• I'm not too sure on the bike purchase thing, but my accountant asks for my mileage as you can claim a certain amount per mile. I must ask about the purchase of a new bike though.

    Bike bought for cycle to work scheme. Actually there is no requirement for you to pay for it as a sole trader, but you might wish to do this as part of how you take money out of the business (applies to those who have limited companies typically). If you leave it in the business then you can get capital allowances on it (though if I recall VAT on the purchase is no longer reclaimable - buy second hand and don't worry about this anyway).

    Your private use (commuting) of the bike is a taxable benefit, in the same way that your private use of a business car would be, except that the benefit rate has been set to nil, unlike any other private use of business assets.

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