Company bicycle as asset including GPS cycle computer?

[northernladuk]

How long have you been at your current client?
12 months
Would like to the tax back plus penalty + interest by cash or cheque sir?

[electronicfur]

I was about to ask explain to me how you would explain to the VAT (wo)man why a cycle computer is safety equipment and not a personal purchase that shouldn't be on your company's books?

As I mentioned already, Garmin's latest cycle computer has the ability to use radar to show cars as they are approaching behind you on the road. See here for a review of how it shows dots on the computer screen's right hand side to show approaching cars. Garmin Varia Bike Radar System In-Depth Review | DC Rainmaker

And it's not an issue about it being on the company's books. It's about whether the lending of it to employees will be a benefit that is exempt from tax on employment income.

Bike yes, although eyebrows may be raised if you blow a couple of grand on a full carbon TT bike for your commute.

No that is not an issue. My previous £2k company vehicle was accepted by HMRC as a company asset, and all they requested extra was the full receipt showing the VAT number of the bike shop. I also know others who have bought £5k Cervelo's as company assets without any issues.

Of course you can... And absolutely no way is a bike computer a piece of saftey equipment. Check page 10..

https://www.google.co.uk/url?sa=t&so...Oz8TG3cHkHGczA

Or directly off the gov website..

EIM21664 - Particular benefits: exemption for bicycles

Don't forget to make sure you get a tandem and can claim the passengers mileage allowance as well.

Good idea about the tandem

Actually if you read the first link it says "The company can buy a bicycle and all the necessary accessories and safety equipment and lend it to you".

This is what many links I found say on this issue, so hence my question about whether there is actually a definition of what "necessary accessories and safety equipment" are. For example, most bike shops will tell you that a pump, toolkit and lock are acceptable "necessary equipment" on the Cycle to Work scheme and will recommend them, and when buying as a company asset the rules are similar. But I find it's always best to get the info direct from legislation if you want the have the actual facts.

As it happened I found your second link EIM21664 - Particular benefits: exemption for bicycles just after my last post, and just before going to the bike shop to pick up my new company vehicle.

It clearly states "Cyclists’ safety equipment is not defined in the legislation and a common sense approach should be taken when deciding what falls within this description". So common sense tells me that a cycle computer radar system showing me cars as they approach behind me on the road has a safety function, as well as having other functions.

But I also noted it stated the following "Examples of items that do not count as cyclists’ safety equipment include: Cycle computer". Now that was probably written without knowledge of cycle computers that interface with radar. But as HMRC clearly rule it out, I'm not going to be the one arguing that with HMRC, so I didn't purchase the cycle computer as part of the company purchase.

[WTFH]

A "Radar" on a computer on a bike sounds like a distraction rather than a safety device. If you're always looking down at that, you won't notice the red light you've just gone through or the side of the road your on.


What does your accountant say with regards to your purchases?

[electronicfur]

The radar beeps when there is a car approaching, so you can then check the screen.

I suggest that if you cannot cope with that, then you can also not handle looking at a car speedometer to check your speed, and you probably shouldn't be in charge of a vehicle in the first place...

[WTFH]

The radar beeps when there is a car approaching, so you can then check the screen.

I suggest that if you cannot cope with that, then you can also not handle looking at a car speedometer to check your speed, and you probably shouldn't be in charge of a vehicle in the first place...

Car speedos are positioned so that the look down to them is only small, you can still see the vehicle in front when you glance at a speedo. Also, you're only looking at a speedo to see where a large moving line is, not a small dot.

[Alan @ BroomeAffinity]

I'd love to meet the tax inspector that swallows this one. You've conceded the point that the computer is bought for navigating. The radar part is incidental which would suggest it's not a piece of safety equipment. The final sentence in the op would suggest you know this and are chancing your arm.

[Alan @ BroomeAffinity]

Although if it's the Garmin thing I just looked at its only a couple of hundred quid so there's a chance the tax-man might not be arsed to argue about such a small amount of tax relief.

[northernladuk]

I'd love to meet the tax inspector that swallows this one. You've conceded the point that the computer is bought for navigating. The radar part is incidental which would suggest it's not a piece of safety equipment. The final sentence in the op would suggest you know this and are chancing your arm.

Thank god, someone who knows what they are talking about confirms it. Thank you for that.

<bet he carries on arguing it though>

[Alan @ BroomeAffinity]

And what about the main use rule? Are you seriously going to buy a £2k + bike and use it mainly for commuting? HMRC will argue that personal use is the main purpose.

[WTFH]

...and this isn't the first, it's a replacement for another one (probably last year's colours)