Bicycle mileage and capital allowances

Antoinnette

My client wants to claim her bicycle purchase as capital allowance. She also wants to claim the mileage. Is this allowable. It has just occured to me that you can't do both....

reader

Antoinnette wrote: »

My client wants to claim her bicycle purchase as capital allowance. She also wants to claim the mileage. Is this allowable. It has just occured to me that you can't do both....

I think the bike can either

1) Be kept out of the business (i.e. left as a personal asset) and the business reimburses the employee for business use of the personal bike @ 20p/mile OR

2) Brought into the business at market value and claim capital allowances, but no reimbursement (as the asset would be a company asset not a personal asset) and a P11D prepared in order to account for the private use of the bike.

At work I have one client with a bike and we go for the 20p/mile option.

ExcelAnt

http://www.hmrc.gov.uk/rates/travel.htm

FYI