Can the Cycle to Work Scheme Work for You? 🚴‍♂️

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!

REAL-WORLD SCENARIO

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.

Source info: https://www.gov.uk/government/publications/cycle-to-work-scheme-implementation-guidance

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