Crikey! Man-Maths combined with Ltd Co purchase
Discussion
I pride my self that once-upon-a-time I got Maths O-level.
Then again, my skill at Man-Maths has, over the decades become finely honed. I can spend a bonus fifteen times and still not bankrupt myself.
But - cor! - I'm sure I have just manufactured £thousands just by thinking about a company purchase of the next Beano-Bike.
But, honestly, I've been weeks and weeks trying to understand all the tax implications, my accountant has explained it, my friends have explained it, Google has been good to me.
Why am I quite so thick that I cannot seem to understand it?
Anyway back on topic. I should probably stop arsing around and order a R1200RS - don't answer that bit, it isn't really a question!!!
Then again, my skill at Man-Maths has, over the decades become finely honed. I can spend a bonus fifteen times and still not bankrupt myself.
But - cor! - I'm sure I have just manufactured £thousands just by thinking about a company purchase of the next Beano-Bike.
But, honestly, I've been weeks and weeks trying to understand all the tax implications, my accountant has explained it, my friends have explained it, Google has been good to me.
Why am I quite so thick that I cannot seem to understand it?
Anyway back on topic. I should probably stop arsing around and order a R1200RS - don't answer that bit, it isn't really a question!!!
- but, I find it inexplicably difficult to understand!I've just bought another bike through my company. Unless rules have changed in the last 4 years, tax allows it to be written off in one year which is handy. I do offer motorcycle tuition (when I have time which hasn't be for a while) so also put the PPE i purchase, etc through as well
K12beano said:
I pride my self that once-upon-a-time I got Maths O-level.
Then again, my skill at Man-Maths has, over the decades become finely honed. I can spend a bonus fifteen times and still not bankrupt myself.
But - cor! - I'm sure I have just manufactured £thousands just by thinking about a company purchase of the next Beano-Bike.
But, honestly, I've been weeks and weeks trying to understand all the tax implications, my accountant has explained it, my friends have explained it, Google has been good to me.
Why am I quite so thick that I cannot seem to understand it?
Anyway back on topic. I should probably stop arsing around and order a R1200RS - don't answer that bit, it isn't really a question!!!
OT, sort of...Then again, my skill at Man-Maths has, over the decades become finely honed. I can spend a bonus fifteen times and still not bankrupt myself.
But - cor! - I'm sure I have just manufactured £thousands just by thinking about a company purchase of the next Beano-Bike.
But, honestly, I've been weeks and weeks trying to understand all the tax implications, my accountant has explained it, my friends have explained it, Google has been good to me.
Why am I quite so thick that I cannot seem to understand it?
Anyway back on topic. I should probably stop arsing around and order a R1200RS - don't answer that bit, it isn't really a question!!!
I understand exactly what you mean about the limited company tax implications and trying to figure it all out. I started up a few months ago and I'm just being to understand. The way I do it is-
Keep a cash book, Cash in Cash out
Whatever the accountant says you can draw in divs, minus your personal tax liability and the remaining fund is good to go
Expenses, the more the merrier! (company related only)
That's all there is to it, maybe...
I guess a lot depends on what your company does as to whether you could actually get the company to buy and own it as an asset and pay to run it :
If you're a motorbike sales centre, you'd have a good case to buy it
If you were a double glazing installation company, you obviously wouldn't
You possibly sit somewhere in the middle of those two, so only you and your accountant will know the right answer
If you're a motorbike sales centre, you'd have a good case to buy it
If you were a double glazing installation company, you obviously wouldn't
You possibly sit somewhere in the middle of those two, so only you and your accountant will know the right answer
You've got it Graeme.
I go and visit clients. Mostly I should be smart and in a business suit. I'm trying to get my next contract, some possibilities are in Central London. As far as I am concerned that's a Tube ride. No way do I anticipate parking a (new) bike in town. Then there's another possibility which is 6 months about 50 minutes away out in Berks. All the ammo I need to say a bike commute to client is obvious. Then I have possibilities which are overnight stays away, up north. I cannot justify to myself let alone Her Maj's Right Counters that it would be viable to trek around on two wheels.
And that's really my practical dilemma compared to the financial aspects. But luckily I won't have to carry double glazing units around with me........
I go and visit clients. Mostly I should be smart and in a business suit. I'm trying to get my next contract, some possibilities are in Central London. As far as I am concerned that's a Tube ride. No way do I anticipate parking a (new) bike in town. Then there's another possibility which is 6 months about 50 minutes away out in Berks. All the ammo I need to say a bike commute to client is obvious. Then I have possibilities which are overnight stays away, up north. I cannot justify to myself let alone Her Maj's Right Counters that it would be viable to trek around on two wheels.
And that's really my practical dilemma compared to the financial aspects. But luckily I won't have to carry double glazing units around with me........
If you have to do any travelling on behalf of your company then a motorcycle is an option. The question is not the amount of company travelling you do on it but the amount of personal use. If the company buys it, and you do 200 company miles a year and 12000 personal miles then the taxman will allocate the whole "benefit in kind" cost to you.
If you do 200 personal miles and 12000 company miles then the allocation of benefit in kind is minimal.
The easiest answer is to do no personal miles and only company miles. (Keep a log book to prove this). All bike costs, including servicing, tyres etc. and associated riding gear are then company costs with no benefit in kind implications.
If you do 200 personal miles and 12000 company miles then the allocation of benefit in kind is minimal.
The easiest answer is to do no personal miles and only company miles. (Keep a log book to prove this). All bike costs, including servicing, tyres etc. and associated riding gear are then company costs with no benefit in kind implications.
I looked at this from what I understand....
1) you buy a new bike for £12k you can claim the VAT back on it.....Or at least I think you can with big purchases like this.
2) obviously it comes as an outgoing/expense. this means £10k for example is taken from the company profits and isnt taxed at 20% then 27% thereafter at the end of your year.
3) As its plant you don't get hit from the tax man like a car. All servicing, insurance, tyres etc can be put through.
I don't know about writing it off after a year, I thought it was three, and if you sold it you didn't have to give the VAT from the sale back to HMRC.
I understand though you can sell it back to yourself for a stupid but not taking the piss market value, but it only works on bikes in the last 7 years or so.
The reason I never did this is because my commute from my place of work to the contract is actually a fair bit, I'm at least 50 miles a day, you could buy fuel through the company but not be able to claim 45p and 25p after 10,000 miles.
It certainly would be work looking at after 2 years on the same contract as HMRC removes the expenses travelling to that fixed place of work from your home.
If your going to use it every day It really could be a sensible option, however for me it'd be sat there most days when its raining and all of winter and would be tough to justify.
Not sure if you do trackdays or racing but speaking to accountants, its perfectly above board to sponsor yourself which would limit corp tax because naturally your advertising your business. Some accountants say it has to be justifiable, show sales from your sponsorship, which is hard if your a typical contractor, working for someone else.... But many will say perfectly legal and sensible, if they look and get picky the worse that will happen is you have to pay the tax back. This can always be calculated and put aside if this happens in a few years so you have the money to pay it, or if you are between contracts its handy to have as "redundancy money".
Always speak to the accountant however. You pay these guys to advise you of the legal ways in which you can incur less taxation. Do it all above board. It's very tempting to do a lot of it, I looked at loads of options but I drew the line when it was getting to the stage where the taxman was going to owe me money....
1) you buy a new bike for £12k you can claim the VAT back on it.....Or at least I think you can with big purchases like this.
2) obviously it comes as an outgoing/expense. this means £10k for example is taken from the company profits and isnt taxed at 20% then 27% thereafter at the end of your year.
3) As its plant you don't get hit from the tax man like a car. All servicing, insurance, tyres etc can be put through.
I don't know about writing it off after a year, I thought it was three, and if you sold it you didn't have to give the VAT from the sale back to HMRC.
I understand though you can sell it back to yourself for a stupid but not taking the piss market value, but it only works on bikes in the last 7 years or so.
The reason I never did this is because my commute from my place of work to the contract is actually a fair bit, I'm at least 50 miles a day, you could buy fuel through the company but not be able to claim 45p and 25p after 10,000 miles.
It certainly would be work looking at after 2 years on the same contract as HMRC removes the expenses travelling to that fixed place of work from your home.
If your going to use it every day It really could be a sensible option, however for me it'd be sat there most days when its raining and all of winter and would be tough to justify.
Not sure if you do trackdays or racing but speaking to accountants, its perfectly above board to sponsor yourself which would limit corp tax because naturally your advertising your business. Some accountants say it has to be justifiable, show sales from your sponsorship, which is hard if your a typical contractor, working for someone else.... But many will say perfectly legal and sensible, if they look and get picky the worse that will happen is you have to pay the tax back. This can always be calculated and put aside if this happens in a few years so you have the money to pay it, or if you are between contracts its handy to have as "redundancy money".
Always speak to the accountant however. You pay these guys to advise you of the legal ways in which you can incur less taxation. Do it all above board. It's very tempting to do a lot of it, I looked at loads of options but I drew the line when it was getting to the stage where the taxman was going to owe me money....
moanthebairns said:
I looked at this from what I understand....
1) you buy a new bike for £12k you can claim the VAT back on it.....Or at least I think you can with big purchases like this.
2) obviously it comes as an outgoing/expense. this means £10k for example is taken from the company profits and isnt taxed at 20% then 27% thereafter at the end of your year.
3) As its plant you don't get hit from the tax man like a car. All servicing, insurance, tyres etc can be put through.
I don't know about writing it off after a year, I thought it was three, and if you sold it you didn't have to give the VAT from the sale back to HMRC.
I understand though you can sell it back to yourself for a stupid but not taking the piss market value, but it only works on bikes in the last 7 years or so.
The reason I never did this is because my commute from my place of work to the contract is actually a fair bit, I'm at least 50 miles a day, you could buy fuel through the company but not be able to claim 45p and 25p after 10,000 miles.
It certainly would be work looking at after 2 years on the same contract as HMRC removes the expenses travelling to that fixed place of work from your home.
If your going to use it every day It really could be a sensible option, however for me it'd be sat there most days when its raining and all of winter and would be tough to justify.
Not sure if you do trackdays or racing but speaking to accountants, its perfectly above board to sponsor yourself which would limit corp tax because naturally your advertising your business. Some accountants say it has to be justifiable, show sales from your sponsorship, which is hard if your a typical contractor, working for someone else.... But many will say perfectly legal and sensible, if they look and get picky the worse that will happen is you have to pay the tax back. This can always be calculated and put aside if this happens in a few years so you have the money to pay it, or if you are between contracts its handy to have as "redundancy money".
Always speak to the accountant however. You pay these guys to advise you of the legal ways in which you can incur less taxation. Do it all above board. It's very tempting to do a lot of it, I looked at loads of options but I drew the line when it was getting to the stage where the taxman was going to owe me money....
I'm not an accountant but from my understanding you're almost right.1) you buy a new bike for £12k you can claim the VAT back on it.....Or at least I think you can with big purchases like this.
2) obviously it comes as an outgoing/expense. this means £10k for example is taken from the company profits and isnt taxed at 20% then 27% thereafter at the end of your year.
3) As its plant you don't get hit from the tax man like a car. All servicing, insurance, tyres etc can be put through.
I don't know about writing it off after a year, I thought it was three, and if you sold it you didn't have to give the VAT from the sale back to HMRC.
I understand though you can sell it back to yourself for a stupid but not taking the piss market value, but it only works on bikes in the last 7 years or so.
The reason I never did this is because my commute from my place of work to the contract is actually a fair bit, I'm at least 50 miles a day, you could buy fuel through the company but not be able to claim 45p and 25p after 10,000 miles.
It certainly would be work looking at after 2 years on the same contract as HMRC removes the expenses travelling to that fixed place of work from your home.
If your going to use it every day It really could be a sensible option, however for me it'd be sat there most days when its raining and all of winter and would be tough to justify.
Not sure if you do trackdays or racing but speaking to accountants, its perfectly above board to sponsor yourself which would limit corp tax because naturally your advertising your business. Some accountants say it has to be justifiable, show sales from your sponsorship, which is hard if your a typical contractor, working for someone else.... But many will say perfectly legal and sensible, if they look and get picky the worse that will happen is you have to pay the tax back. This can always be calculated and put aside if this happens in a few years so you have the money to pay it, or if you are between contracts its handy to have as "redundancy money".
Always speak to the accountant however. You pay these guys to advise you of the legal ways in which you can incur less taxation. Do it all above board. It's very tempting to do a lot of it, I looked at loads of options but I drew the line when it was getting to the stage where the taxman was going to owe me money....
When you sell the bike you have to charge VAT.
You can write the asset off in one year, thus allocating all the costs in that financial year, but the bike still has a value if/when you sell it so the entire sales value (ex VAT) is profit for the company in the year of sale.
You can sell it back to yourself (regardless of the age of the bike) at a commercial rate, so the sort of price you'd get from We Buy Any Bike or your local dealer doing a cash purchase in late October!!
Your 45p per mile travel claim is the car rate so you shouldn't be claiming if if your're using a bike. I can't remember the exact rate for a bike but I think it's around 12p per mile!
black-k1 said:
moanthebairns said:
I looked at this from what I understand....
1) you buy a new bike for £12k you can claim the VAT back on it.....Or at least I think you can with big purchases like this.
2) obviously it comes as an outgoing/expense. this means £10k for example is taken from the company profits and isnt taxed at 20% then 27% thereafter at the end of your year.
3) As its plant you don't get hit from the tax man like a car. All servicing, insurance, tyres etc can be put through.
I don't know about writing it off after a year, I thought it was three, and if you sold it you didn't have to give the VAT from the sale back to HMRC.
I understand though you can sell it back to yourself for a stupid but not taking the piss market value, but it only works on bikes in the last 7 years or so.
The reason I never did this is because my commute from my place of work to the contract is actually a fair bit, I'm at least 50 miles a day, you could buy fuel through the company but not be able to claim 45p and 25p after 10,000 miles.
It certainly would be work looking at after 2 years on the same contract as HMRC removes the expenses travelling to that fixed place of work from your home.
If your going to use it every day It really could be a sensible option, however for me it'd be sat there most days when its raining and all of winter and would be tough to justify.
Not sure if you do trackdays or racing but speaking to accountants, its perfectly above board to sponsor yourself which would limit corp tax because naturally your advertising your business. Some accountants say it has to be justifiable, show sales from your sponsorship, which is hard if your a typical contractor, working for someone else.... But many will say perfectly legal and sensible, if they look and get picky the worse that will happen is you have to pay the tax back. This can always be calculated and put aside if this happens in a few years so you have the money to pay it, or if you are between contracts its handy to have as "redundancy money".
Always speak to the accountant however. You pay these guys to advise you of the legal ways in which you can incur less taxation. Do it all above board. It's very tempting to do a lot of it, I looked at loads of options but I drew the line when it was getting to the stage where the taxman was going to owe me money....
I'm not an accountant but from my understanding you're almost right.1) you buy a new bike for £12k you can claim the VAT back on it.....Or at least I think you can with big purchases like this.
2) obviously it comes as an outgoing/expense. this means £10k for example is taken from the company profits and isnt taxed at 20% then 27% thereafter at the end of your year.
3) As its plant you don't get hit from the tax man like a car. All servicing, insurance, tyres etc can be put through.
I don't know about writing it off after a year, I thought it was three, and if you sold it you didn't have to give the VAT from the sale back to HMRC.
I understand though you can sell it back to yourself for a stupid but not taking the piss market value, but it only works on bikes in the last 7 years or so.
The reason I never did this is because my commute from my place of work to the contract is actually a fair bit, I'm at least 50 miles a day, you could buy fuel through the company but not be able to claim 45p and 25p after 10,000 miles.
It certainly would be work looking at after 2 years on the same contract as HMRC removes the expenses travelling to that fixed place of work from your home.
If your going to use it every day It really could be a sensible option, however for me it'd be sat there most days when its raining and all of winter and would be tough to justify.
Not sure if you do trackdays or racing but speaking to accountants, its perfectly above board to sponsor yourself which would limit corp tax because naturally your advertising your business. Some accountants say it has to be justifiable, show sales from your sponsorship, which is hard if your a typical contractor, working for someone else.... But many will say perfectly legal and sensible, if they look and get picky the worse that will happen is you have to pay the tax back. This can always be calculated and put aside if this happens in a few years so you have the money to pay it, or if you are between contracts its handy to have as "redundancy money".
Always speak to the accountant however. You pay these guys to advise you of the legal ways in which you can incur less taxation. Do it all above board. It's very tempting to do a lot of it, I looked at loads of options but I drew the line when it was getting to the stage where the taxman was going to owe me money....
When you sell the bike you have to charge VAT.
You can write the asset off in one year, thus allocating all the costs in that financial year, but the bike still has a value if/when you sell it so the entire sales value (ex VAT) is profit for the company in the year of sale.
You can sell it back to yourself (regardless of the age of the bike) at a commercial rate, so the sort of price you'd get from We Buy Any Bike or your local dealer doing a cash purchase in late October!!
Your 45p per mile travel claim is the car rate so you shouldn't be claiming if if your're using a bike. I can't remember the exact rate for a bike but I think it's around 12p per mile!
What the op has to ask himself is, will he be claiming other travel expenses and if so, how much.
lets say he does 1000 miles a month. If he does 900 on the bike then great. Go for it.
If he does 100 and uses the train/car for the other 900 they could see this as a tax dodge. That's why I wouldn't do it as this would be me.
Also remember dont get tempted to fill up your car on fuel because you can claim its the bike. The first £50 receipt for fuel the tax man sees he's going to know your taking the piss.
A really sensible option is a decent van for bikers looking at it. Doesn't get hit with car tax, obviously you'll use it for personal use if its a decent one. Handy for a bike in the back for trackdays. That's why I understand a lot of VW transporters are popular with contractors as its as close to a car as a van will come and liveable as the only vehicle in the household. As much as I loved my Berlingo, you couldn't show up for a wedding or a meal in one and it was brutal to live in all the time.
The only time id consider a bike for the company was if your contract place of work was a few miles away. High miles will totally devalue a bike lets be honest most arent going to ride to work everyday. But if your only putting in 200 miles a month in travel expenses its hardly worthwhile claiming the £90, at most the true value of this is a saving of £25 ish a month on tax.
So less than £500 a year saving on corp tax compared to £10,000, no brainier.
Edited by moanthebairns on Friday 28th April 10:27
moanthebairns said:
A really sensible option is a decent van for bikers looking at it. Doesn't get hit with car tax, obviously you'll use it for personal use if its a decent one. Handy for a bike in the back for trackdays. That's why I understand a lot of VW transporters are popular with contractors as its as close to a car as a van will come and liveable as the only vehicle in the household. As much as I loved my Berlingo, you couldn't show up for a wedding or a meal in one and it was brutal to live in all the time.
A few friends of mine got LR Discos as 'Vans' which don't get hit with car tax. Apparently you buy them with the rear seats stripped out and plastic covering all over. Then once that's been bought you get it all reinstalled for not too much.Edited by moanthebairns on Friday 28th April 10:27
moanthebairns said:
black-k1 said:
moanthebairns said:
I looked at this from what I understand....
1) you buy a new bike for £12k you can claim the VAT back on it.....Or at least I think you can with big purchases like this.
2) obviously it comes as an outgoing/expense. this means £10k for example is taken from the company profits and isnt taxed at 20% then 27% thereafter at the end of your year.
3) As its plant you don't get hit from the tax man like a car. All servicing, insurance, tyres etc can be put through.
I don't know about writing it off after a year, I thought it was three, and if you sold it you didn't have to give the VAT from the sale back to HMRC.
I understand though you can sell it back to yourself for a stupid but not taking the piss market value, but it only works on bikes in the last 7 years or so.
The reason I never did this is because my commute from my place of work to the contract is actually a fair bit, I'm at least 50 miles a day, you could buy fuel through the company but not be able to claim 45p and 25p after 10,000 miles.
It certainly would be work looking at after 2 years on the same contract as HMRC removes the expenses travelling to that fixed place of work from your home.
If your going to use it every day It really could be a sensible option, however for me it'd be sat there most days when its raining and all of winter and would be tough to justify.
Not sure if you do trackdays or racing but speaking to accountants, its perfectly above board to sponsor yourself which would limit corp tax because naturally your advertising your business. Some accountants say it has to be justifiable, show sales from your sponsorship, which is hard if your a typical contractor, working for someone else.... But many will say perfectly legal and sensible, if they look and get picky the worse that will happen is you have to pay the tax back. This can always be calculated and put aside if this happens in a few years so you have the money to pay it, or if you are between contracts its handy to have as "redundancy money".
Always speak to the accountant however. You pay these guys to advise you of the legal ways in which you can incur less taxation. Do it all above board. It's very tempting to do a lot of it, I looked at loads of options but I drew the line when it was getting to the stage where the taxman was going to owe me money....
I'm not an accountant but from my understanding you're almost right.1) you buy a new bike for £12k you can claim the VAT back on it.....Or at least I think you can with big purchases like this.
2) obviously it comes as an outgoing/expense. this means £10k for example is taken from the company profits and isnt taxed at 20% then 27% thereafter at the end of your year.
3) As its plant you don't get hit from the tax man like a car. All servicing, insurance, tyres etc can be put through.
I don't know about writing it off after a year, I thought it was three, and if you sold it you didn't have to give the VAT from the sale back to HMRC.
I understand though you can sell it back to yourself for a stupid but not taking the piss market value, but it only works on bikes in the last 7 years or so.
The reason I never did this is because my commute from my place of work to the contract is actually a fair bit, I'm at least 50 miles a day, you could buy fuel through the company but not be able to claim 45p and 25p after 10,000 miles.
It certainly would be work looking at after 2 years on the same contract as HMRC removes the expenses travelling to that fixed place of work from your home.
If your going to use it every day It really could be a sensible option, however for me it'd be sat there most days when its raining and all of winter and would be tough to justify.
Not sure if you do trackdays or racing but speaking to accountants, its perfectly above board to sponsor yourself which would limit corp tax because naturally your advertising your business. Some accountants say it has to be justifiable, show sales from your sponsorship, which is hard if your a typical contractor, working for someone else.... But many will say perfectly legal and sensible, if they look and get picky the worse that will happen is you have to pay the tax back. This can always be calculated and put aside if this happens in a few years so you have the money to pay it, or if you are between contracts its handy to have as "redundancy money".
Always speak to the accountant however. You pay these guys to advise you of the legal ways in which you can incur less taxation. Do it all above board. It's very tempting to do a lot of it, I looked at loads of options but I drew the line when it was getting to the stage where the taxman was going to owe me money....
When you sell the bike you have to charge VAT.
You can write the asset off in one year, thus allocating all the costs in that financial year, but the bike still has a value if/when you sell it so the entire sales value (ex VAT) is profit for the company in the year of sale.
You can sell it back to yourself (regardless of the age of the bike) at a commercial rate, so the sort of price you'd get from We Buy Any Bike or your local dealer doing a cash purchase in late October!!
Your 45p per mile travel claim is the car rate so you shouldn't be claiming if if your're using a bike. I can't remember the exact rate for a bike but I think it's around 12p per mile!
What the op has to ask himself is, will he be claiming other travel expenses and if so, how much.
lets say he does 1000 miles a month. If he does 900 on the bike then great. Go for it.
If he does 100 and uses the train/car for the other 900 they could see this as a tax dodge. That's why I wouldn't do it as this would be me.
Also remember dont get tempted to fill up your car on fuel because you can claim its the bike. The first £50 receipt for fuel the tax man sees he's going to know your taking the piss.
A really sensible option is a decent van for bikers looking at it. Doesn't get hit with car tax, obviously you'll use it for personal use if its a decent one. Handy for a bike in the back for trackdays. That's why I understand a lot of VW transporters are popular with contractors as its as close to a car as a van will come and liveable as the only vehicle in the household. As much as I loved my Berlingo, you couldn't show up for a wedding or a meal in one and it was brutal to live in all the time.
The only time id consider a bike for the company was if your contract place of work was a few miles away. High miles will totally devalue a bike lets be honest most arent going to ride to work everyday. But if your only putting in 200 miles a month in travel expenses its hardly worthwhile claiming the £90, at most the true value of this is a saving of £25 ish a month on tax.
So less than £500 a year saving on corp tax compared to £10,000, no brainier.
Edited by moanthebairns on Friday 28th April 10:27
I do no personal miles on my company bike (I have my own personal bike for personal miles) and thus have no personal tax implications. I do arrange some company meetings for weekends and take the bike on those.
As the bike is a company asset, then buying it through the company but only doing a small mileage could not be seen as a tax dodge as long as you don't rack up huge personal miles. (Although you'd be paying personal tax on benefit in kind for most of the bike costs.) There is no tax requirement to "fully utilise" a company asset although buying a £10,000 bike, adding 1000 miles to it over a year then selling it (especially to yourself) at £2500 would likely get the attention of HMRC. Buying a £10,000 bike, adding a 1000 miles a year for 3 years then selling it for £5,000 would likely not be an issue.
Buying my previous K1300S for around £15,000 allowed me to recover 40% (VAT and Corp. tax) in the first year. After three years and 56k miles I sold if for around £4000 inc. VAT. Including the cost of fuel, tyres, servicing etc. that still cost the company less that a train season ticket, car parking at the station car park and the car miles I'd need to do each day, plus it saved me a significant amount of time and made commuting a significantly less unpleasant experience.
If you want a bike, and will use it (exclusively) for company journeys then it really does offer a significant saving, even compared to claiming 45p per mile wile using your own bike.
This is fascinating.
1. I would like to get a bike but would do less then 1000 business miles for certain. I would combine this with car and train travel.
It would be nice to sell it back to myself for a 'fair' price in 3 years. still seems worth it if I have understood what I have read.
2. I actually need to buy a transporter but hadn't considered buying it through the business. However this wouldn't be a panel van. It would be a people carrier and so not a plain van as such. I am not sure if VW would be up for removing seats and covering the inside with plastic sheet.
If I completely misunderstood please correct me as I am not so hot in this space.
1. I would like to get a bike but would do less then 1000 business miles for certain. I would combine this with car and train travel.
It would be nice to sell it back to myself for a 'fair' price in 3 years. still seems worth it if I have understood what I have read.
2. I actually need to buy a transporter but hadn't considered buying it through the business. However this wouldn't be a panel van. It would be a people carrier and so not a plain van as such. I am not sure if VW would be up for removing seats and covering the inside with plastic sheet.
If I completely misunderstood please correct me as I am not so hot in this space.
I bought a VW Kombi transporter through my company last year and have done 50k on my contracts mainly cornwall to sheffield
Very nice year of ownership and a few simple mods quieten it down to almost car levels of noise. Seats clip out to use as a van and carpeted insulated its a nice place to live and plenty of room for moving bike gear around
Caravelle door seals were the best £25 I've spent tho.
Hadn't thought about a bike but was looking for a 2nd van to add to even out the miles.
How does the tax fair to do 1000 miles a week on a bike? My contract is driving to the coast everyday to holiday parks to oversee telecoms work (fibre to the caravan...I sh*t you not)
Very nice year of ownership and a few simple mods quieten it down to almost car levels of noise. Seats clip out to use as a van and carpeted insulated its a nice place to live and plenty of room for moving bike gear around
Caravelle door seals were the best £25 I've spent tho.
Hadn't thought about a bike but was looking for a 2nd van to add to even out the miles.
How does the tax fair to do 1000 miles a week on a bike? My contract is driving to the coast everyday to holiday parks to oversee telecoms work (fibre to the caravan...I sh*t you not)
old No 1 said:
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How does the tax fair to do 1000 miles a week on a bike? My contract is driving to the coast everyday to holiday parks to oversee telecoms work (fibre to the caravan...I sh*t you not)
Charge all bike costs as a company expense so save on corporation tax. This includes servicing, running costs, riding kit etc. Recover all VAT as per any other company purchase although if you're on the flat rate scheme you can only recover the VAT from the purchase of an asset worth more than £2000.How does the tax fair to do 1000 miles a week on a bike? My contract is driving to the coast everyday to holiday parks to oversee telecoms work (fibre to the caravan...I sh*t you not)
If you use the bike for personal use then a pre-rata of the bike costs will be seen as benefit in kind with associated personal tax implications.
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