Company Motorcycles?

[Kris]

Any accounting gurus able to clear up a few things?

I see that Motorcycles are classed as plant and machinery, and can be purchased under something called AIA/Annual Investment Allowance of up to £50k.

If I keep it as a purely business vehicle (i.e. no personal use) it appears I can also claim back the VAT too, plus all running costs, maintenance etc.

Does anyone have experience of this? My accountant is pretty negative about company vehicles but I believe they have only dealt with cars before, which are treated differently.

Cheers
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NSR125RR - ZXR750H1 - ZX9R E1 - GSF600S - GSF600SK3 - VFR400-NC30 - SV1000N - ST1100-R - CBR900RR-R - GSF1200SK5 - GSF600SK1 - VFR1200FA - GSXR1000K2 - ZZR1400 D8F
www.prisonplanet.com

[Taught2BCauti...]

It depends on what you are using the bike for - business transport, or as a revenue source (such as hiring it out, or using it as a movie prop).

I was self-employed when I bought my bike in 2008, and could have claimed for it as a legitimate business expense as a vehicle - but found it more 'tax-efficient' to claim for using the car instead

If you feel your accountant is giving poor advice, get a new accountant!
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Honda Varadero XL125(V8)
www.TheFutureIsHere.eu

[1198]

So a Ducati Desmodecici could be made as a tax claimable expense!

[Kris]

[lihp]

2009 is quite a while back.

I'd be considering another if they're 6 years out of date
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covent.gardens: lihp is my most favourite member ever

[Taught2BCauti...]

It might be worth considering the option of claiming a fixed-rate mileage allowance, rather than claiming back VAT - but that depends on specific circumstances as well as current HMRC guidelines.

In the 2008-2009 tax year, I was sub-contracting to a company in London, and got paid a fixed amount per journey, which included parking and congestion charge, so a bike seemed the obvious way to go for me at the time, as the expenses were the same if you used a car, the tube, a bicycle, or walked.

The expenses paid for the bike within 4 months, and I still use the bike for work now, whenever possible.

I know that at the time, this was the best way to go for me - but it's still worth asking about all your options.

I have even heard about people thinking about claiming mileage for a car and actually using a bike - but I don't know anyone who would do such a thing
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Honda Varadero XL125(V8)
www.TheFutureIsHere.eu

[Kris]