Cambridge is well-known for its high volumes of cyclists. In a city where so many people travel around by bicycle, is everyone making the most of the tax breaks available?
Most people are aware that you can claim mileage as an expense when you use your car for business purposes but are you aware that you can do the same with a bicycle?
Providing you or your employee uses a bike for business purposes, you can claim 20p on expenses for every mile travelled. Below is a table showing the current rates (tax year 2016/17):
Tax: rates per business mile
|Type of vehicle||First 10,000 miles||Above 10,000 miles|
|Cars and vans||45p||25p|
For example, let’s say you work in care. You use your own bike to travel between the houses of your patients, you can claim 20p per mile. If you travel 1,000 miles per year on your bike, you can claim back £200 in expenses.
If you’re an employer, the cycle to work scheme may be of interest to you. Essentially, the cycle to work scheme allows employers to loan bikes along with safety equipment to employees as a tax-free benefit.
Employees will have the option to take ownership of the bike at the end of the repayment.
We’re happy to discuss any of the topics mentioned in this blog – simply contact us.