Cycling to Work

Wheely tyred of walking to work?

Whether you’re a keen cyclist or cycling newbie, biking to work can be a great way to integrate exercise into your working day.  And the good news is that a company bicycle is also tax efficient. 
 
The company can claim capital allowances on the bike.  As remuneration to an employee, the company can recover VAT on the bike (being a bike there's also no private use adjustment) and provided it receives no consideration there's no output VAT to charge.  And provided it is made available to the employee without transfer of ownership and is used mainly for qualifying journeys, then there's no benefit in kind, because of the exemption in S.244ITEPA 2003.