Company vehicle Tax - Motorcycle
 

I may have an opportunity to get a motorcycle instead of a car as a company vehicle. I have looked online and cant seem to find what the tax situation would be, does anybody on here know?

Re: Company vehicle Tax - Motorcycle
 

Got no idea but jammy git!

Re: Company vehicle Tax - Motorcycle
 

Trusting company. Most of them are scared of corporate manslaughter and tend to avoid them as company vehicles due to increased risk.

Re: Company vehicle Tax - Motorcycle
 

I assume this is a perk and not as a job requirement. I used to do 40,000 miles per year and would hate to do it on a bike.

Re: Company vehicle Tax - Motorcycle
 

And full safety kit as well?
after all their insurance will insist that the kit used is top notch so get them to pay for that too ;)

Re: Company vehicle Tax - Motorcycle
 

Something I dragged up which sounds right..

The benefit in kind value of the asset is calculated as 20% of the total cost (including VAT) of the motorbike. Therefore if the motorbike costs a total of £8,000, the benefit in kind to the employee will be £1,600 (£8,000 X 20%).

The benefit is apportioned where it is only available for part of a year.

The tax charge continues to be payable for as long as the asset is made available.

so if the BIk is 1600 this comes out of your tax code of 7475 which ls 5875 so your tax code would be 587L

sick that in listen to taxman.com and see what net figure is deducted.

Re: Company vehicle Tax - Motorcycle
 

There is no BIk if the motorbike would only be used for work. (e.g no private mileage) However, I'd have to say that you'd be lucky to get away with that, because who wouldn't take out their bike on a nice day? :)

So assuming you do have personal use, yes you pay tax on it as a benefit in kind because as I understand it, the vehicle is actually classed as a company asset, not a company vehicle (which means it is treated differently).

The tax liability is 20% of the value (including VAT I believe) but the company can claim VAT back if they are VAT registered (again as far as I know.)

The company also has to pay national insurance on the benefit in kind at 12.8% so if it's your company that's just a wee extra cost to consider.

The company can claim capital allowances on the vehicle (assuming they are not being used elsewhere) and the vehicle can be depreciated over a few years leaving a very reasonable value for you to buy the bike at the end of it.

Also bear in mind you can claim for:

Business fuel
All protective equipment
Maintenance/Servicing
Tax
Insurance

The personal fuel element you should be paying for and a 'log' should really be kept to show what personal mileage you do and business mileage.

The best thing to do if you are going this route is to make sure your accountant/company accountant has a good grasp of the tax implications as you do not want to be upsetting the taxman by buying an 'executive toy'.

If it's not used for business, they will come down on it. (If they spot it)