Bicycle expenses

[xchaotic]

Hi.

This probably should go to similar threads about what's appropriate use of a company expenses and what's not, but let me explain:

I use a bicycle to commute to work almost everyday and, to be honest not much else. So it really is a valid business expense, on top of that, I save company's money by not spending money on fuel or rail/bus tickets. It also is one of the fastest means to get to the client's office. So:
a)can I claim a new bicycle under company expenses?
b)can I claim parts & servicing?
c)can I claim mileage (I think it's 10p/mile) - not much but still

Why would you, or more importantly HMRC see any wrong in doing so?

Even if I occasionally use the same bicycle on weekends for my personal/private use, it is still far outweighed by my 'professional' use.

[Hiram King Of Tyre]

I think you can claim 20p/mile. Also, I think you can have a cycle to work day once a year and the company can buy lunch

[NotAllThere]

HMRC

So long as you use mainly for work (which you do), and is available to all employees (it is), your company can buy the bike, provide tax-free meals on designated "cycle to work days" ( that'll be every day then? ), provide bicycle safety equipment, such as helmets or reflective clothing.

Looks like you're home and in need of a shower, you sweaty cyclist you.

You might still be better off on the 20p a mile though.

[mashetti]

I want to ride my bicycle, I want to ride my bike...

I think you can claim 20p/mile.

It says: "Payments of up to 20p per mile may be made for business travel on an employee's own bicycle"

wtf does that mean anyway - up to 20p - is it up to the employer to set the mileage rate - so for us it's automatically 20p?

Now, let me get this straight. Buy a bike and all the gears (helmet, lights etc). Let's go cheap and say it costs £200 all up.

1st option - the business buys this and lends it to me. This, therefore, reduces company profit by £200 and saving approx £40 in tax to pay.

2nd option - I buy all this personally and use to get to my place of work and home. Let's say my generous employer allows me to claim 20p. I bike to work, 10 miles, I bike home, 10 miles. 20 miles = £4. Over a week that's £20. Now, how does it all work from here? Does the £20 a week come from the company (so reduces profit by £20 and saves £4 corp tax) and then paid to me. This £20 I get in my bank is then not liable for any further tax/NI.

Option 2 sounds like a pretty good deal at the moment but have I missed something key here? After only 2 weeks I am better off than option 1. There's a few hundred quid coming my way me thinks

And then there's the cycle to work day lunch to consider too! More info on this please.

[busgrw]

It says: "Payments of up to 20p per mile may be made for business travel on an employee's own bicycle"

wtf does that mean anyway - up to 20p - is it up to the employer to set the mileage rate - so for us it's automatically 20p?

Now, let me get this straight. Buy a bike and all the gears (helmet, lights etc). Let's go cheap and say it costs £200 all up.

1st option - the business buys this and lends it to me. This, therefore, reduces company profit by £200 and saving approx £40 in tax to pay.

2nd option - I buy all this personally and use to get to my place of work and home. Let's say my generous employer allows me to claim 20p. I bike to work, 10 miles, I bike home, 10 miles. 20 miles = £4. Over a week that's £20. Now, how does it all work from here? Does the £20 a week come from the company (so reduces profit by £20 and saves £4 corp tax) and then paid to me. This £20 I get in my bank is then not liable for any further tax/NI.

Option 2 sounds like a pretty good deal at the moment but have I missed something key here? After only 2 weeks I am better off than option 1. There's a few hundred quid coming my way me thinks

And then there's the cycle to work day lunch to consider too! More info on this please.

Hey, I realise that my chances are super slim of a reply, given this was over 10 years agao but,...... did you get an answer to this? What option did you go with in the end as I am in the same boat?

Thanks

[northernladuk]

Last Activity2nd March 2017 22:15.

[CryingSheep]

Hey, I realise that my chances are super slim of a reply, given this was over 10 years agao but,...... did you get an answer to this? What option did you go with in the end as I am in the same boat?

Thanks

He was right in the 2nd option calculations, just wrong that would be better off in two weeks! Taking into account the miles he said he was doing every week (meaning a claim of 20£ per week) after 10 weeks he would be getting exactly the same tax savings as in option 1 (where he said he would spend 200£ in the bike and gear). From the 10th week onwards he would be better off with option 2...

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[DaveB]

Bear in mind that as a company asset the company will also pay for maintenance and consumables. Tubes, tyres, brake pads etc.

That will off set a lot of the gains from claiming the 20p mile. And if it's actually a half decent bike then it will be a lot more than £200 so will take longer to "pay for itself".

[CryingSheep]

Bear in mind that as a company asset the company will also pay for maintenance and consumables. Tubes, tyres, brake pads etc.

That will off set a lot of the gains from claiming the 20p mile. And if it's actually a half decent bike then it will be a lot more than £200 so will take longer to "pay for itself".

Exactly... each person will have to do their own math.

[GhostofTarbera]

In a bike shop today looking for a bike to get fit, I really fancied this one for £700

BMC Timemachine ROAD 01 ONE 2019 Road Bike

I thought why not, loved the look of it, until I looked again it was £7K not £700 !!


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