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Business bikes benefit from 100% tax write-off

TAKE to the road on a motorbike – and receive a 100% tax write off. Martyn Moore, editor of PeterboroughBusiness.co.uk, reports.

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10 January 2012

TAKE to the road on a motorbike – and receive a 100% tax write off. Martyn Moore, editor of PeterboroughBusiness.co.uk, reports.MOTORCYCLES qualify for up to 100% tax write off if used in a business, since the tax status of a Harley or a Honda changed in April 2009.

While there has been plenty of discussion in Business Car Manager about the tax laws regarding company cars, there’s been nothing about motorbikes.

But I discovered this useful gem about motorbikes when I was speaking to Ken Craig from Peterborough accountant Rawlinsons.

This is what Ken had to say: “From April 2009 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.”

For bikers in business this is good news, especially those who are are self-employed and higher rate tax payers.

“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,” said Mr Craig. “If you could write off the cost of a L10,000 machine and you were a 40% tax payer, you would possibly carve L4,000 off your tax bill.”

As with all tax planning, of course, the devil is in the detail. But if you run a motorbike on your business, then it’s worth taking some advice from your accountant.

Download our new business car tax guide

If bikes aren’t your thing but you would like to know more about the tax changes and how it affects company cars and business cars, then read our new guide to the tax rules on business cars. You can download it for free by clicking on this highlighted link The BIG tax change (PDF 518KB).

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Ralph Morton

Ralph Morton

Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.

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