Limited Company purchase of motorcycle

[(RIP) spike418]

Right,
OR -
There is the 100% Annual Investment Allowance - which I don't get.
It's a Ltd company in its first year of trading - does the AIA (above) mean that the asset can be written off in the first year, as there is a £50,000 allowance?

Finally, Fuel - I don't see how this works. I would pay for the 30% personal use fuel, and not claim for this. The 70% business use - do I just pay for the fuel through the company for this usage? Can anything be claimed back for this?
Would there be any NI contributions against this?

Thanks,

Chris

The rest looks ok to me.

The AIA can be claimed against the bike and write off the cost 100% in the first year (subject to the overiding limits for your company which will depend upon your accounting year and how much other plant and machinery purchased). AIA currently £100K up to next April.

If the company pays private fuel then that is added on to the BIK.

Class 1a NI is charged on the BIK at 12.8%.

Just out of interest, what is your annual mileage and the business private split. If you own the bike personally then you could claim 24p per mile. Always best to crunch the numbers and consider the alternatives

 

[scoobyears]

update motorcycle classed as "plant & equipment"

hi guys
i'm still a little suspicious of this idea were my ltd company can buy a new GS, which is classed as plant and equipment,
I then poodle about on it, keep a few receipts and "roberts your father brother"
is there anywere on hmrc or other trusted site that documentation can be found so i can show my accountant and get him on-side with this cunning plan... seems too easy...hmm. but then paying fing corporation tax is a bitter pill to swallow and i detest paying it, but a new GS in my man cave and no CT to pay sound like a plan i can get to like.. any info I would be muchly thankful

 

[Joe Bar]

The Guardian

 

[stolzy]

I had my bike as a company vehicle and it cost me a packet, though I can't recall the details. it cost more in tax than the company car.

 

[darkhorse]

Just claim mileage at 25p a click, much easier. Sure you can rack up a fair few 'business' miles a year

 

[IJGser]

Just claim mileage at 25p a click, much easier. Sure you can rack up a fair few 'business' miles a year

Better still if you prefer travelling by bike and you or your spouse owns a car claim milage allowance for that at 40p per mile

 

[darkhorse]

Better still if you prefer travelling by bike and you or your spouse owns a car claim milage allowance for that at 40p per mile

Now that would be dishonest, I would never had thought of that

I think you can get the first 10,000 miles at 40p, no questions asked, before the rate then drops down a bit.

If you we're that way inclined, far easier then messing around with company vehicle, taxed as benefit etc...

 

[stolzy]

Just claim mileage at 25p a click, much easier. Sure you can rack up a fair few 'business' miles a year

Definitely

 

[Clive]

I had my bike as a company vehicle and it cost me a packet, though I can't recall the details. it cost more in tax than the company car.

Depends on what proportion of mileage you did that was personal usage vs business usage.

e.g. if the company buys a £10,000 motorcycle then the starting point BIK deduction will be £2,000 i.e. if you are a 40% tax payer then that will "cost" you £800 per year.

BIK will apply if you use it for *any* personal mileage. 1 mile or 1000 miles - it doesn't matter.

However, it goes down proportionally with Business usage e.g. if you do 5,000 miles a year for Business and 5,000 miles for personal, then the BIK will be reduced by 50% i.e. £1,000 in the example above "costing" you £400 per year.

I only did 750 miles last year, but it was all business mileage so my tax "cost" was £zero.

 

[Clive]

hi guys
i'm still a little suspicious of this idea were my ltd company can buy a new GS, which is classed as plant and equipment,
I then poodle about on it, keep a few receipts and "roberts your father brother"
is there anywere on hmrc or other trusted site that documentation can be found so i can show my accountant and get him on-side with this cunning plan... seems too easy...hmm. but then paying fing corporation tax is a bitter pill to swallow and i detest paying it, but a new GS in my man cave and no CT to pay sound like a plan i can get to like.. any info I would be muchly thankful

Why do you need to "get him on side"?
If it is your company, it can purchase near enough what it likes. If your "poodling about" is for Business purposes then it won't cost you (as a personal taxpayer) anything.

If your "poodling about" is all personal, then it could get expensive (tax-wise). So I wouldn't recommend it for low overall mileage, with high personal %age of use.

 

[newboy]

Any new thoughts?

Sooo tempted to buy via company