Self employed - tax benefits of cycling?

BungleGirl

I have just set up a business (partnership with my husband) and am looking to buy a bicycle for business use.

Does anyone know if I can either claim the bike as a capital expense or claim a mileage for using it?

There seem to be loads of tax benefits for employers/employees buying/using bikes but I haven't managed to find anything on the Inland Revenue website that relates to the self employed

If anyone has any experience or knowledge of this I would really appreciate any tips!

Sophie

fengirl_2

You would claim capital allowances for the cost of the bike, plus repairs and running costs. All, of course, restricted to business use.

rdp1980

As far as I'm aware the same rules apply for the employed as the self employed.

For example, you can claim 40p/mile for using your car for business purposes (and claim that as an expense for self employment). The rate for bicycles is 20p/mile if I remember correctly.

However these allowances relate only to using your own car/bike for work. If you claim the cost of the bike upfront as an expense then effectively you have to work out if you use it for personal use as well what proportion is for you and what proportion is for the business.

So basically you could buy it out of your own pocket and claim back 20p/mile for its use.

BungleGirl

Thanks for that - I shall have a think about which way would be best to do it.