tax free cycle

[man-ape]

Hi , does anybody know if there is a tax free cycling scheme for self employed people and how it works?

 

[frank9755]

Yes, if you have your own limited company: it can buy a bike for however much it chooses to pay and lend it to you for your use. But you can't do it if you are self-employed without a limited company.

 

[Baker]

I've just bought a new bike this way.

Advantages:

save the VAT (16.67% of gross price of bike)
save the corp tax on the net value of chosen bike at your highest rate


Disadvantages
you do need to be a ltd company
to take advantage of the VAT saving you obviously need to be VAT registered

took the 'effective' cost of my bike from down by about £500

Best to check with your accountant first though

 

[man-ape]

Thanks for the advice i'll have to speak to my accountant not VAT registered.

 

[david1701]

am a sole trader

 

[joett1978]

I trade as a ltd company but not VAT registered. As above my company bought my bike...sorry a pool bike... and essential safety stuff and let's all the employees (me) borrow it. It was really nice of the owner (me).


Joe

 

[Mawsley]

Unfortunately I am an employee of Northamptonshire County Council - and they don't believe in giving their employees the benefit of the scheme they recommend every other employer to offer.