C2W for the self-employed - what's allowable

[KneesUp]

Buy it and put it down as a business expense against profits. The businesss will own it but you may just need to justify its business use should there ever be an inspection.

So I can treat it like a printer, say - the business needs one so it's a business expense but I use it sometimes too.

(and for the benefit of those that think I'm fiddling, I've used 5 reams in my £150 printers in the past 3 months and printed about a dozen pages for myself - I used to print more for myself when it was my employers printer )

 

[KneesUp]

Being as the buck stops with me I am effectively always on call, unless I'm on holiday - and a bike is a quicker way to get to the business from home if the car (which isn't a business vehicle) is unavailable because, for example, my wife has it, or it won't go because it's very old and French. There is no bus ata ll on a Sunday, in fact. Do you reckon that would count as a justification?

 

[KneesUp]

Do you exclusively work in one location and commute from home?

I'd say I'm always working. It's rare to get a 'day off' and not get a call about something. But on the days when I am on the rota are mostly at one place, but sometimes at places too far to cycle to. I've replied to five work emails today while I've been 'off' and that's a quiet day as no-one has actually phoned.

 

[User6179]

I'd say I'm always working. It's rare to get a 'day off' and not get a call about something. But on the days when I am on the rota are mostly at one place, but sometimes at places too far to cycle to. I've replied to five work emails today while I've been 'off' and that's a quiet day as no-one has actually phoned.

Sounds like you should be on the books and not self employed, most of the construction industry should be employed but for whatever reason the government let them away with it.

You don't seem to need a bike for business purposes so you cant really claim it as a legitimate expense.

 

[Markymark]

So I can treat it like a printer, say - the business needs one so it's a business expense but I use it sometimes too. )

Correct. Your business buys it and uses it for business purposes, not commuting. If you happen to take it home I'm sure that's ok. You may need to use it to visit clients or make delivieries etc. All other expenses, maintenance, lights, helmets etc can also be claimed.

The business does own it though so if sold etc, that would.need to be accounted for.

This is not tax advice, just my ramblings

 

[KneesUp]

Sounds like you should be on the books and not self employed, most of the construction industry should be employed but for whatever reason the government let them away with it.

You don't seem to need a bike for business purposes so you cant really claim it as a legitimate expense.

I'd have to be on my own books - I am not a builder, I have a shop, but as I am the marketing manager, finance manager, HR department, buying department, facilities manager etc etc etc if anything out of the ordinary happens and I am away, I get a call. And the other companies I deal with to buy things don't know I wasn't 'at work' today, so they send me emails that make my phone buzz in my pocket, and the sooner I reply, the sooner things happen.

I do end up going to the shop after it closes quite often to sort things out because I've not been able to go in the day as I haven't had access to the car. I could sort those things out sooner if I had a bike. (ok, so I do have a bike, but it has not bottom bracket at the moment!)

 

[Markymark]

I think, strictly speaking, only a proportion of ... not all.

Perhaps. Like I say, am not an expert. Not sure why any less thn all can be claimed as its a business asset that needs to be maintained but don't know for sure.

 

[marknotgeorge]

You could buy the bike through the business, but to stay on the right side of the taxman you'd have to apportion the cost between business and private use, for both the cost of the bike (whether you class it as plant & machinery or simply a revenue expense) and the VAT (if you're so registered).

Alternatively, you could buy the bike privately, and claim 20p a mile for business use tax-free.

 

[mr_cellophane]

As stated above, the Cycle to Work scheme is only applicable for employees. However, as you're self employed, if you buy a bike for business purposes, and assuming it's genuinely used that way, then you'd be able to claim that as a capital expense and 20p per mile for any business trips undertaken.

Can't do both. You either own a bike and claim 20p a mile or the company owns it and can then claim for the bike and any repairs, etc.