Tax on Motorcylces

[aceboy]

Hi there, please treat me gentle, as I am new to this.

I have read the post http://forums.contractoruk.com/accou...otorcycle.html with regard to taxation of Motorcycles, I have 2 scenarios, in both cases the following bits are the same:

Bike Value when purchased = £2,400
Annual Business Mileage = 7000
Annual Personal Mileage = 0
I am a lower tax rate payer


1) Keep the motorcycle privately owned and claim a daily mileage allowance (7000 miles * £0.24 = £1,680)
2) The company can purchase the motorcycle from me and run it as a company vehicle

Questions:

On Point 2, if the company purchases the bike is this treated as an expense?

On Point 2 Will the annual taxation calcs be:

Cost £2400
Benefit in kind at 20% £480

Tax Amount at 20% £96
NI Amount £61.44


Can I claim the following through the company as an expense?
a) fuel, servicing
b) Protective Clothing

How are these items taxed?

The Bike will be changed ever 3 years for another mondel that should not exceed £3,500





Finally, which is the best route, keep the bike private or transfer to the company.

Thanks in advance

[aceboy]

Oh yes, just a couple of other hypothical questions......

If I chose to use my own motorcycle, and claim the milage, why type of log do I need to keep.

How would the revenue know if I used my bike or my car, thus changing the amount I would claim.

[Hiram King Of Tyre]

I'm not an expert (That's why I asked the questions last week) but I would say:

1. Keep a record of all business mileage, that's how you know how much to claim from your business

2. Service records/MOTs etc

[aceboy]

Thanks. Again speaking hypothetically, are they really bothered if you put 7k miles but only did 6k?

[Crossroads]

Thanks. Again speaking hypothetically, are they really bothered if you put 7k miles but only did 6k?

Yes, they are bothered...but how would they know, as long as your records show 7k.

Of course, it's fraud, and if pushed the onus would be on you to prove that you did the 7k. Is it worth it for £240?

[Hiram King Of Tyre]

Make sure your service records & MOTs line up