Buying a bike - cycle-to-work self-employed equivalent?

In fulltime employment, you can get the cycle-to-work scheme. If I bought a bike, could I pay for this one coconut and effectively avoid paying the VAT?

Cheers,
Nick

Hey Nick,
I’m not an accountant, so take this with a pinch of salt.

I did look into this last month as a sole company director and it only made sense if you were on PAYE pulling a salary that’s taxed on above the tax free amount, plus some, so say £30k+. This is because it’s made for employees and an employer need to register.

For sole trader and Ltd company directors like myself taking the tax free allowance as PAYE + dividends, it doesn’t make sense since it doesn’t qualify.

The reason for using the scheme is that you effectively pay less Tax & NI.

Charging the bike to the business and offsetting the VAT is a possibility, but you’d need to be using the bike exclusively for work otherwise it could be classified as a benefit in kind, So if it’s 50/50 it probably makes more sense to buy it personally and claim the 20p a mile.

I’m keen to see what others in the community think about this.