It sounds too good to be true but if you work for yourself and want a brand new bike or scooter the cost can be written off against your tax bill. Intrigued? You’d better read on…

Self employed - 100% tax relief on new bikes 2Not only can you buy the bike of your dreams but the ‘nasty’ taxman will actually pay up to 40% of its cost for you. Yes that’s right, it’s a virtually unknown and hardly ever publicised tax break. It means 100% of the cost of your new bike can legitimately be written off against your tax bill. There’s no cc or CO2 limit either, so you can ride a moped, scooter, Harley or even a 200mph superbike.

The ruling was amended in April 2009, previously motorcycles were classed the same as a company car but all that changed when this helpful little nugget was slipped quietly into the finance act. It means that brand new motorcycles and scooters are treated as plant & equipment. In the first year of purchase 100% of the purchase price can be claimed back against them, providing you’re planning to use the bike solely for business purposes. If you also want to use it for pleasure a percentage can still be offset against capital allowances. When you sell the bike its value is added to any taxable profits but you can buy a new machine every year if you feel like it. Every self-employed person should make sure his, or her accountant is aware of this gem then make sure you go out and treat yourself to a new machine, the summer is here…

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The views shared are that of the author and are not necessarily that of Lexham Insurance Consultants Ltd.