In a nutshell, you can save a few thousand pounds on the purchase of your electric motorcycle if you purchase it through your own limited company. As always, there are a few caveats but I thought it might be worth starting a topic. First though, a couple of questions:
Do any of you run your own limited company?
Is there an appetite for information and discussion on this subject?
If anyone is interested, I'll go into a few of the details. The headlines are as follows:
You can reclaim the VAT
You can still claim the subsidy for an electric motorcycle.
The taxman treats motorcycles in the same way as power tools, or plant and machinery. Therefore you can claim a capital allowance for the bike and reduce your liability for Corporation Tax.
All servicing, insurance and running costs will be paid by your company, thus reducing your tax liability further and saving you money. The same goes for accessories and riding gear.
The area I'm not too clear about is how much effort you have to go to in order to make the taxman happy you are just using it for business and not pleasure. Is a note in your accounts stating you use it to visit clients sufficient? Micro enterprises are not required to be audited, so I think you wouldn't be expected to provide any evidence to support your claim that you are riding solely for business. Difficult do anyway really...
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Topic: UK Tax Benefits for Directors of Limited Companies (Read 244 times)