Hi
I own an electric bike and I am self employed. I use my bike for business travel and I have just been filling in my tax return. Imagine my annoyance at finding that while brand new 'low carbon emitting' cars are 100% tax deductable on capital allowances, electric bikes aren't and they emit a fraction of the CO2 compared to the greenest car.
I've just written the following to my tax office. Feel free to use the wording to send a letter to your own tax office or let me know if you'd be interested in a petition. It could save you a couple of hundred quid.
Best wishes
Vey
Dear Sir/Madam
Re: Electric Bikes and Capital Allowances with 100% rate of first year allowance
I understand you have introduced a first year allowance rate of 100% on certain capital purchases that are environmentally beneficial. This includes ‘new cars with low CO2 emissions of not more than 120 gms per km driven’ (Notes on Self Employment, page SEN 4).
I bought an electric bike in August 2006, to get to business meetings and use for other business travel in my self employed work. It substitutes for my car and only emits the equivalent of 5gms CO2 per km, if the electricity it uses is generated from fossil fuels. Of course, if the electricity is derived from renewable sources, the equivalent CO2 emissions per km are even lower than that.
I would expect electric bikes to be included in the list of items that qualify for the 100% rate, but they are not. In recognition of their significantly lower impact on the environment and their ability to offer an alternative to cars for short or medium distance business journeys (eg I cycle up to 25 business miles a day), I request that this is amended.
Yours faithfully,
Veyatie Straker
I own an electric bike and I am self employed. I use my bike for business travel and I have just been filling in my tax return. Imagine my annoyance at finding that while brand new 'low carbon emitting' cars are 100% tax deductable on capital allowances, electric bikes aren't and they emit a fraction of the CO2 compared to the greenest car.
I've just written the following to my tax office. Feel free to use the wording to send a letter to your own tax office or let me know if you'd be interested in a petition. It could save you a couple of hundred quid.
Best wishes
Vey
Dear Sir/Madam
Re: Electric Bikes and Capital Allowances with 100% rate of first year allowance
I understand you have introduced a first year allowance rate of 100% on certain capital purchases that are environmentally beneficial. This includes ‘new cars with low CO2 emissions of not more than 120 gms per km driven’ (Notes on Self Employment, page SEN 4).
I bought an electric bike in August 2006, to get to business meetings and use for other business travel in my self employed work. It substitutes for my car and only emits the equivalent of 5gms CO2 per km, if the electricity it uses is generated from fossil fuels. Of course, if the electricity is derived from renewable sources, the equivalent CO2 emissions per km are even lower than that.
I would expect electric bikes to be included in the list of items that qualify for the 100% rate, but they are not. In recognition of their significantly lower impact on the environment and their ability to offer an alternative to cars for short or medium distance business journeys (eg I cycle up to 25 business miles a day), I request that this is amended.
Yours faithfully,
Veyatie Straker
