Bicycles and tax
Discussion
I was just considering replacing my bike, I don't use it much, for commuting to the station, and sometimes avoiding city centre parking charges !
I've just realised that there are actually some tax incentives to this, I'm a sole director, LTD company so I'm not sure how this applies if at all to me, but can anyone answer the following;
1) Is a bicycle 100% tax deductible as a company asset (if so I assume it has to be new)
2) I see something about 20p per mile allowance for employees, could I apply this ?
Thank you
I've just realised that there are actually some tax incentives to this, I'm a sole director, LTD company so I'm not sure how this applies if at all to me, but can anyone answer the following;
1) Is a bicycle 100% tax deductible as a company asset (if so I assume it has to be new)
2) I see something about 20p per mile allowance for employees, could I apply this ?
Thank you
NorthDave said:
I dont think you can charge milage for a bike!
Yes you can - Work out the value
To calculate the ‘approved amount’, multiply your employee’s business travel miles for the year by the rate per mile for their vehicle.
Use HMRC’s MAPs working sheet if you need help.
Tax: rates per business mile
Type of vehicle
Bikes 20p
Cycle to Work sound like what you want. There are a number of providers that do a bit of the legwork for you, but there's really no need if you're happy to DIY.
https://www.gov.uk/government/publications/cycle-t...
Effectively the employer buys it without VAT, the employee pays for it out of pre-tax salary (like childcare vouchers and the like). These days the guidance is for the employer to keep ownership for years 2 and 3 so it can effectively be depreciated to zero before transferring to the employee.
You certainly can claim 20p a mile, but on the same rules as cars - business miles, not commuting to your normal place of employment. I claim it, I'm working for a nice client with showers and bike parking so on the days I ride the 10 miles each way I get £4 towards my bike bits fund.
https://www.gov.uk/government/publications/cycle-t...
Effectively the employer buys it without VAT, the employee pays for it out of pre-tax salary (like childcare vouchers and the like). These days the guidance is for the employer to keep ownership for years 2 and 3 so it can effectively be depreciated to zero before transferring to the employee.
You certainly can claim 20p a mile, but on the same rules as cars - business miles, not commuting to your normal place of employment. I claim it, I'm working for a nice client with showers and bike parking so on the days I ride the 10 miles each way I get £4 towards my bike bits fund.
It's sounding promising, I have no fixed place of work....my office is at home, services are worldwide. I would use the Bike for occasional station use, I can definitely see a use around London, when I can park up just outside the West-End or Congestion charge. The catalyst was a week I have to be in Plymouth in June, I can get a good hotel deal, but it's 6 miles out.....I can even have a pint and wobble back to it.....
One question, (which I know I should address to my own accountant) As a Director of the company, can I claim a mileage as an employee would ?.......(Its a one man LTD company)
Do I get 100% tax relief on a new bike (and before you scoff, I looked at the price of Bromptons this morning....you can pay over 2K for one) !
One question, (which I know I should address to my own accountant) As a Director of the company, can I claim a mileage as an employee would ?.......(Its a one man LTD company)
Do I get 100% tax relief on a new bike (and before you scoff, I looked at the price of Bromptons this morning....you can pay over 2K for one) !
Gassing Station | Business | Top of Page | What's New | My Stuff