Oggy

Long shot. Has anyone got experience of Running a "company Motorcycle" (same circumstance as the more common "company Car") for personal and business use?

I am interested in the ins and outs in terms of HMRC benefit in kind (BIK) and Employer's P11d National Insurance, plus any downsides people have experienced. Accountants can only advise on the numbers, but not of the experience.
My situation is I have my own limited/VAT registered company so have lots of options to consider and interested if anyone else has done this before.

<feel free to PM me if it discusses your tax circumstances past or present - especially if you are called Ken Livingston . Discussions can be in confidence>.

Nadeem

Tony not sure of all the ins & outs, however a few years ago, I ran my own vat registered company and my accountant told me it was best to put the bike through the business as bikes are classed in the same way as vans, etc and not a benefit in kind. Plus you can claim the VAT back.

Roboduck

Nadeem is right in reference to the BIK aspect but be careful when it comes to the insurance side implications, the insurance companies don't like it but Good Luck, it would be interesting to know the outcome.
Cheers

Oggy

Thanks Warren.
The insurance may be a show stopper if they are not flexible like with cars.

For the bike, as an Individual they happily provide 'Class 1 Business Use' for me to potter about to client sites (with a strict list of exclusions e.g 'courrier and food delivery' etc.).
With cars i can insure fully-comp if you are not the legal or registered owner, with a declaration that it is not doubled up by the owner (do this with our car in my wife's name but me insuring it as policyholder and main driver).

accountant coming back to me and then if he's happy I'll chat with the insurance broker about the scenario.

Nadeem

I didn't have any issues with insurance - in fact as I recall it was 30% or so cheaper as it was through the company.

Oggy

Ah, Nadeem is a wise one.
What I am paying as an annual premium now, I had to earn way more first, then give hMRC their PAYE percentage, then some Employees'' NI and also some 'Employers' NI. A bit of corporation tax on what is left behind. What is left over in my pocket goes toward the insurance premium.

Nadeem

So what's the upshot then Tony, is the new bike being polished up ready for delivery....

Oggy

Maybe, we will see how today goes. I eventually found insurers.

Today is visit to 2nd dealer. (they had a 6month old 75mile example-but unfortunately the vat has already been reclaimed).
New price is Slightly cheaper than Vines, but visiting them to appraise the Pan European (I vow to uphold one bike in, one out philosophy).

I have 3 options:

1. If trade in Price today is better I may be into ex to make an order this week.

2. If trade in price is no better than the one I have I will get the Pan's Paintwork sorted and wait for a suitable good weather week then let aBay decide on its value. (currently monitoring around 3,750-4,000 less their commission). Once sold, do a 'tendering' process to pit at least 5-10 dealers against each other, for the supply of a new bike.

3. Easiest option is "Do nothing" and keep riding the Pan European and revisit the idea some other time.

Will tell you the outcome tonight.

Oggy

Deal done. Collect on Saturday 19th

Grantovski

Well done Oggy! So go on what you bought??