Company Motorcycle

[Ducati996R]

Hi.
Thinking of buying a motorbike thru my LTD company ...anyone done it ?

[trickywoo]

Lots of people.

You just have to be happy proving 100% business use when the VAT man visits.

Some people say they are happy with meeting fellow directors for business meetings on the bike on a Sunday.

Personally unless I was using it only for business I wouldn’t risk it and haven’t after looking into it.

Realistically you would need to demonstrate a history of business vehicle use and likely have another private bike at least.

[Ducati996R]

Was going down the route of 50/50 business/private use ....so only going for partial vat reclaim ...then BIK bill for me

[trickywoo]

Ducati996R said:

Was going down the route of 50/50 business/private use ....so only going for partial vat reclaim ...then BIK bill for me

Is it still worth it that way?

[sideways sid]

Pop a pizza delivery box on it?

[Ducati996R]

trickywoo said:

Is it still worth it that way?

Yes ..I think so
All the purchase price is offset against any profits before tax ....
Plus BIK is only 20% of purchase price unlike a car

[Eric Mc]

If you claim the 100% Annual Investment Allowance in the year of purchase (which you can) the sale proceeds will be 100% taxable when it is disposed of later.

[T5R+]

Couple of appealing parts..............(1) safety gear can be purchased against business - thick end of £2000 is substantial (2) all running costs can be put through the business - I have other motorcycle(s) and so would have had a "soley for business use motorcycle" (3) Eric already mentioned the AIA.

I wanted to use the AIA, run the item for 2-3years and sell/dispose of for "peanuts" BUT my accountant advised "fair market value needs to be charged" on sale. A £20K motorcycle is not worth £2-3K after 3 years in his view

It is a good approach if the numbers stack up and you are comfortable with it.

Edited by T5R+ on Saturday 14th August 07:51

[Eric Mc]

Yep - if ANY asset is taken out of a business and passed to the proprietor or any other connected person for no proceeds i.e. given away, HMRC insists that the disposal be treated as being transferred at "Market Value" for both Capital Allowance and/or VAT purposes.