There are two ways to buy a bike through your limited company. Firstly, your company could buy the bike outright and 'lend' it to you.
If you lend or hire a bicycle or cycling safety equipment to an employee, there are no reporting, tax or NIC requirements if the following conditions are met:
the bicycles or equipment are available to all your employees
the bicycles or equipment are used mainly for ‘qualifying journeys’ as described below.
A journey only counts as a qualifying journey in two situations:
if all or part of the journey is between home and workplace
if all or part of the journey is between workplaces.
This will give the same Corporation Tax saving, and you’d also be able to reclaim the VAT (unless using the flat rate scheme).
The second option would be to purchase the bike personally and claim back business mileage. You can keep up to date with current mileage rates in our Knowledge article.
If you use the bike under company ownership, record the purchase of the bicycle as Fixed Assets > Equipment Cost, and record the costs of running the bicycle as Motor Expenses > Company Bicycle Running Costs.
If you own the bike personally, calculate the mileage and record it under Motor Expenses > Mileage Allowance.