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On your bike
Key points
- The cycle to work scheme is set out in ITEPA 2003 s 244.
- The scheme can be combined with salary sacrifice to make it more flexible.
- Ownership of the cycle must not be transferred to the employee.
- The employee can buy the cycle later at a depreciated value.
- A VAT-registered employer can deduct all the VAT on the purchase of the bicycle.
- Check the purchase invoice to see whether safety equipment is included.
My daughter’s employer recently offered her a bicycle under the cycle to work (CTW) scheme. She asked me what the benefits were and I waffled about National Insurance savings and told her that it was undoubtedly ‘a good thing’. Then a client said she wanted to buy a bicycle through her own company and suddenly waffle would not do. Good things can be quite complicated and there seems to be little detailed and comprehensive...
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