/ Bike purchase v Tax

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andymac - on 18 Aug 2013
I'm self-employed and had a discussion at work yesterday as to whether the purchase of a bike is or can be classed as tax deductible.

The 'cycle to work scheme' for the self employed ,if you like.

Thanks
Siward on 18 Aug 2013
In reply to andymac:

I don't think so but cannot, at the moment, give you chapter and verse why (useful I know!)

This page: http://www.starfishaccounting.co.uk/2011/08/top-10-tax-deductible-expenses-for-sole-traders.html

says you can claim mileage for bikes at 20p per mile (not commuting though since that ain't business mileage).

Discussion here:

http://forums.roadcyclinguk.com/showthread.php/118517-Are-bikes-tax-deductable
In reply to andymac: Do you cycle/travel to work?
andymac - on 19 Aug 2013
In reply to andymac:

Some days .

Not easy trying to balance 4x2"s on your shoulder though
ByEek - on 19 Aug 2013
In reply to andymac:

> Not easy trying to balance 4x2"s on your shoulder though

You just need something a bit more practical. I reckon you could get a roof rack for one of these!

http://krisdedecker.typepad.com/.a/6a00e0099229e88833017ee3b3d27e970d-500wi
Dax H - on 19 Aug 2013
In reply to andymac: But obviously you use your bike for visiting customers to estimate work as part of your overall environmental policy to reduce your carbon footprint.
Grey area - on 19 Aug 2013
In reply to andymac: If you are running as a limited company I can't see any reason why you couldn't just do a CW scheme anyway.

If you're a sole trader then I think the answer is definitely not.
ByEek - on 19 Aug 2013
In reply to Grey area:
> (In reply to andymac) If you are running as a limited company I can't see any reason why you couldn't just do a CW scheme anyway.

I work for a small limited company. I asked if they would be up for it which they were. They then looked into the nuts and bolts of setting it up and decided it was just too much effort.
a concerned citizen - on 19 Aug 2013
In reply to ByEek: A couple of people I know who run 1 man ltd companies simply have a "company bike" which the companies maintains and uses for business journeys.
nufkin - on 19 Aug 2013
In reply to andymac:

I invoice clients for 20p p/m when I use my bike to deliver things, and I declare a percentage of the running cost (services, inner tubes, brake blocks etc) as expenses on my self-assessment.
Buying a whole bike as an expense might be a bit much, unless its only used for work, but I don't see why you couldn't declare a percentage - or put it in the section ('capital expense'?) where pricey things like cars and computers go that you use for your work.
Saintly - on 20 Aug 2013
In reply to Grey area: I work for quite a large sole trader ran organisation and we set up a cycle to work for a few of our employees.

It comes down to the accountant being on board and showing the bike purchase as a non taxable/NI purchase. It is certainly worth investigating.
Grey area - on 20 Aug 2013
In reply to Saintly: Sorry I didn't make myself clear - If the OP owns the company then as a sole trader he couldn't do a CW scheme to himself as he is the company (they are legally one and the same) He could of course offer a CW scheme to his employees.

A limited company is a legal entity in it's own right and the OP even if he owned it would be an employee and could participate in a CW scheme. That is the distinction. The post about a company bicycle would be one way round it, but would be vulnerable to a PAYE audit.
Grey area - on 20 Aug 2013
In reply to Grey area: Or any tax investigation.
ads.ukclimbing.com
Saintly - on 20 Aug 2013
In reply to Grey area: Fair point;)

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