[Closed] Buying a bike via Ltd Co - anyone done it?

You'll get no sympathy on here with a scheme like that lad. Sounds dodgy as hell.

I'd tend to agree. If you want to commit tax fraud keep it between yourself and your accountant. Or find a less dodgy way to do it

I will use the bike for visiting local sites relating to a product I’m currently working on, some of which aren’t actually accessible by car.

If this is the primary purpose of the bike, then what you describe is completely fine. You're simply taking advantage of exactly the same tax break that drives cycle to work schemes: a company can make bikes available to staff, and if this is primarily for business purposes or commuting, then this is not considered a taxable benefit.

I'm not sure why you'd want to set up a "scheme" even if you did draw a salary. There's no requirement for cycle to work schemes to recover the cost of the bikes from the employee, and it wouldn't save you any money to do so.

Obviously the bike is owned by the Ltd company, not you personally, so if you were to sell it, the proceeds need to go into the company's coffers, not yours. You can buy the bike off the company after enough time has elapsed that HMRC's agreed fair market value is negligible.

EDIT: also, if you don't recover the cost of the bike via salary sacrifice, you avoid the issue of consumer credit licences and the £1k limit.

Other use of the cycle, for instance pleasure use or use by members of the employee’s family will not disqualify the exemption provided that the other use is not the main use of the bicycle.

Seems to be legit as per this government guidance, providing the ‘main use’ is work related, which it will be. I’d estimate it would be used 2-3 times per week for work stuff, then 1-2 times per week for non-work stuff.

Yes. I wrote a (company) cheque to the shop and it was used as a pool bike for errands.

Despite what the armchair experts on here may think, it is perfectly acceptable providing its use meets the qualifying criteria.

https://www.icsuk.com/buying-a-bike-through-your-limited-company/

Also have a read of the various hmrc pages on the subject

If you're going to be using the bike predominately for business purposes, like accessing sites as you say, you just buy it through the company like any other work tool. It is not dodgy in the slightest, it's perfectly acceptable for a Company to buy a bike for use by its employees, with no BIK charge. Indeed, that is the very basis of the bike to work scheme. That scheme allows personal use, as long as the main use is business.

And the many, many people on here taking advantage of the bike to work scheme offered by their employers to buy bikes that are rarely used for any work purpose should look at themselves before accusing you of tax fraud.

I type slower than everyone else...

"tax fraud" LOL

I type slower than everyone else…

Ha! Yeah, I’m not concerned about legality - I trust my (large and reputable) accounting firm.

Was just wondering if there was anything specific to look out for. I guess not!

If only bikes were in stock. But that’s a different thread entirely...

Was just wondering if there was anything specific to look out for.

Don't also claim your 20p/mile for using your own bike for work purposes, because it's not your bike.

Employers are explicitly not required to keep records of employee bike use, but if I were buying an expensive mountain bike in this way I'd make sure I could easily pull together a list of work trips I'd made on it, should the need arise.

if I were buying an expensive mountain bike in this way I’d make sure I could easily pull together a list of work trips I’d made on it, should the need arise.

Yep, I’d absolutely planned to do that.

The only thing about this that puzzles me is why you seem to trust some randoms on the internet more than your accountant!

Yep I did, albeit about 11 years ago.

Typing this from prison, obvs.

And the many, many people on here taking advantage of the bike to work scheme offered by their employers to buy bikes that are rarely used for any work purpose should look at themselves before accusing you of tax fraud.

Good point, well put.

The only thing about this that puzzles me is why you seem to trust some randoms on the internet more than your accountant!

Nah, I said a couple of replies down the thread that I trust my accountant and am not concerned about legality. It was more about whether there was anything else I need to look out for.

Don't forget you need a helmet and some seriously expensive lights.

Done exactly this on my first decent MTB. Basically a pool bike. It has to be available for all employees to use, but sounds like thats just you?
Was about to suggest what Zippy said but also a bloody good lock for your work trips.
What about insurance & maintenance I guess the ltd co pays that too.
Belt and braces, you had better get a RAMS on file for those detours on work trips too

When I had my own animation company, It bought a Kona Major Jake Carbon CX bike. This was then loaned to me to ride.

Worked out well

I have (twice) a fixed gear and a large courier bag (at peak fixed gear scene) and recently a Brompton. I used them to get to work* and to deliver my portfolio to agencies (but now the internet means I rarely bother) claim the whole cost and vat off plus tyres/chains now and again.
But I have leisure bikes which are totally separate and paid for out of my personal account.
I don’t have a car so the work bike gets used a fair bit and not for leisure.
* workplace is not the same place every day and changes all the time, though I mostly work from home.

I’m not defrauding anyone.

Tax fraud? Away an bile yer heid!

Doesn't sound any different to my friends who work in the trades and buy a van through their companies and use it for work use and personal use.

Doesn’t sound any different to my friends who work in the trades and buy a van through their companies and use it for work use and personal use.

It is, cos they should pay in theory pay BIK on the personal use.

Doesn’t sound any different to my friends who work in the trades and buy a van through their companies and use it for work use and personal use.

I'd say it was closer to people who buy those crew cab trucks but maybe it is genuinely for business use. Not enough information to really judge just going off the "ahems" which implies it is a bit dodgy but will give the benefit of the doubt based on the additional information.

Doesn’t sound any different

It may not sound different, but from HMRC's point of view it is. There is a specific tax exemption for providing bicycles to employees that permits personal use without it being considered a taxable benefit. It is this exemption that makes cycle to work schemes possible.

Not enough information to really judge just going off the “ahems” which implies it is a bit dodgy but will give the benefit of the doubt based on the additional information.

Yeah, maybe I hammed it up a bit there.

I was more thinking about typical situations where a business might buy a pool bike and make it available for staff to also use *outside* of work purposes, and where those staff might only use it to pop along to the shop, rather than bounce it down a black trail.