BIK on company bike purchase

[gasman712]

I have a private services company
I am looking to buy an e-bike for commuting purposes (its only about 10km)
There are two directors - me and my spouse. I am an additional rate tax payer and my spouse a basic rate payer.
My spouse is employed by the company at £758/month and has an income from another employer. She derives a dividend from the company to top up to the higher rate tax threshold. I derive no income or dividend from the company.

If the company buys a bike, who is the BIK applied to?
I understand it is 20% of the value of the bike if the bike is used for recreation purposes

[wheelerc]

I don't think there is BIK on bikes/ebikes, as long as they are used at least 50% for commuting.

[gasman712]

Cheers, just read that actually and came back to alter my initial post.
You're correct
At least 50% commuting, no BIK payable

[StevieBee]

Not only is there no BIK, there is a grant to encourage you cycle to work: https://www.cyclescheme.co.uk

[jeremyc]

gasman712 said:

There are two directors - me and my spouse. ... She derives a dividend from the company to top up to the higher rate tax threshold. I derive no income or dividend from the company.

Just curious - do you also have shares of the same class as your spouse?

If so, you need to be paid the same dividends per share as her.

[President Merkin]

With the caveat that I don't know if the rules are different for PSC's and to check with your accountant, you can generally as a director of a Ltd company buy a bike & any accessories & claim 100% of the vat with no BIK liability and deduct the full cost from corporation tax which is obviously highly attractive.

The only conditions are the company remains the owner of the bike & it is used at least 50% for commuting although I would suggest checking up on these is not anywhere much on the taxman's list of prioroties. Details here.

https://goldstagaccounts.co.uk/resources/can-my-co...

[gasman712]

jeremyc said:

ust curious - do you also have shares of the same class as your spouse?

If so, you need to be paid the same dividends per share as her.

No, share structure is not set that way.

President Merkin said:

With the caveat that I don't know if the rules are different for PSC's and to check with your accountant, you can generally as a director of a Ltd company buy a bike & any accessories & claim 100% of the vat with no BIK liability and deduct the full cost from corporation tax which is obviously highly attractive.

The only conditions are the company remains the owner of the bike & it is used at least 50% for commuting although I would suggest checking up on these is not anywhere much on the taxman's list of prioroties. Details here.

https://goldstagaccounts.co.uk/resources/can-my-co...

Yep, thanks for the link. I did some moe reading last night and found similar.
I note that helmets and other safety equipment may be treated as consummables and are corp tax deductible