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  • There's definitely a rule saying they can't pass on VAT savings, which would imply they have to recover the full amount.

    They would be recovering the full amount by charging 75% of the full amount over the year and then retaining ownership of a bike worth, according to HMRC, £250 after that time. The accountants should be happy with that.

    If they then sell you the bike for £250 at the end of the year, they will have loaned out £1,000 and got back £1,000. If they are charging more than £750 over the 12 months, they are making a profit out of you.

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