The tax deductibility of walking

cos it's fraud.

But how about actually going on your bike, then it wouldn't be

tim

Exactly. Meanwhile, corporation tax is entirely optional for multinationals. One has to love the joys of the tax system.

The broad point I'm obviously making is that Mr/Ms Taxman has no idea whether or not I used the bike, whereas challenging fraudulent claims for excessive car mileage is somewhat more doable.

What I also find interesting is the ratio of expenses. It seems to me that the bicycle rates are rather generous indeed. The implication from the current rates is that maintaining a bicycle is 44% of the cost of maintaining a car!

Needless to say I have suddenly remembered that I did indeed attend 90% of my jobs on my bicycle and have the bruises to prove it :-)

Reece

Profit is the biggest option. No profits == no corporation tax.

You should keep a log of when you use your bike.

Taxation rules don't have to follow true cost. How would you defend subsidies?

It just takes the evidence that you didn't on one of your named trips and you're in deep poo. Probability though is very small especially since the company accounts are submitted anything from 8 months to 20 months after the actual event!

What about taking the bicycle along, but walking while pushing it alongside you? Would that entitle you to claim 20p?

I do, but it doesn't really prove much, does it.

Just making an observation, that's all. I know there are quirks throughout the tax system; just discussing another one :-)

As you say, it seems like a pretty difficult thing to challenge. At least when considering cars you can investigate whether money was actually spent on the necessary running costs like fuel and MOTs. For a bike - maybe the odd new tyre?!

Reece

but no CT does not = no profit, it just means that you offshored the profit to a location with no corporate taxes.

tim

I had (and used) my bike for 25 years and I've never bought a new tyre.

tim

Then more fool us into allowing free trade with countries who offer low levels of corporation tax such as ROI and Switzerland.

More fool us for not having the same levels to encourage profit to the UK, and subsequent UK taxes.

how does having a CT rate of 0 to attract the profit, actually generate any taxes?

tim

When did ROI or Switzerland have 0%?

ROI - Trading income 12.5% Switzerland - 21%

UK - 21%

With respect, the main rate of corporation tax for companies with profits in excess of £1.5M is currently 24%. It is reduced to 23% next FY.

Perhaps the tax office needs to base taxation on revenue rather than profit on larger companies.

And I can't believe that anyone goes to the effort of setting up an offshore organisation to save 2% so I would suggest that the people who do funnel profits through CH have a special "agreement" in place. They do this for individuals so why not for companies.

tim

Are there legal requirements of using your bike for work, which may involve standing expenses? E.g. our local plod have been forced to do just that as a result of the enormous cost of professional maintenance of their pushbik es which is presumably an insurance requirement. IU that some household ins urance policies cover bike riders against damage/injury claims, but I bet t hey'd wriggle out if it's a customer's foot you run over.

Chris