Is cycle to work scheme possible for unpaid director?

[PurpleFox]

I am thinking of getting a bike, partly because I fancy a new one and partly because I should really cycle to our site as we have very limited parking and it is pointless me taking up a parking space that would be better served for a contractor with a van etc.

I started looking into the cycle to work scheme which seems to be fairly straightforward for a company to purchase a bike and any equipment and claim it against annual investment allowance (and reclaim the vat).

Quoted from a website:
For the employee, there is no taxable benefit-in-kind caused by using the bike, so there is no need to reduce their salary in order to offset the cost of the bike. The director could potentially save on income tax, as the bike is being funded with gross fee income and not personal income. This could save between 20-25% in comparison with being purchased personally, depending on what the director earns.

So far so good but I am a director and do not draw a salary. I have no staff.

Would this still work for me or am I not considered an employee because I don't draw a wage or pay NIC etc?

Thanks in advance.

[Countdown]

How would you save on income tax when you don't pay any income tax?

[PurpleFox]

Sorry, I quoted that bit from the web it is not relevant.

I am more thinking of saving corporation tax through being able to write down the purchase cost against annual allowance.

Oh and for the record, I pay plenty of income tax

Edited by PurpleFox on Thursday 2nd September 11:52

[CubanPete]

Can't you have a company bike, and just use it with no BIK?

[PurpleFox]

CubanPete said:

Can't you have a company bike, and just use it with no BIK?

That would seem the simplest way but I am not sure if you can do that, hence the question......The bike I am looking at is £3500.

[Countdown]

PurpleFox said:

That would seem the simplest way but I am not sure if you can do that, hence the question......The bike I am looking at is £3500.

You can.

https://www.icsuk.com/buying-a-bike-through-your-l...

[PurpleFox]

Thanks for the link.

That brings me back to the original question and thread title though..... seems fine as an employee but I am not sure if I actually qualify as an employee as I don't get paid by the company or pay national insurance etc.

[MrSparks]

You can buy a bike on the business and use it personally with no BIK.

Technically it has to be available to staff members though…

I bought a £4K eBike last year after looking into the options and accountant also advised it was all above board.

[PurpleFox]

MrSparks said:

You can buy a bike on the business and use it personally with no BIK.

Technically it has to be available to staff members though…

I bought a £4K eBike last year after looking into the options and accountant also advised it was all above board.

Nice one, thanks for that.

[NorthDave]

My company does pay me a small salary (and then dividends when possible!) and buys me bikes fairly regularly. I dont know how the accountant deals with them but I assume depreciates them as an asset. The company also pays for equipment and servicing of the bikes.

[PurpleFox]

NorthDave said:

My company does pay me a small salary (and then dividends when possible!) and buys me bikes fairly regularly. I dont know how the accountant deals with them but I assume depreciates them as an asset. The company also pays for equipment and servicing of the bikes.

[Ean218]

PurpleFox said:

Thanks for the link.

That brings me back to the original question and thread title though..... seems fine as an employee but I am not sure if I actually qualify as an employee as I don't get paid by the company or pay national insurance etc.

Does the company buy any other equipment for you to use, ie PC, printer, comfy chair? If so it is treated exactly the same, although it is intended to be mainly for use within the business.