TAX TIP OF THE WEEK - Thinking of investing In a new bike, could you get the company to pay?
The cost of a new bike these days can be quite a cost, especially if you are thinking of an e-bike which can run into £1000’s
The good news is using the government’s cycle-to-work scheme you can purchase the bike through your company which means you will benefit from:
Personal tax savings – as you will not need to extract money from your company before purchasing
Corporation tax savings – which can be claimed under the capital allowances super deduction
VAT – can be claimed back on the purchase price
As an additional benefit, the above also applies to safety equipment that may also need to be purchased separately.
There are some conditions and rules to follow but nothing too onerous, therefore this can be a great way to save tax as a director.
Hope this was helpful, for lots more tax tips and strategies get a copy of our 71 ways to save tax checklist https://bit.ly/2YQbhvr