Home / Search Forums / Bikes, Products & Services /

Save upto 40% on a new bike

Posts: 25 Pages: 1/2

Brummie Jackie
In: Hobbit HQ
Posts: 20751
Karma:

Motorcyclists can save up to 40% on the price of a bike following a quiet change to tax law, experts have said. Buried in the recent Finance Act is a change which makes motorcycles used for work 100% tax deductable, according to leading accountants. It means self-employed riders who pay 40% tax can save the same percentage on the price of a new bike by getting it wiped off their tax bill. That brings the cost of a Honda Fireblade down from £9221 to £5532. John Shaw of accounting firm Bentleys said: "Motorcycles are no longer treated for tax purposes like cars but as plant and equipment. This has a significant affect on the amount of tax relief you can claim when you buy a motorcycle for use in your business. "Company cars are now limited to a 20% or 10% annual tax write down unless they have a carbon footprint below 110g/km, in which case you may qualify for a 100% allowance. "The same criteria no longer apply to motorcycles. Whatever their CO2 emission, 100% of the cost is potentially available as a tax write off in the year of purchase. "The change in tax status does seem to open up tax planning opportunities to business owners who can justify the use of a motorcycle in their business. If you could write off the cost of a £10,000 machine and you were a 40% tax payer, you would possibly carve £4,000 off your tax bill." To take advantage of the tax break riders must claim the bike’s cost as a capital allowance on their tax return, according to Bentleys. Sean Byrne, tax consultant for accounting firm Haslers, said: "Effectively the Finance Act has changed the definition of a car. Whereas before it included motorcycles, now motorcycles are plant and machinery."

Motorcyclists can save up to 40% on the price of a bike following a quiet change to tax law, experts have said. 
Buried in the recent Finance Act is a change which makes motorcycles used for work 100% tax deductable, according to leading accountants. 
It means self-employed riders who pay 40% tax can save the same percentage on the price of a new bike by getting it wiped off their tax bill. 
That brings the cost of a Honda Fireblade down from £9221 to £5532.
John Shaw of accounting firm Bentleys said: "Motorcycles are no longer treated for tax purposes like cars but as plant and equipment. This has a significant affect on the amount of tax relief you can claim when you buy a motorcycle for use in your business.
"Company cars are now limited to a 20% or 10% annual tax write down unless they have a carbon footprint below 110g/km, in which case you may qualify for a 100% allowance. 
"The same criteria no longer apply to motorcycles. Whatever their CO2 emission, 100% of the cost is potentially available as a tax write off in the year of purchase.
"The change in tax status does seem to open up tax planning opportunities to business owners who can justify the use of a motorcycle in their business. If you could write off the cost of a £10,000 machine and you were a 40% tax payer, you would possibly carve £4,000 off your tax bill."
To take advantage of the tax break riders must claim the bike’s cost as a capital allowance on their tax return, according to Bentleys.
Sean Byrne, tax consultant for accounting firm Haslers, said: "Effectively the Finance Act has changed the definition of a car. Whereas before it included motorcycles, now motorcycles are plant and machinery."

Bikes, Products & Services