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Bicycle Travel Expenses

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homedeeth | 12:45 Tue 18th Sep 2018 | Business & Finance
9 Answers
I currently work for an agency and get paid by an umbrella company.
My only method of transport is my trusty bicycle. I don't drive etc...
I was wondering whether I can claim expenses for things like maintenance, inner tubes, and repairs.
The Umbrella company said I'd have to go to HMRC.
Has anyone had experience of this?

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Do you use your cycle for work as in a messenger or just to go to and from work.
is there mrore than one post on this subject? with respect to all the answer must be in text book (or discussed in class). Try and look up the answer.
It may well have been asked before,but that doesn't matter - hope someone who has first hand experience of this can help you homedeeth.
apparently you can, in so far as it's used for work

https://www.cyclinguk.org/article/campaigns-guide/tax-incentives

Not just for getting there and back, I suppose, any more than people can claim their bus tickets - it would be up to your employers to reimburse you if they have such a pollicy.
As it's an umbrella company the company will reimburse you- but only you have deducted the expenses fro your pay! That's how they work. It reduces your net pay so you pay less tax/NI then they give you the expenses. The perosn who loses out is HMRC- plus you because the umbrella company takes a fee usually in the form of a flat or percentage of pay charge. The risk with these is if HMRC later see it as avoidance and come back to you in 5 years time for the underpaid tax, especially if the company no longer exists.
https://www.gov.uk/government/publications/cycle-to-work-scheme-implementation-guidance
and
https://www.cyclingweekly.com/news/latest-news/cycle-to-work-scheme-10-things-to-know-5055

I havent gone thro it all - you can
I think your employer has to do it but I am not sure
and it doesnt sound as tho your umbrella company is that keen

(arent UCs dodgy tax vehicles to save NICs?)
The HMRC rate is 20p a mile, but you have to meet certain criteria- eg you can't b travelling to the same place- you have to sign something about your true base.
If you are with an umbrella company I assume you are also paying the Employer's National insurance as well as your own. Claimimg some cycling expenses at the agreed HMRC rate would reduce your liability for both NIs and reduce your tax, but it wouldn't be paid to you on top of your salary.
So if you do 100 miles a week you can claim £20 a week. Umbrella companies often then reduce your pay by £20 (subject to mimimum wage constraints). You then pay slightly less tax, NI and Employers NI on that- so maybe £9. The UC then gives you the £20 back. Overall you are £9 better off. Unless there is an admin charge.
It's an area where you need to be careful. HMRC are now coming back to umbrella companies about avoidance (currently just limited types of cases) and pursuing the employees going back 10 years or so.
I got out of UCs when i realised the main beneficiaries were the agencies and UCs
I've never heard of an Umbrella Company, only employment agencies.
It's a way the agency avoids paying employer's NI. Dieseldick often used them

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