Did you know that motorcycles now qualify for a possible 100% tax write off if you use one in your business?
The tax status of your Harley or preferred model changed in April 2009. We asked John Shaw from local accountants Bentleys to fill in the detail for us.
 “From April 2009 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.
 
Company cars are now limited to a 20% or 10% annual tax write down unless they have a carbon footprint below 110g/km, in which case you may qualify for a 100% allowance. The same criteria no longer apply to motorcycles; whatever their CO2 emission, 100% of the cost is potentially available as a tax write off in the year of purchase.”
 
For bikers in business this has to be good news, especially if you are self employed and a higher rate tax payer.  Bentleys continued:
 
“The change in tax status does seem to open up tax planning opportunities to business owners who can justify the use of a motorcycle in their business. If you could write off the cost of a £10,000 machine and you were a 40% tax payer, you would possibly carve £4,000 off your tax bill.”
 
As with all tax planning the devil is in the detail. Bentleys would be pleased to offer you an opinion if you would like to take advantage of the opportunity this recent change in tax law allows. Contact John Shaw on 01204 388675 or visit www.bentleys-accountants.co.uk

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