[Closed] Self employed and putting you bike 'though the books'?

i have a few friends that do it .

one is a joiner and so lists it as "used it to deliver bills , go to the post office and do site inspections rather than use the company van for short trips"

anothers an architech and he uses it for similar purposes

another owns a garage - he actually does use his for going to the motor factor to get bits

I did it years ago, self employed IT contractor with a LTD company at the time.
The Company purchased a Rockhopper Pro for £1000 for me to use as a commuter to work, as I didnt want to commute on my good bike.
No issues at all with doing this at the time, cleared it with the accountant first though.

rather than put the bike through the books I think Mrs S pays me 10p per mile for my 2x4mile one day a week commute. Rollin' in it.

I am self-employed and ran this past my accountant. She was of the opinion that my work day started when I entered my work premises and ended when I left them, i.e. I wouldn't be able to claim back anything to do with my commute regardless of what vehicle I used (this is different to Shak's situation because when you are the director of a limited company you aren't actually self-employed). My accountant was only open to the idea of claiming back anything for the bike if it was used for actual work purposes the [i]majority[/i] of the time (which it most definitely isn't!) - maybe I need to get a dodgier accountant!

Nothing wrong with doing this but be aware that if/when the revenoo take a trawl through the books, they may see it as a pee take and start lifting the drains up, and nobody wants that...

She was of the opinion that my work day started when I entered my work premises and ended when I left them

people have company cars for getting to work though?

not an expert just getting my stw oar in 😉

not an expert

really.

no reason why a bike cannot be purchased an 'asset' of the business. otherwise if the bike is 'yours' its perfectly acceptable to claim back the 10p/mi rate for business journeys.

people have company cars for getting to work though?

No, they have company cars as a benefit in kind - for which they are taxed, extensively.

I use a bike for local work calls, short errands etc. My accountant's view is that its OK to put bike costs through the books, as long as they are genuinely work related. I have three bikes, one of which gets used mainly for work. Some costs can't be allocated strictly to one bike - e.g. tools, lube, but equally I use the other two for work occasionally, so its not exact anyway. I put some costs through if they seem right, probably less than a third of the total, I think I could justify them of I had to, but I haven't had to so far [fortunately].

I don't pay myself mileage though, don't think I can, not being Ltd.

I do, but as a MTB guide its classed as essential to the job. As are the endless "upgrades".

as a MTB guide its classed as essential to the job

they may see it as a pee

I do, but as a MTB guide its classed as essential to the job. As are the endless "upgrades".

A courier in the States worked out how much extra food he was eating as 'fuel' and claimed for that.

yep, food, energy bars/drinks etc.

I do. I work at home in Bristol and its generally alot quicker and cheaper to get across the city to clients by bike rather than car. In the past I have set aside quite alot of bike stuff against tax.

If you develop things for bikes all those brakes and XTR groupsets can go throught the books too.....

[i]My accountant's view is that its OK to put bike costs through the books, as long as they are genuinely work related[/i]

Utter rot. Part of the change when CtoW came in was that a business could own a bike that was a non-performing asset. Just buy one.

And a business can buy anything, its just how it's used (that affects the taxation). Our (Ltd) business bought a horsebox, which my wife uses privately and then she is taxed on the benefit. Saves taking the money out and paying the best part of 65% in tax (paye, employer/employee NI).

Or you could just claim for a new computer (mine is listed in the books as a 456Ti) 😉

Or you could just claim for a new computer (mine is listed in the books as a 456Ti)

😀

Purchase the bike as a work asset, claim VAT if applicable and the capital allowances so you can offset against your profits. At the end of the day it's up to you to prove that it is used for business to HMRC should they enquire for the benefit of the VAT and Capital Allowances.

As a sole trader Benefit in Kind isn't applicable.

Claim for one bike only and put all expenses for that one bike through the books and claim 10p per mile no problem at all. I used to run a motorbike as a 'company car' as there (at the time, not sure now) no system in place to charge BIK for motorbikes as company vehicles.

I now drive a fully expensed company car, never pay for fuel at all and have a nice £26K Avensis car. I'm on £27K base and my GF is on £18K part time and she comes home with more money than I do thanks to the BIK system...... That said, I could never run a car and do the miles I do privately for anywhere near the amount of tax i pay..

[i] I used to run a motorbike as a 'company car' as there (at the time, not sure now) no system in place to charge BIK for motorbikes as company vehicles[/i]

If the m/c is used purely for work (or commuting if WFH) there is zero tax/NI, all the costs through the company, write off over 12m and you can the VAT back (on new) - I (or more correctly my Ltd company) owns a 1050 Triumph 😀

+1 for self-employed bike guide....

i also keep all restaurant/food reciepts when on tour, as well as hotels etc. all costs incured with regards to biking are taxable. this includes each train ride to get me to the hills; it's for training/scouting purposes.

if only i wanted a new bike, but i don't..... i like mine as it is...

blimey, with all this tax avoidance going on you'd think this forum was populated by tories! 😉

Perhaps you could just pay your taxes and stop lying to get out of it?

A bit of civic spirit?

TJ as long as you dont have an ISA or a Pension I'll let you have that one,

Hi I put not my bike through the books but the Mileage you put through
its about £0.20p per one mile approx But your accountant should advise.

No isa and only superan and pensions trust pensions. I pay my taxes

I pay my taxes

So you really feel that genuine offset of business expense against tax is dodging tax?

I am certain that people make loads of spurious claims as people on this thread do

your allowed to make 10k of claims for capital assets each year and if you can demonstrate that you use it for x y or z % then you can claim. Got a plumbing mate who has a 911 in his garage with a sticker in the windscreen..

as do I

[i]No isa and only superan and pensions trust pensions. I pay my taxes [/i]

So do I, and follow the rules as created by HMR&C...