Cycle to work scheme for the self employed: is it possible?

jonny_trousers

Hi guys,

I seem to recall reading that some of you have taken advantage of the Cycle to Work Scheme despite being self employed and I would love to hear any advice on where I should begin.

Cheers!

dubnut71

Hi Jonny - I looked into it but due to the way I pay myself (minimum wage plus dividends) I would have had to increase my wage by the appropriate bike repayment amount to make use of the saving.

This was not the most efficient way for me, however I have recently purchased a "pool vehicle" which just so happens to be a Specialized Tricross Sport for the use of myself and my fellow employee (who may or may not have an active interest in cycling anywhere) and find that the purchase of this vehicle and its upkeep is perfectly within the bounds of acceptable company expenditure as viewed by my accountant and HMRCE.....

Joining the CTW scheme would have taken weeks and then the bike would have to be sold to me at full RRP. Walking into the LBS with my company credit card and getting £100+ discount and then walking out the same day with the bike was mucho easier!!

Hope that helps! :P

spen666

Jonny_Trousers wrote:

Hi guys,

I seem to recall reading that some of you have taken advantage of the Cycle to Work Scheme despite being self employed and I would love to hear any advice on where I should begin.

Cheers!

Absolutely no chance for self employed.


Could be done if you are employed by your own Ltd company

daviesee

dubnut71 wrote:

Hi Jonny - I looked into it but due to the way I pay myself (minimum wage plus dividends) I would have had to increase my wage by the appropriate bike repayment amount to make use of the saving.

This was not the most efficient way for me, however I have recently purchased a "pool vehicle" which just so happens to be a Specialized Tricross Sport for the use of myself and my fellow employee (who may or may not have an active interest in cycling anywhere) and find that the purchase of this vehicle and its upkeep is perfectly within the bounds of acceptable company expenditure as viewed by my accountant and HMRCE.....

Joining the CTW scheme would have taken weeks and then the bike would have to be sold to me at full RRP. Walking into the LBS with my company credit card and getting £100+ discount and then walking out the same day with the bike was mucho easier!!

Hope that helps! :P

+1

Don't forget the extra jacket, safety equipment (helmet, reflectors etc), lights etc that you can also get at the same time.
Take it over £2000 and if you are on the flat rate VAT scheme you can claim that back too.
And don't forget "designated cycle to work" days company supplied breakfasts. Under £10 no receipts required.

jonny_trousers

Thanks guys and nicely done Dubnut! Not sure I could make that work for me, sadly, as I am not a LTD company. Mind you, I do use my bike purely to commute and so believe that every related expense is tax deductable. On top of that, I hear rumour that I can additionally claim 20p a mile. That 300 mile round trip really can be a bitch at times.

daviesee

Jonny,

I believe you can claim the 20p/mile or for a bike but not both.

jonny_trousers

daviesee wrote:

Jonny,

I believe you can claim the 20p/mile or for a bike but not both.

Aha! Bit like claiming for a car then. I'll check it out with my accountant. Cheers!