Tax relief for the self employed
But Pete, the decorator uses the bike for making visits to his customers - not to a regular place of work. Because of the nature of the job, he doesn't have a regular place of work and the travelling is an integral part of his work. He even carries all his gear on the bike and trailer!
I'm sure he could buy a bike and claim it as a business expense.
Frank
Everyone in business has a "Place of Business" even though that may be his home. Where home is his business address then he is on business the moment he leaves it
for a customer's address. It is the itinerant nature of a trade that is a major test as to whether or not a person is self-employed. Working for one person, company or undertaking makes it difficult for a taxpayer to claim he/she is self employed (but there are many other tests to be applied to determine his/her exact status).
So, if he takes with him, to his customer's address, the "tools of his trade" or merely calls upon his customer to carry out the terms of his contract (written or oral) he may charge against his Income from the Trade, the cost of getting there (Car, Train, Bus, Taxi, Aeroplane, or Electric Bicycle - even boat) to arrive at his profits for tax purposes. This makes for some difficulty with the claim for such expenses where those expenses are required to be apportioned because the "asset" is owned by the taxpayer (it is not
owned by the business because the business is not a legal entity apart from its owner) and is also used in the taxpayer's private capacity (outside the business) e.g. the capital cost of a motor vehicle or e-bicycle, etc. Similarly, running expenses incurred must also be apportioned between business use and private use. This is so even if the taxpayer visits Tesco on his way to or from the customer, notwithstanding that he might argue he incurred no greater expense in this sort of diversion.
On must think laterally.
Having established that there is a business use, the proportion to be applied to the business is the taxpayer's responsibility. Normally, there is little trouble in doing so with the help of his/her accountant, provided the claim is reasonable and fits with the circumstances of the case.
Notional expenditure is not deductible from business profits. e.g expenses not actually incurred that would have been incurred but for a change of circumstance: that is to say, not returning to the business address but staying overnight with a friend.
It's a tough old world.
YES! In the above scenario he could buy an e-bike and charge some or all (as suits the case) of the running expenses to the business including a portion of the Capital Cost (as defined in the Rules for Capital Allowances for Plant and Machinery).
It seems to me to be an aberration that an employee can reduce his liability to tax and NIC by "LEASING" an Electric bike from his employer, (provided the parties have gone thru' the detailed niceties of the scheme), that has as much to do with Salary Sacrifice as "Carbon Footprint".
P.
PS. It seems this thread "How many electric bikes........." has been high-jacked into an unrelated thread concerning "Tax relief on bicycles".
