Buying a motocycle/scooter through the company

[Wanderer]

Bikes are that cheap anyway that the 25p a mile is probably most efficient.

Not the ones I want to ride. And I would do quite low mileage with very little private use but I understand how a cheap and cheerful bike might be better off with 25p/mile and keep it simple...

Getting a company van is the only real way to have a company vehicle and be tax efficient.

Quite true, though not a great option if you work in the centre of a large city like London.

It was invoiced to the company, the registered keeper is myself and it is insured in my name with full business use included.

Interesting to hear from someone who has done it and useful information about the registered keeper thanks for sharing that.

[smalik]

Help with Insurance

Hi Nigel,

I am planning to buy the MP3 500 LT this Saturday. It doesnt need a bike license and a car license can be used to ride it due to the space between the front 2 wheels being 465mm from point of contact on ground. Please advise what problems you encountered and whether a 2013 reg 500 is likely to have the same.

Can I also please ask you what is the best way to purchase this scooter and protective gear so it incurs least amount of tax etc. If I invoice it to Ltd and have registered in my name inc insurance how would I go about getting the best out of that situation, what can and cant I claim back. Please advise and I will email my accountant with your advise so he can make sure it is acted upon when I send him the invoice.

I would also like to add that this is purely for business commute and no personal use at all as I have my car for that. Also could you please advise some insurers who would insure in such circumstances? I am to buy this Sat 7th Sep so it would be great to receive a reply as soon as possible.


Thank you.

First of all have you purchased the Piaggio yet? What kind of distance are you intending to travel each day? Do you have a bike license? (I presume yes since you talk about the 500). Over the years I've had nothing but Piaggios (Typhoon 50, X9 125, X9 500, Zip 100) however after 6 months with an MP3 300 I'm not going to having another, too many problems. Drop me an email if you want to know what the problems people are encountering are.

I purchased a Honda NC700X (dual clutch auto) through the company. It was invoiced to the company, the registered keeper is myself and it is insured in my name with full business use included. By purchasing it through the company you get the VAT back and also you can get 100% allowance in the first year against profit (I think that' the correct way of putting it). If you use the bike 100% for business purposes there is no benefit in kind. If you do use the bike personally you either have to reimburse the company for that proportion of the running costs or you'll incur the BIC charge - not good! So fuel, protective gear, servicing etc goes through the company.

This worked out well for me though as mentioned the 25p per mile would probably be better if you have significant personal use.

[nigelspencer]

First of all.....

I'm assuming you've not ridden a bike before as you mention the riding it on your car licence - whatever you do go and do your bike training as it will give you lots of information about staying alive! Bikes are not like cars and it's better to find out why in a safer scenario with an instructor rather than in the middle of the A40 in rush hour!

My problems with my MP3 300 were not major but were worrying. The parking brake would need adjusting every 1500 miles otherwise it would not work. The bush between the exhaust pipe and the downpipe from the engine failed every 1800 miles and Piaggio said this was normal wear and tear hence not covered by the warranty - despite the failures happening at 8 and 16 weeks old. Piaggio told the dealer that the MP3 is not designed to be used at 70mph on a frequent basis. I spoke to another MP3 owner while waiting for one of these repairs and he had a drive belt fail at 4000 miles - again refused as a warranty claim.

At just under 6 months I sold it and bought the Honda (as I say, an automatic that I think can be ridden on an A2 license) - no problems at all in 2500. From my experience I could not recommend the MP3 as a reliable commuting bike, the time and cost of keeping it on the road are too high.

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.

[Wanderer]

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

But what happens in 3 years time when you come to sell the bike? Let's say you sell it for £3,000 (inc VAT), you will have to pay £500 VAT to HMRC and £500 CT (20% of the £2,500 ex VAT selling price), is that correct?

If so, it's still a gain of £1000 and you get to reclaim tax on the purchase of safety equipment (some may be VAT zero rated so no VAT to reclaim?) and running costs.

Or does the bike quietly disappear from the balance sheet and then get into a few bumps and scrapes so it's worth "nothing" after 3 years anyway?

[smalik]

Help with Insurance

Thank you Nigel - I will run this past my Accountant.

I'm assuming you've not ridden a bike before as you mention the riding it on your car licence - whatever you do go and do your bike training as it will give you lots of information about staying alive! Bikes are not like cars and it's better to find out why in a safer scenario with an instructor rather than in the middle of the A40 in rush hour!

My problems with my MP3 300 were not major but were worrying. The parking brake would need adjusting every 1500 miles otherwise it would not work. The bush between the exhaust pipe and the downpipe from the engine failed every 1800 miles and Piaggio said this was normal wear and tear hence not covered by the warranty - despite the failures happening at 8 and 16 weeks old. Piaggio told the dealer that the MP3 is not designed to be used at 70mph on a frequent basis. I spoke to another MP3 owner while waiting for one of these repairs and he had a drive belt fail at 4000 miles - again refused as a warranty claim.

At just under 6 months I sold it and bought the Honda (as I say, an automatic that I think can be ridden on an A2 license) - no problems at all in 2500. From my experience I could not recommend the MP3 as a reliable commuting bike, the time and cost of keeping it on the road are too high.

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.

[bluetoaster]

I am planning to buy the MP3 500 LT this Saturday.

Please no.

As a former bike instructor I implore you to get a bike license and understand how to ride a bike safely. You can do that and purchase a reliable mid size commuter for less than the price of a new MP3 500 LT. It isn't about bike control, it is about roadcraft and defensive riding, which you can't get from driving a car.

I've never tried a 3 wheel scooter but a quick look at my local Suzuki dealers website shows brand new SV650S can be had for under £5K. They also have a 2009 Nonda NTV700 for the same price, and a 2007 SV650S with less than 6000 miles for just £2,899. These are solid workhorse bikes that would be ideal for commuting.

I have in the past bought an old Bandit 600 from ebay for a few hundred quid and then commuted on that for the next couple of years.

[nigelspencer]

Going to be a long term workhorse

Hi Wanderer,

having given up on the farce we call public transport I'll be using the Honda for a long time to come so don't envisage the company selling it. Should it come to it I can buy the bike from the company at fair market value, the company pays the taxes as you say, all is fine with the world.Who know's what the tax treatment will be next year let alone 3 years time!

[nigelspencer]

2 votes for Tuition

remember - you never see old pizza delivery boys.......

[northernladuk]

remember - you never see old pizza delivery boys.......

and another from me. Completely different driving style, awareness and road rules needed. Horrible things.

[Wanderer]

Yes to what they all said. Definitely go on a motorbike training course, motorcyclists see the roads very very differently to the way car drivers do.

Just because you don't legally need a motorcycle license doesn't mean you aren't going to be exposed to the same risks and hazards that bikers have to deal with.