Can the Cycle to Work Scheme Work for You? 🚴♂️
Updated: Sep 9, 2022
Are you feeling inspired by le Tour de France? As a business owner, perhaps you’re wondering if the Cycle to Work Scheme could be of some benefit.
Probably not, BUT…
The government have done it again – generally, small owner-managed businesses have found that the costs and hassle of operating the scheme outweigh the benefits.
For example – you could use a third-party provider to set up the scheme (usually a large bike shop), but there are salary sacrifice arrangements, benefits in kind, VAT claimed (then paid later!), and terms of employment to be updated. Forget it!
If you’re planning to use your bicycle for mostly business (including your commute), then your company can buy your bicycle + safety equipment. It can then claim corporation tax relief + input VAT. A higher saving with much less trouble.
Of note, under this scenario, the company will always own the bike until it's resold to a third-party or scrapped.
Would you like help to pay less tax? Feel free to get in touch or check out our related posts 👇