A cyclist and tax question

A cyclist and tax question

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Discussion

heebeegeetee

Original Poster:

28,591 posts

247 months

Wednesday 16th April 2014
quotequote all
I think it's fair to say that PH represents the thinking of the average motorist in the UK, and clearly the average motorist has an enormous obsession going on with tax when it comes to cyclists.

So, a thought has occurred to me. As we know, both Jensen Button and Mark Webber are keen cyclists. One lives in Monaco, one in England.

How can we tell what tax liabilities they respectfully have, and what impact does the ownership of bicycles have on said liabilities?

I only ask because it does seem that an assumption is immediately made by many that a person will be paying less tax if ownership of bicycle or bicycles is involved. smile

thepawbroon

1,146 posts

183 months

Wednesday 16th April 2014
quotequote all
I imagine both of them have been gifted bicycles as part of publicity / sponsorship deals so the relevant tax will be related to Benefit In Kind.

Otherwise, they maybe have purchased them directly therefore have paid the VAT of equivalent.

Least likely, they have acquired the bicycles through their employers' Cycle to Work scheme. Although I don't know of McLaren nor Porsche / Red Bull offer such a scheme. In case, they might have difficulty demonstrating that the cycles were used primarily for commuting to and from their normal place of work.

Can't think of any other relevant tax issues.

smile

kambites

67,461 posts

220 months

Wednesday 16th April 2014
quotequote all
heebeegeetee said:
I think it's fair to say that PH represents the thinking of the average motorist in the UK,
I think that is an extraordinarily rash statement. hehe

Cycling is a decidedly middle-class thing in the UK. I'd be willing to bet that the average cyclist pays more tax than the average driver simply because their average incomes will be higher.

J4CKO

41,284 posts

199 months

Wednesday 16th April 2014
quotequote all
Yeah, since getting a bike I pay no Income tax or NI, all goods I purchase are VAT exempt and the Council empties my bin for free, I got a refund on the £500 VED on my car plus some extra for my trouble.....



Actually, I do avoid some tax as I do the cycle to work scheme, means on the grand they lend you to buy a bike (well, part of a decent one) you dont pay tax/NI, as I never see that money it means it lowers how much Child benefit gets taken back, so a grand minus 42 percent (tax and NI) means I pay back £680, then, over the course of the loan, a grand comes off my salary so I get to keep ten percent of the CB, which on three kids is £226, so that £1000 actually costs me £354.

So, buying a bike like this pays for the VED on my 350Z, so, by cycling, I dont pay any "Road Tax" !



Snowboy

8,028 posts

150 months

Wednesday 16th April 2014
quotequote all
heebeegeetee said:
I think it's fair to say that PH represents the thinking of the average motorist in the UK, and clearly the average motorist has an enormous obsession going on with tax when it comes to cyclists.

-snip-
I think that's nonsense.
There are a few quite vocal people who rant about tax, but the majority of PH and people in general don't use that argument.
Besides, I'd bet the majority of cycling households pay 'car tax' on at least one car.

If you want an interesting discussion try asking about whether cyclists should be insured on the roads and/or licenced.
That's a couple of questions that'll have some interesting opinions.

T0nup

683 posts

199 months

Wednesday 16th April 2014
quotequote all
Cyclists...

Test em... Yes.
Insurance... Absolutely
Tax em... HELL YES!

And frankly, should a cyclist be pulled or caught for anything by BiB, if they are found to be a car driving licence holder, it should be a mandatory 3 points. They should know fking better.

EskimoArapaho

5,135 posts

134 months

Wednesday 16th April 2014
quotequote all
heebeegeetee said:
I think it's fair to say that PH represents the thinking of the average motorist in the UK
This may be the least true thing ever typed on PH.

(And that includes "It's aliens" postings.)

Barchettaman

6,282 posts

131 months

Wednesday 16th April 2014
quotequote all
T0nup said:
And frankly, should a cyclist be pulled or caught for anything by BiB, if they are found to be a car driving licence holder, it should be a mandatory 3 points. They should know fking better.
This is the case in Germany, if you are caught doing something stupid on a bike the police can endorse your driving license (or put points on your future license if you don't yet have one).

Snowboy

8,028 posts

150 months

Wednesday 16th April 2014
quotequote all
T0nup said:
Cyclists...

Test em... Yes.
Insurance... Absolutely
Tax em... HELL YES!

And frankly, should a cyclist be pulled or caught for anything by BiB, if they are found to be a car driving licence holder, it should be a mandatory 3 points. They should know fking better.
I agree with all except the tax.

Insurance could be as simple as having an addition to household or car insurance.
The test could be ignored for those with a driving licence, implemented via schools for kids, and any adults without a licence would get a free pass unless they were caught doing something wrong.


Roma101

835 posts

146 months

Wednesday 16th April 2014
quotequote all
Sorry, what is the point being made by the OP? That cyclists should pay some form of tax for owning a bike?

As for tax liabilities, I have a bike and if I had not got it through the Cycle to Work Scheme it would have absolutely no impact on my tax liabilities whatsoever. And even then, it has only saved me a fairly inconsequential amount of money.

I would be very surprised to hear that any F1 driver has got their bike through one of the schemes!




Edited by Roma101 on Wednesday 16th April 14:06

kambites

67,461 posts

220 months

Wednesday 16th April 2014
quotequote all
Bikes would be tax-exempt if they were taxed at the same rates as cars anyway.

XG332

3,927 posts

187 months

Wednesday 16th April 2014
quotequote all
Tax cyclists! And those bloomin tax dodging electric and low emission cars.

EskimoArapaho

5,135 posts

134 months

Wednesday 16th April 2014
quotequote all
kambites said:
Bikes would be tax-exempt if they were taxed at the same rates as cars anyway.
Not nessecelery. A chunky monkey cycling to Greggs exhales plenty of CO2.

Snowboy

8,028 posts

150 months

Wednesday 16th April 2014
quotequote all
doogz said:
The whole "I have a car too, and I do pay road tax on it" doesn't really work IMO.

Yes, if you do have a car too, you will be paying road tax there, no-one is disputing that.

But if I get pulled over in my MR2 with no tax, can I get away with saying "Ah, but my other car is taxed, so I do pay tax"?
Fair enough. So like someone else said;
Tax it on emissions.
Or engines size.

kambites

67,461 posts

220 months

Wednesday 16th April 2014
quotequote all
EskimoArapaho said:
kambites said:
Bikes would be tax-exempt if they were taxed at the same rates as cars anyway.
Not nessecelery. A chunky monkey cycling to Greggs exhales plenty of CO2.
If you're going to do that you have to count the CO2 emitted by the lardy driver's breathing too. Even the most lardy, unfit of cyclists is only going to be a few g/km extra over their normal hyperventilating state. If the fatties can get fit by cycling, it might even reduce their average CO2 output overall. hehe

Edited by kambites on Wednesday 16th April 14:14

Hoofy

76,253 posts

281 months

Wednesday 16th April 2014
quotequote all
Snowboy said:
There are a few quite vocal people who rant about tax, but the majority of PH and people in general don't use that argument.

Besides, I'd bet the majority of cycling households pay 'car tax' on at least one car.
I agree with your first sentence.

Your second sentence doesn't make sense but many people do state it. "I already pay car tax." I say it doesn't make sense because you pay VED per vehicle. Not that I agree with a bicycle tax.

kambites

67,461 posts

220 months

Wednesday 16th April 2014
quotequote all
doogz said:
To clarify though, I was just making the point. Should cyclists pay tax or not though? I really couldn't care less.
They already do. Income tax, VAT, council tax,... smile

BGarside

1,564 posts

136 months

Wednesday 16th April 2014
quotequote all
kambites said:
If you're going to do that you have to count the CO2 emitted by the lardy driver's breathing too. Even the most lardy, unfit of cyclists is only going to be a few g/km extra over their normal hyperventilating state. If the fatties can get fit by cycling, it might even reduce their average CO2 output overall. hehe

Edited by kambites on Wednesday 16th April 14:14
The govt. hasn't seen fit to tax breathing yet. Don't give them ideas...

jimbop1

2,441 posts

203 months

Wednesday 16th April 2014
quotequote all
T0nup said:
Cyclists...

Test em... Yes.
Insurance... Absolutely
Tax em... HELL YES!

And frankly, should a cyclist be pulled or caught for anything by BiB, if they are found to be a car driving licence holder, it should be a mandatory 3 points. They should know fking better.
Very good point!

I don't really agree with the tax bit though as cars with few emissions don't pay.

kambites

67,461 posts

220 months

Wednesday 16th April 2014
quotequote all
I believe you can already get points on your driving licence for breaking the rules of the road on/in unlicenced vehicles. Strictly speaking, you can probably get banned from driving for walking along a road while drunk. hehe