Hello ! I am jumping around in topics, I hope I will not get thrown out.
I am using my motorbike as a courier business use ,
If I may I would like to ask :
1. Mileage 45 p per mile or less as it is a motorbike? (For motorbikes is it the same 45 p per mile or is it less ?)
or
2. insurance and other costs associated with the bike being used for business purposes and % of fuel costs ?
If I buy a second hand motorbike costing £ 1700 may I claim Annual Investment Allowance and also the expenses relating to the bike for that tax year / mileage claim ?
Or is it the AIA and than I am not allowed to claim nothing else.
Have a lovely evening and thank you very much for your help.
Adrian
-- Edited by Adrian99 on Thursday 4th of July 2013 12:42:06 AM
__________________
This is just my personal opinion. Advice should be sought from a suitably qualified Accountant.
P.S. I only ride a motorbike because I want to dry my clothes faster
Are we talking about putting £25 per week into the car in petrol? In which case I think that you are misunderstanding mileage payments.
The mileage is not a payment for petrol it is a payment by the business to hire the car from you worked out at 45p for the for 10k and 25p per mile thereafter.
The 45p is limited as that additional 20p part is deemed to cover stand alone costs such as insurance and tax which of course do not increase the more miles that you do.
There is a deemed petrol element to the calculation but that is only necessary for where VAT is being reclaimed against mileage by a company.
HTH,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
motor bikes are treated differently to cars. I'll try and structure my answer to follow the flow of your question.
Mileage is 24p per mile no matter how many miles that you do (only 4p more than having no engine in the bike!).
If you claim mileage then you are claiming compensation from the business for use of your own vehicle. The only motoring associated expenses that may be claimed on top of mileage are parking charges (not fines) and tolls (and both only when on business).
The alternative is running the bike through the business which includes all costs.
AIA would be available as motorbikes are plant, so do not suffer the AIA restriction of cars (this has not always been the case and may change again in the future).
If you purchase the bike through the business then all associated costs (fueld, tax, insurance, maintenance, etc.) are allowable expenses of the business.
Note however that there are AIA restrictions dependant upon who you buy from as AIA is not available for purchases from related parties (which of course includes yourself).
also if you run the vehicle through the business and there is a private use element then there is an associated taxable benefit.
With cars it tends to be cut and dried that people are generally better off claiming the mileage but with a motorbike there are other matters such as AIA availability and lower mileage to factor into the equation so you really need to sit down and do your sums for both scenarios to work out which is better for you.
HTH,
Shaun.
p.s. edited for a gramatical error
-- Edited by Shamus on Thursday 4th of July 2013 09:51:17 AM
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I am back,
So, the motorbike that I have now is on my own name but I also work as self employed and I use my own name, so I am confused.
I want to buy another motorbike (as the one I have right now it has many miles and the service expense is very high) and I want to claim the right expenses and AIA if possible.
After reading your answer I would like to ask you if these are the two scenarios that can be considered.
1. claim 24 p per mile
and claim AIA at full cost of the new motorbike I want to buy (it will cost around £ 1700, and it is second hand bike, one year old )
2. claim fuel, service, insurance and take off 30 % of these expenses for private use
and claim AIA at full cost of the new motorbike
Many thanks,
Adrian
__________________
This is just my personal opinion. Advice should be sought from a suitably qualified Accountant.
P.S. I only ride a motorbike because I want to dry my clothes faster
I am back, So, the motorbike that I have now is on my own name but I also work as self employed and I use my own name, so I am confused. I want to buy another motorbike (as the one I have right now it has many miles and the service expense is very high) and I want to claim the right expenses and AIA if possible. After reading your answer I would like to ask you if these are the two scenarios that can be considered.
1. claim 24 p per mile and claim AIA at full cost of the new motorbike I want to buy (it will cost around £ 1700, and it is second hand bike, one year old )
No, its mileage OR capital allowances, not both.
2. claim fuel, service, insurance and take off 30 % of these expenses for private use and claim AIA at full cost of the new motorbike
Yes... ish
AIA will be reduced by 30% due to the private use element so on £1700 you would claim £1190and the remaining £510 is not available for future WDA due to the private use element.
Many thanks,
Adrian
Kind regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
After doing the maths, second option is way better.
Silly question, but I just want to make sure: Capital allowances are claimed against trading profit ?
Thank you
Have a lovely day.
Adrian
__________________
This is just my personal opinion. Advice should be sought from a suitably qualified Accountant.
P.S. I only ride a motorbike because I want to dry my clothes faster
