Anonymous
Share this content
2

Asset treatment of cycle to work scheme

Can you capitalise a bike AND take deductions from the employee

Didn't find your answer?

Hi

I have a client who is a director. He has a cycle to work bike purchased at £800. He is paying contributions to this cost through his payslip (PAYE) and the bike has also been capitalised as an asset.

I thought if you capitalised it, the employee wasnt required to pay for the bike just pay a fee if he chooses to take ownership after 12m? Confused that it has been capitalised and also employee is paying..

Does this sound right??

Replies (2)

Please login or register to join the discussion.

avatar
By Wanderer
27th Nov 2020 20:40

Quote:
Asset treatment of cycle to work scheme
Can you capitalise a bike AND take deductions from the employee

Hi

I have a client who is a director. He has a cycle to work bike purchased at £800. He is paying contributions to this cost through his payslip (PAYE) and the bike has also been capitalised as an asset.

I thought if you capitalised it, the employee wasnt required to pay for the bike just pay a fee if he chooses to take ownership after 12m? Confused that it has been capitalised and also employee is paying..

Does this sound right??

You thought wrong.
Legally:-
Asset of the company.
Employee is hiring it from the company.
Thanks (0)
avatar
By Paul Crowley
28th Nov 2020 11:04

.anon

Thanks (0)
Share this content