Company bike

[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

[Sockpuppet]

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

[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

[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

[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]

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?

[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]

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

[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

[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.