Buying a motorbike through a Ltd Company...

[PermMCCon]

Hi All,

New to the forum etc, yes yes I know I could do a search and see what comes up on Google or CUK, but there's nothing like real life experience to tell you what's what. There's a lot of docs etc and I have off course talked to my accountant.

Nonetheless, what do you guys think of buying a motorbike (no no not a van or a car, a motorbike) through your Ltd Company for genuinely travelling to work 2-5days a week?

BIK too much? I understand its 20% of the bike price and thats it?

Any reasons you think its a big no no?

Was thinking about it, would be useful to get some thoughts.


Thanks

[Kenny@MyAccountantFriend]

Bikes are not taxed as heavy as cars through the company so can be more tax efficient for you.

The BIK is not just based on the bike cost though it also includes the running costs and expenses each year too.

If including business use some vat can often be reclaimed even on the FRS, depending on purchase price.

[northernladuk]

Some idiot started a thread about this awhile ago. Some useful info in it that might help...

http://forums.contractoruk.com/accou...h-company.html

[Danglekt]

the BIK only kicks in if you have any private usage.

If you can prove it is exclusively for business use (and my accountant suggested having proof) and it is never used for personal there is no BIK as the commute by your home office to the client site is business.

[Kenny@MyAccountantFriend]

the BIK only kicks in if you have any private usage.

If you can prove it is exclusively for business use (and my accountant suggested having proof) and it is never used for personal there is no BIK as the commute by your home office to the client site is business.

Provided the temporary workplace rules apply as if not the commute to work is not business related.

A single journey for personal reasons makes the BIK apply so proof of business journeys is a must if taking that route.

[northernladuk]

I though just having a vehicle on your drive at night made it available for private use therefore BiK kicks in.

[PermMCCon]

Hi Guys,

Thanks for the prompt feedback. "NorthernLad" added a link to an old thread that was useful, the basics copied below:

---------------------------------------------------

To buy the bike through the company
•Ask for the invoice to be in the company name
•Ask for the V5 to refer to you as the registered keeper at your home address
•Have your company buy the insurance in your name
•have you company buy your protective gear
•reclaim the vat
•ask your Accountant to claim 100% annual investment allowance in 1st year
•Use your company debit card to purchase all fuel and consumables ongoing
•Your company pays for all parts, servicing, tyres…..

So say the bike costs £6000 inc vat you'll get £1000 vat back and a £1000 reduction in your corporation tax
---------------------------------------------------

However, from what I read you can only do the above if the bike is solely used for travel to work. Which this won't be. It will be a mix of both.

I'll continue with my accountants advice by the looks of things, but thanks anyway.

[SimonMac]

Is it a Ninja? Will you polish it?

[Snarf]

I though just having a vehicle on your drive at night made it available for private use therefore BiK kicks in.

Not necessarily, I used to work at a co where the contracts stated that once they got home the company vehicles were not to be used, no transport of family in the etc (my friends wife had to drop the kids despite the school being his route to work because of this)... Don't know if that affects the BiK or if that's even why the company did it... But its something to consider..
Give yourself a 0 hours contract that states you have use of a vehicle for work only.

I'd speak to an accountant first though...

[LondonManc]

Is it a Ninja? Will you polish it?

Is polishing the ninja a euphemism?