Discussion
Last year my company bought me a new bike, with the intention that I would ride it to my office during the week and then use it at the weekend - ie the majority of its use would be company related. As I understand it, that would have meant the bike had a BIK of 0. It was quite an expensive bike.
It was a straight company purchase, not via cycle to work etc.
Given I've only been into the office about a dozen times in the last financial year, and I've still been riding outside, I assume it is now a benefit and it should appear on my P11D? Are there any covid-reliefs or similar available?
Thoughts welcome.
It was a straight company purchase, not via cycle to work etc.
Given I've only been into the office about a dozen times in the last financial year, and I've still been riding outside, I assume it is now a benefit and it should appear on my P11D? Are there any covid-reliefs or similar available?
Thoughts welcome.
Bikes are treated quite well from a BIK point of view. Here's what HMRC says -
Expenses and benefits: bikes for employees
As an employer, lending or hiring bikes to employees doesn’t count as an expense or benefit - as long as they’re available to all employees and mainly used for getting to work.
This means:
you don’t have to report them to HM Revenue & Customs (HMRC)
you don’t deduct or pay tax and National Insurance on them
https://www.gov.uk/expenses-and-benefits-bikes-for...
Expenses and benefits: bikes for employees
As an employer, lending or hiring bikes to employees doesn’t count as an expense or benefit - as long as they’re available to all employees and mainly used for getting to work.
This means:
you don’t have to report them to HM Revenue & Customs (HMRC)
you don’t deduct or pay tax and National Insurance on them
https://www.gov.uk/expenses-and-benefits-bikes-for...
If they have paid for and gave you ownership of the bike it was a taxable benefit and the value subject to tax. Simple as that.
The c2w schemes offer a tax beneficial route to ownership but only if the rules are followed. For that, there is normal requirement to use the bike to some extent in your commute, but there has been a specific covid related relaxation to that given people cannot travel to work as normal, but that is irrelevant here as it wasnt through the scheme.
The c2w schemes offer a tax beneficial route to ownership but only if the rules are followed. For that, there is normal requirement to use the bike to some extent in your commute, but there has been a specific covid related relaxation to that given people cannot travel to work as normal, but that is irrelevant here as it wasnt through the scheme.
Listen to Eric Mc on this. He knows what he’s talking about and other people referring to TVs don’t. (A better comparison might be to electric company cars than TVs.)
The only reason companies use Cycle 2 Work providers is for administrative reasons. There is no need to and employers such as yourself may well find it easier to simply buy outright.
Official government guidance is here. In particular, note the COVID-19 amendment part way down which clarifies that the normal (relaxed and unenforced) rules on the majority of use being to/from work have been removed entirely for cycles provided prior to 20 December 2020.
The only reason companies use Cycle 2 Work providers is for administrative reasons. There is no need to and employers such as yourself may well find it easier to simply buy outright.
Official government guidance is here. In particular, note the COVID-19 amendment part way down which clarifies that the normal (relaxed and unenforced) rules on the majority of use being to/from work have been removed entirely for cycles provided prior to 20 December 2020.
Edited by Zigster on Thursday 18th February 07:10
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