UK Cycle to work

[mattyman]

i am a director of a company and want to purchase a bike through cycle to work scheme but my accountant doesn't seem too enthusiastic about it / i want to check i am doing it all right as it appears overlay complicated and different people have diff opinions online.

The accountant said that as i am the sole director, on lower pay package and NOT VAT registered there's not the same benefit.

any suggest would be gratefully received.

 

[Fidget]

A sole director of a limited company is eligible for the cycle to work scheme as long as they are paid via payroll and, obviously, the company needs to be signed up to the scheme.

An organisation doesn't have to be VAT registered to be eligible to sign up to the scheme, although if not VAT registered, it does mean that VAT is not recoverable, which is maybe what your accountant is getting at.

But, as your accountant has more knowledge of your business set-up, you might want to just ask them to illustrate to you why there's not the same benefit.

 

[puckdrum]

Sorry to hear that your accountant isn't too keen on the cycle to work scheme. It can be a bit confusing sometimes, but there are definitely benefits to taking advantage of it. If you're not VAT registered and on a lower pay package, you may not get as much of a tax benefit as some other people, but it's still worth looking into. Have you tried speaking to other directors in similar positions to see what they've done? It might be helpful to get some advice from people who have been through it before.