding to work, my options are:
a) just buy a bike through the company and use it, and nothing needs to be declared anywhere (e.g. P11D etc)
If so, is it then a company 'asset'? Value written down in subsequent years etc etc...
[b]OR[/b]
b) use a bike I already own (or subsequently buy 'privately') and claim 20p a mile travel allowance?
My accountant recommended option (a). Not got around to it yet though.
Under option a) does your job have to be related to cycling? My thinking is that if you are just using it for commuting isn't that a benefit in kind and hence taxable?
riddoch - definitely not. That's the idea of the scheme - to get people commuting by bike.
Under option a) does your job have to be related to cycling? My thinking is that if you are just using it for commuting isn't that a benefit in kind and hence taxable?
No, according to my accountant. I did it in about 2010 though.
OP - Your accountant could advise whether using the C2W tax break as salary sacrifice might be more economical for you than your option A though.
aye you dont have to be in the bike industry, I discussed the same with my accountant and he said he as I cycled 90% of my working week I could use 90% of the value. sadly then other things came up in life and I didnt purchase. you can still claim the mileage either way, its still mileage youre doing.
20p a mile travel allowance!!!
FFS - is there anybody getting that for travelling by bike??
if you are just using it for commuting isn't that a benefit in kind and hence taxable?
Depends on the commute, contractors here work to the rule of thumb that your first contract when you first start is a commute, once you change jobs after a few weeks/months/years you can list 'home' as your place of work and claim mileage to the 'clients' offices.
I bought and use a bike every day for home visits etc etc
I've got plenty of other bikes for 'my time'.
Ergo, can I simply add the bike to my expenses list, and get it tax free?
I believe I can, but views would be appreciated (yet to arrange a date with the accountant, who of course will hopefully answer this fully!)
DrP
I have had a few through my business. Just put in through the books and Bobs your uncle. I think I am on no.4 now . Two of those built up from frame, Account did raise eyebrows at 2 in one year though. They just don't understand how many bikes you need for all the different types of riding you do. 🙂 If asked I'd say I use in for short journeys to post box. look at jobs, pop to shops etc etc. Saves a fortune on fuel !!!
I bought and use a bike every day for home visits etc etc
I've got plenty of other bikes for 'my time'.
Ergo, can I simply add the bike to my expenses list, and get it tax free?
What's your employment status?
Depends on the commute, contractors here work to the rule of thumb that your first contract when you first start is a commute, once you change jobs after a few weeks/months/years you can list 'home' as your place of work and claim mileage to the 'clients' offices.
Home is place of work on all my contracts. Most of my clients are within riding distance.
gwaelod - Member
20p a mile travel allowance!!!
FFS - is there anybody getting that for travelling by bike??
I used to (working for a walking and cycling charity) but now get 5p per mile. Claimed £2.10 for a 42 mile round trip the other week. I'll be a millionaire before you know it.
I bought a bike years ago through my company. It's just the same principle as buying a car (cheaper hopefully). The amount depreciates each year and is offset against your tax a similar way each year, as with other assets. I can't much remember the fine details, but it's all zero'd out now and my accountant was quite happy with it - after initial wincing at the amount (he didn't realise bikes cost that much). I only put a proportion of it through, as I didn't want to take the piz and get it flagged up.
No experience of bike to work scheme, it didn't exist then.
[i]contractors here work to the rule of thumb that your first contract when you first start is a commute, once you change jobs after a few weeks/months/years you can list 'home' as your place of work and claim mileage to the 'clients' offices.
[/i]
Like all these things, it's not that simple. All the info is on the HMRC website. Simply putting 'home' as your place of work, when it blatantly isn't, will not fool HMRC...
I'm self employed... Tax returns etc etc..
DrP
DrP - If you have sole trader status then I believe you can put it on your exes.
If you have Ltd company status the company could buy the bike and allow you to use it - which could be done via your exes also or via company cheque, bank transfer or card, and it then becomes a company asset.
If you are VAT registered you can claim that back as well as getting to offset cost against tax.
Sole trader here. Commuting to and teaching cycling, working on cycling events. As above accountant says put through exp.