Push Bike - business expense?

[Cloud]

Hi there,

I'm considering purchasing a push bike for 'around town' errands such as posting a letter, picking up lunch, meeting a client.

Can I claim the cost of the bike as a business expense?

I am considering purchasing a mountain bike so that I may also use it as recreational use.

If 50% of the use was for personal and 50% was for business, would I be able to claim 50% of the cost as a business expense?

(I am not eligible for the cycle scheme as I am a sole-trader, not registered for VAT and not paid through PAYE)


Many thanks.

 

[Soulenler]

Also an idea would be to count it as an asset (i.e. an equipment under PPE). The personal usage is something that is debatable and needs to be proven.

Something I'd consider

 

[Scalloway]

HMRC do not allow the cost of a bike or its running costs as deductible expenditure. You must charge 20p per mile for business useage in your accounts.

 

[Cloud]

HMRC do not allow the cost of a bike or its running costs as deductible expenditure. You must charge 20p per mile for business useage in your accounts.

Thanks for confirming that Scalloway.

Probably not worth accounting business use in that case.

 

[David Griffiths]

HMRC do not allow the cost of a bike or its running costs as deductible expenditure.

That's news to me. Do you have a link to the relevant provision?

You must charge 20p per mile for business useage in your accounts.

Even though the OP is a sole trader?

 

[Scalloway]

This is what I was told by the HMRC representive at one of their courses last year. One of the participants used a bike regularly in the course of her work.

The only reference I can find after 5 minutes on Google is this:

http://www.contractorcalculator.co.uk/contractors_expenses_bicycle_motorcycle_travel.aspx

 

[David Griffiths]

There is a reference in the HMRC helpsheet for capital allowances (page 16) to the allowances not being available to an employee in respect of a car, bike or motor bike.

Your link to to a site for contractors who almost without exception work through limited companies, so would be bound by the employee rules.

I cannot find anything that prevents the claiming of capital allowances on a bicycle for a sole trader or partner - and the OP is a sole trader.

It would be interesting to know the context of the comment by the HMRC employee. Was the course about payroll for directors etc? Of course it's not unknown for HMRC employees to be completely wrong,particularly when they tell people that they can't claim something

 

[Scalloway]

It was an HMRC course on business expenses and capital allowances for the self employed. One of the attendees used a bike for travelling around the town for work and the HMRC representative took great pains in advising her that she could only claim mileage.

 

[David A]

We have an office bike that anyone can use.

It is much easier and quicker to use the bike when banking or visiting anyone near the town centre due to parking restrictions and the spread out nature of our town.

There was never any query as to whether this was a business cost in the accounts.