Discussion
In short - very attractive, both to the company and to the employee. I can't remember the exact details but I know that, according to my accountant, it's a very tax efficient thing to do.
ETA to add a bit more info.
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.
The employee pays tax at their highest rate on the benefit in kind value. Therefore if they are a higher rate taxpayer and have a new motorbike costing £8,000 the extra tax they would pay would be £640 per annum. (£8,000 X 20% X 40%).
The company would also pay 12.8% National Insurance on this benefit amount as declared on the P11d. This is payable by 19th July after the end of the tax year.
ETA to add a bit more info.
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.
The employee pays tax at their highest rate on the benefit in kind value. Therefore if they are a higher rate taxpayer and have a new motorbike costing £8,000 the extra tax they would pay would be £640 per annum. (£8,000 X 20% X 40%).
The company would also pay 12.8% National Insurance on this benefit amount as declared on the P11d. This is payable by 19th July after the end of the tax year.
Edited by black-k1 on Wednesday 2nd April 08:41
black-k1 said:
In short - very attractive, both to the company and to the employee. I can't remember the exact details but I know that, according to my accountant, it's a very tax efficient thing to do.
ETA to add a bit more info.
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.
The employee pays tax at their highest rate on the benefit in kind value. Therefore if they are a higher rate taxpayer and have a new motorbike costing £8,000 the extra tax they would pay would be £640 per annum. (£8,000 X 20% X 40%).
The company would also pay 12.8% National Insurance on this benefit amount as declared on the P11d. This is payable by 19th July after the end of the tax year.
fjr1300ETA to add a bit more info.
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.
The employee pays tax at their highest rate on the benefit in kind value. Therefore if they are a higher rate taxpayer and have a new motorbike costing £8,000 the extra tax they would pay would be £640 per annum. (£8,000 X 20% X 40%).
The company would also pay 12.8% National Insurance on this benefit amount as declared on the P11d. This is payable by 19th July after the end of the tax year.
Edited by black-k1 on Wednesday 2nd April 08:41
here i come
Right, as an owner of a company bike and if you buy new or an ex-demonstrator, you should be able to recover the VAT:
On the cost of the bike
On the cost of fuel and maintenance etc
On the cost of suitable gear i.e. helmet, clothing and boots
- assuming that you're VAT registered of course.
Talk to your accountant - it's worth doing!
On the cost of the bike
On the cost of fuel and maintenance etc
On the cost of suitable gear i.e. helmet, clothing and boots
- assuming that you're VAT registered of course.
Talk to your accountant - it's worth doing!
Davel said:
Right, as an owner of a company bike and if you buy new or an ex-demonstrator, you should be able to recover the VAT:
On the cost of the bike
On the cost of fuel and maintenance etc
On the cost of suitable gear i.e. helmet, clothing and boots
- assuming that you're VAT registered of course.
Talk to your accountant - it's worth doing!
this just gets betterOn the cost of the bike
On the cost of fuel and maintenance etc
On the cost of suitable gear i.e. helmet, clothing and boots
- assuming that you're VAT registered of course.
Talk to your accountant - it's worth doing!
SplatSpeed said:
Davel said:
Right, as an owner of a company bike and if you buy new or an ex-demonstrator, you should be able to recover the VAT:
On the cost of the bike
On the cost of fuel and maintenance etc
On the cost of suitable gear i.e. helmet, clothing and boots
- assuming that you're VAT registered of course.
Talk to your accountant - it's worth doing!
this just gets betterOn the cost of the bike
On the cost of fuel and maintenance etc
On the cost of suitable gear i.e. helmet, clothing and boots
- assuming that you're VAT registered of course.
Talk to your accountant - it's worth doing!
Davel said:
Right, as an owner of a company bike and if you buy new or an ex-demonstrator, you should be able to recover the VAT:
On the cost of the bike
On the cost of fuel and maintenance etc
On the cost of suitable gear i.e. helmet, clothing and boots
- assuming that you're VAT registered of course.
Talk to your accountant - it's worth doing!
is that right, if so it looks like my company will be putting a deposit down on a 696 monster and a load of gear to go with it...On the cost of the bike
On the cost of fuel and maintenance etc
On the cost of suitable gear i.e. helmet, clothing and boots
- assuming that you're VAT registered of course.
Talk to your accountant - it's worth doing!
SplatSpeed said:
black-k1 said:
In short - very attractive, both to the company and to the employee. I can't remember the exact details but I know that, according to my accountant, it's a very tax efficient thing to do.
ETA to add a bit more info.
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.
The employee pays tax at their highest rate on the benefit in kind value. Therefore if they are a higher rate taxpayer and have a new motorbike costing £8,000 the extra tax they would pay would be £640 per annum. (£8,000 X 20% X 40%).
The company would also pay 12.8% National Insurance on this benefit amount as declared on the P11d. This is payable by 19th July after the end of the tax year.
fjr1300ETA to add a bit more info.
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.
The employee pays tax at their highest rate on the benefit in kind value. Therefore if they are a higher rate taxpayer and have a new motorbike costing £8,000 the extra tax they would pay would be £640 per annum. (£8,000 X 20% X 40%).
The company would also pay 12.8% National Insurance on this benefit amount as declared on the P11d. This is payable by 19th July after the end of the tax year.
Edited by black-k1 on Wednesday 2nd April 08:41
here i come
Fats25 said:
me too.....
Any ideas if you can get a car and a bike for a 1 person ltd company - or would this be pushing it too much for the Taxman?
I'll be honest I am useless at Tax issues, and only just set up my ltd company last week.
Been running my own ltd since early 2006... I think you'd be pushing it unless you have a secretary / another director registered on the company that you could put it through if see what I mean Any ideas if you can get a car and a bike for a 1 person ltd company - or would this be pushing it too much for the Taxman?
I'll be honest I am useless at Tax issues, and only just set up my ltd company last week.
Mr OCD said:
Fats25 said:
me too.....
Any ideas if you can get a car and a bike for a 1 person ltd company - or would this be pushing it too much for the Taxman?
I'll be honest I am useless at Tax issues, and only just set up my ltd company last week.
Been running my own ltd since early 2006... I think you'd be pushing it unless you have a secretary / another director registered on the company that you could put it through if see what I mean Any ideas if you can get a car and a bike for a 1 person ltd company - or would this be pushing it too much for the Taxman?
I'll be honest I am useless at Tax issues, and only just set up my ltd company last week.
By the way, I would seriously consider getting rid of the company car...the Benefit in Kind payments make it uneconomic for all but those doing interstellar mileages, especially for anything with four wheels that's interesting.
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