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…
Not 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…
Before you go
If you are thinking about purchasing yourself a new bike, or perhaps you already have one, it is important to remember to insure it - make sure to get a motorcycle or scooter insurance direct with Lexham!
