What is the tax liability for a company motorcycle?

[THEPUMA]

How are you working that out?

I thought Alan's point was either:

1) If 20% of mileage was personal, there would be a BIK of 20% of the running costs. I would have to pay tax on this BIK
2) If 20% of mileage was personal, I would have to pay the company 20% of running costs

I think he meant 1)

Sorry I missed the bit about 20% of the mileage being company-related. However, this being the case it is worth noting that the benefit on the bike reduces by 80% also. So £640 would be reduced to £128.

[adart]

I've heard that another "advantage" of putting a bike (or a car) through ltd co makes motoring offences particularly speeding tickets more difficult for the law to chase up if they cannot identify a named driver and only have a ltd co name at an anonymous registered address to work with. Depends on your ethics I suppose.

[Hiram King Of Tyre]

OK so lets say the bike (inc clothing) costs £8812.50 inc vat and the annual running costs are £1000, is this correct:


Bike price ex vat £7,500.00
Bike price inc vat £8,812.50
Servicing Tax Ins spares etc £1,000.00
Cost to company for BIK £9,812.50
NI payable by co £211.50
BIK £1,762.50
Tax payable @ 22% £387.75
Tax payable @ 40% £705.00


The company reclaims £1312.50 Vat


Now if that is right:

Do the figures change if say I do 3000 business miles and 2000 private miles?
Does the company pay for the petrol and how does that affect tax liability?
If I pay the petrol, do I then claim for business miles (like you would in a company supplied car?)
If I pay salary and divvies up to say just below the 40% threashold, is the BIK assessed at 22% (my highest tax rate) or does the BIK get added to my salary and therefore charged at 40%?

[Crossroads]

I've heard that another "advantage" of putting a bike (or a car) through ltd co makes motoring offences particularly speeding tickets more difficult for the law to chase up if they cannot identify a named driver and only have a ltd co name at an anonymous registered address to work with. Depends on your ethics I suppose.

Not really, the NIP is sent to the registered keeper, failure to identify driver will likely result in the Co Sec getting the points.

[Hiram King Of Tyre]

I just phoned HMRC, they tried to tell me that 100% of the bike is considered BIK in yr one and that is it! Surely not, it's not my bike!

They've gone away to find out......

[Moscow Mule]

A bump to this thread - has anything changed since this thread 3 years ago?

I found this little ditty, http://www.taxationweb.co.uk/forum/c...ns-t12063.html which doesn't seem to contradict this thread.

Another thing - If I'm over the 2 year limit on expenses, does a bike become 100% BIK?

Just getting an idea before I ask the accountant...

[Moscow Mule]

re-bump - anyone? Not even a sarcastic comment?

[northernladuk]

Too busy shaking my head thinking WTF???? and why??? to even bother thinking about anything sarcastic

How's that ?? lol

[Olly]

would be v interested to hear the answers though.
just bought a new bike...suppose I could sell it to company.
fancy a bit of a stable so may buy another.
is there anything interesting re: depreciation of the bike?
flat rate VAT but I guess since over 2K that could be reclaimed

[monkeyboy]

Also very interested on business mileage and the 2 year rule.