In a recent, little known change in the Finance Act Motorcycles were included in your Tax-Deductable expenses.
For Self Employed riders buying a bike’ solely for business use’ can deduct the full amount of its cost from their tax profits. This is done by claiming it as an annual investment on their tax return.
John Shaw of the Bentleys firm of Chartered Accountants told ‘Motorcycle Trader, ‘Motorcycles are no longer treated for tax purposes like cars, but as plant and equipment. This has a significant affect on the amount of tax relief you can claim when you buy a motorcycle for use in your business. whatever the CO2 emission, 100% of the cost is potentially available as a tax write-off in the year of purchase’.
Good news indeed and can surely encourage more people to use motorcycles for work. With fuel costs rising, bikes are cheaper to run, often cheaper to insure and definitely cheaper to tax. So this potential tax ‘handout’ has got to be good for the industry.