Can My Company Buy Me a New Bike? (Yes—And Here’s How I’m Doing It in 2025)

As someone who’s already taken advantage of the government’s Cycle to Work scheme and is now eyeing up a new summer ride after a knee injury from an icy road fall, I can confidently say: yes, your company can buy you a bicycle even if you’re the only person on the payroll.

In fact, with our family transitioning to a one-car household this year, my new bike is going to be an essential part of daily life, commuting to the office and even making a quick trip to the gym. Thanks to current tax rules, it can be done in a way that’s cost-effective, tax-efficient, and beneficial for your health and the planet.

The Basics: How the Cycle to Work Scheme Works

The Cycle to Work initiative has been around since 1999, but it remains as relevant in 2025 as it was then, if not more so, given the rising cost of living and the push toward greener travel.

In short, your limited company can purchase a bicycle and related safety gear and loan it to you as an employee or director without triggering a taxable benefit. There’s no need for HMRC pre-approval, and no requirement for a formal written agreement.

Key Benefits for You and Your Company

• The company reclaims VAT on the bike (if VAT-registered).

• The full cost of the bike qualifies for capital allowances under the Annual Investment Allowance (AIA)—that’s a direct deduction from profits for corporation tax purposes.

• Safety gear, such as helmets, lights, high-visibility clothing, and locks, is considered a revenue expense and is fully deductible as well.

• No benefit-in-kind arises, provided certain conditions are met (see below).

• You personally save 20–25% by using gross company income to fund the purchase, rather than post-tax personal money.

But There Are Conditions

To qualify for these generous tax breaks:

1. The company must retain ownership of the bike throughout the loan period.

2. The bike must be used mainly (over 50%) for qualifying business journeys, commuting to your regular workplace, visiting clients, cycling to the station, or even between multiple work sites.

If you decide to buy the bike from your company later on, a taxable benefit will arise, based on the market value at the time of transfer, not the original purchase price. Still, this can be a smart move if the bike has significantly depreciated.

What Happens If Something Goes Wrong?

Since the bike remains a company asset, repair and maintenance costs can also be claimed as business expenses. After my recent fall on black ice, I’ve learned the value of quality tyres—and safety gear!

Mileage Claims for Personal Bikes

If you’re not going through the scheme but still cycle for work, you can claim 20p per mile for business-related travel using your own bicycle (e.g. to temporary workplaces or client visits). It’s not much, but it adds up, and every bit helps when you're burning calories instead of fuel.

Final Thoughts

With rising car costs, growing awareness of environmental impact, and the obvious health benefits of cycling (even with a dodgy knee), switching to pedal power just makes sense. Whether you're in a one-person limited company like me or running a small team, the current tax breaks make it a no-brainer to consider letting your business invest in a bike that works as hard as you do.

So yes—if you’re a company director, your company can buy you a bike. And if you’re anything like me, the only question is: which one are you getting for this summer?