Buying a motocycle/scooter through the company

[northernladuk]

Try another dealer?

I don't think it is the dealer. I was looking in to a bike this last week due to a thread on them and other forums of transport and it is hellishly complex. Even my accountant asked if I was serious or just running the numbers. To be fair I was just enquiring so didn't ask him to take the time to do it.

It would have to be registered to the company so they would be on the V5 and the company would have to insure it. Looking on google researching it other people have also said they had problems insuring the bike. Some companies won't do it for companies under 10 people. I guess it is something to do with falling in to the same bracket as a courier or something like that. There is also the fact that a company bike would have to be insured for all employees. Yes we only have one but you can see how it gets risky for them with multiple being able to drive so if you did find someone it won't be cheap.

I think the dealer is quite correct. The bike is owned by the company so insuring it personally will not work. Not many car insurance companies will insure you for a vehicle you don't own and seems motorcycle insurance is more specialist it wouldn't be surprising if they are even more strict. I wonder if the dealer is protecting himself by making sure he has insurance in case the purchaser tries to bring it back under some consumer law or something. Can't do that if it's been pranged and not insured. Just guessing that bit but makes sense for the dealer to make sure it is properly insured.

[northernladuk]

I want to buy a scooter via Ltd to be able to expense it and claim back VAT

Not sure if it makes a difference but you want to expense it? Surely if you buy it via the company it becomes an asset not an expense? You will have to add VAT when you sell it and put the money back in the company on which it would get taxed etc etc?

[Sockpuppet]

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

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

[nigelspencer]

Just gone through the process

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.

[northernladuk]

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.

Surely this is wholly wrong. You personally are the only legally registered owner regardless of who paid for it. There is no evidence the company legally owns it at all. You alone are insured so it cannot be made available to other employees. It is a personally owned asset funded by the company?

Have you not effectively lent company money to yourself to buy a personal bike so are in trouble with any claims you make as it is a personal vehicle and haven't covered the fact you have made a company loan to yourself properly?

[nigelspencer]

V5 != Registered Owner

I checked all of this out with my Accountant and the Dealer before doing it. The V5 document does not identify you as the owner, just the registered keeper. The evidence that the company owns it is that the invoice from the Dealer lists the company not myself, the bike is listed as an asset of the company and it has been put through the accounts.

from 'askthepolice.co.uk'

A registration document (V5) is not proof of ownership. The registered keeper should be the person who is actually using / keeping the vehicle and this is not necessarily the owner of the vehicle or the person who is paying for it.

He is the person responsible for the vehicle so far as official communications from the police/DVLA etc., but the owner is the person who put up the cash (or was given it as a gift).

The DVLA make a point of saying that the person named on the registration document is not necessarily the owner.

This is particularly true with a company car which is owned by the company, however the registration document should show the registered keeper, i.e. the day to day user (this may be an employee who has it as a permanent perk with his/her job).

https://www.askthe.police.uk/content/Q743.htm

[amcdonald]

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

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

Some 4x4s are classed as vans for tax purposes

[northernladuk]

<stuff>

Very interesting thanks.

And how does the insurance work? You are insuring a vehicle that doesn't belong to you and you are personally insuring a company vehicle?

[Runs With Scissors]

Some 4x4s are classed as vans for tax purposes

My company bought a double cab pickup to carry around all that code I write......Classed as a van for tax purposes.

[nigelspencer]

Actually

The insurance is paid by the company and for me as the sole rider so no problems there.