I am a PAYE employee of a 500-person company, paying higher-rate tax.
Additionally, I am self-employed, with relatively low turnover (maybe £10k this year).
I travel to my employers' offices in the majority (>95%) via Bicycle, and have done so for the last 4 years, and it's now reaching end of life.
I can buy a new bicycle via a 'cycle2work' scheme. However, this route has a number of disadvantages (in particular: choice (it's halfords; limited range). There is a £1,000 limit because it's implemented as a hire-purchase type scheme which is on the low side (frankly I'd rather do a one-off salary sacrifice, but that's how it's organised). The FMV (or tax benefit in kind) payment or extended use agreement at the end of the scheme is somewhat opaque - in that I don't trust the finance department not to screw it up and nobody can tell me what the options will actually be).
I'd prefer to manage it myself, but save on some tax. If it were a different provider scheme (say cyclescheme.co.uk) I'd probably just use that - but there's basically no way I'll get my employer to change scheme as they are lazy.
I understand from 'Helpsheet 207' that bicycles are a non-taxable provided they're "generally available to employees" and "your main use is for journeys between home and work or between workplaces".
Could I therefore buy a bicycle as a 'business expense' being self-employed, and use it for both that and travelling to my main job? I get that I'm an odd case - in the above guidance it's technically true that the main use would be for 'journeys between home and work', just not 'work from that employer'. I'd argue that it's in the spirit of the tax break (since it's designed to encourage 'cycling to work', which is exactly what I'll be doing for virtually all journeys) and that, depending on actual price, HMRC could actually receive slightly more money this way (I can't reclaim the VAT, it's not saving any employers-side NICs).
Does that hold water?
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That's slightly harsh
You would hardly appoint an accountant for a query like that!
@ OP you could purchase the bicycle through your business and claim Annual Investment Allowance.
However, you would have to restrict the tax relief claim to the business use proportion (this refers to your self-employment).
As the main use of the bicycle is for your employment, I would suggest the business use for your self-employment is minimal. Therefore, only a very small proportion of the cost of the bike would qualify for tax relief.
So in summary, your idea doesn't work.
I do not know why
People that only ever show up and say "freeloader", "is this homework" and "PM me" can really complain that their good nature may be being abused. I agree that the OP's "scheme" does not work.
If you bought your own bicycle would your employer pay the cycling mileage allowance instead? Might be a better option.
Home to work
If you bought your own bicycle would your employer pay the cycling mileage allowance instead? Might be a better option.
For home to work travel as described by the OP????
Mileage allowance
Cannot be paid for ordinary commuting, which is what the OP is using their cycle for.
Cycle to Work Scheme
Having implemented this scheme for several payrolls I know a bit about it.
The £1,000 limit is actually because if your employer will allow bikes over that value then they need to have a credit licence in place.