So apparently you can buy a bike through your business?
Has anyone done this?
CYCLE TO WORK SCHEME
An employer can join Cycle to Work scheme. The company can simply buy a cycle and cyclists’ safety equipment and loan it to an employee for qualifying journeys to work. It will give an employee a tax-free benefit. There's no agreement to draw. The employer 'joins' the scheme within the company when he buys a bicycle and makes it available to all employees. The employer does not require any prior approval by HM Revenue & Customs.
The cost of the bike and safety equipment can be treated as capital expenditure.
The following cyclists’ safety equipment can be claimed:
- Cycle helmets which conform to European standard EN 1078
- Bells and bulb horns
- Lights, including dynamo packs
- Mirrors and mudguards to ensure riders visibility is not impaired
- Cycle clips and dress guards
- Panniers, luggage carriers and straps to allow luggage to be safely carried - Child safety seats
- Locks and chains to ensure cycle can be safely secured
- Pumps, puncture repair kits, cycle tool kits and tyre sealant to allow for minor repairs - Reflective clothing along with white front reflectors and spoke reflectors
Conditions to be met in order to qualify for cycle to work scheme:
- Ownership of the bike is not transferred to the employee during the loan period (this is HMRC wording which means that the bike should be owned by the business);
- Employees use the equipment mainly for qualifying journeys, at least 50% business use; i.e. for journeys made between the employee’s home and workplace, or part of those journeys (for example, to the station), or for journeys between one workplace and another.
Has anyone done this?
CYCLE TO WORK SCHEME
An employer can join Cycle to Work scheme. The company can simply buy a cycle and cyclists’ safety equipment and loan it to an employee for qualifying journeys to work. It will give an employee a tax-free benefit. There's no agreement to draw. The employer 'joins' the scheme within the company when he buys a bicycle and makes it available to all employees. The employer does not require any prior approval by HM Revenue & Customs.
The cost of the bike and safety equipment can be treated as capital expenditure.
The following cyclists’ safety equipment can be claimed:
- Cycle helmets which conform to European standard EN 1078
- Bells and bulb horns
- Lights, including dynamo packs
- Mirrors and mudguards to ensure riders visibility is not impaired
- Cycle clips and dress guards
- Panniers, luggage carriers and straps to allow luggage to be safely carried - Child safety seats
- Locks and chains to ensure cycle can be safely secured
- Pumps, puncture repair kits, cycle tool kits and tyre sealant to allow for minor repairs - Reflective clothing along with white front reflectors and spoke reflectors
Conditions to be met in order to qualify for cycle to work scheme:
- Ownership of the bike is not transferred to the employee during the loan period (this is HMRC wording which means that the bike should be owned by the business);
- Employees use the equipment mainly for qualifying journeys, at least 50% business use; i.e. for journeys made between the employee’s home and workplace, or part of those journeys (for example, to the station), or for journeys between one workplace and another.
Comment