Company bike

[Hiram King Of Tyre]

Many Thanks, so it may be worth my while then

I wrote to HMRC about this. They replied saying the following:

>The 20% BIK is the actual cost of the bike to the company (Inc VAT)
>Servicing, tyres, insurance, protective clothing etc is added in to the above for that year
>BIK is offset by the ratio of Business V Private mileage (I didn't think this was right but I have a letter from HMRC stating it)
VAT is re-claimable by the company if charged

[Rialto99]

Thanks for the tips.....not really worth it then

no not really!

[aceboy]

The benefit on a motorbike is on the market value of the asset when first provided, so 20% of £2000 in this case.

The "list price" is only for cars, vans (and I think, mobile phones.)

See paragraph 6.7 in http://www.hmrc.gov.uk/guidance/480.pdf

Many Thanks, so it may be worth my while then

[EvilWeevil]

The benefit on a motorbike is on the market value of the asset when first provided, so 20% of £2000 in this case.

The "list price" is only for cars, vans (and I think, mobile phones.)

See paragraph 6.7 in http://www.hmrc.gov.uk/guidance/480.pdf

I stand corrected.

[Archangel]

Yes.

And the BIK is still on the list price of £5200.

The benefit on a motorbike is on the market value of the asset when first provided, so 20% of £2000 in this case.

The "list price" is only for cars, vans (and I think, mobile phones.)

See paragraph 6.7 in http://www.hmrc.gov.uk/guidance/480.pdf

[aceboy]

Thanks for the tips.....not really worth it then

[Sockpuppet]

Yes.

And the BIK is still on the list price of £5200.

Correct.

So the BIK is £1040.

Also I think you pay BIK on anything provided for it. So you also pay BIK on fuel unless you repay the comapny and I think BIK on any leathers.

[aceboy]

Blimey.....perhaps it isn't so good. So basically my company buys an asset for 2k but I get taxed as though it is 5200?

[EvilWeevil]

the bike is a second had one, when new in 2002 it was 5200, the current market value is about 2k

Yes.

And the BIK is still on the list price of £5200.

[aceboy]

The BIK is on the bikes list price not current price. So £2k seems a little low.

the bike is a second had one, when new in 2002 it was 5200, the current market value is about 2k

[daviejones]

We had a company bike...but she left some time ago!!! it's a shame, as I really miss the fun we used to have in the comms room on the 5th floor

[Sockpuppet]

The BIK is on the bikes list price not current price. So £2k seems a little low.

[aceboy]

Hi All

I am just starting to think about moving away from using my motorbike as a personal vehicle and transferring it into the company, this is being drive by rising fuel costs and the fact that 24p per mile is no longer that good.

So here are the figures:

Bike Value = £2000
BIK = 20% of value per annum = £400
Annual depreciation 25%
Service costs (inc tyres) £350 per annum
Miles = 8800
Insurance = £200

Now as a personal vehicle I can claim £2112. but the fuel works out to roughly £1000

Is is worth transferring this into the company. I can legitimately claim safety equipment (leathers, helmet...etc) as well