Photo by Jan Starek on Unsplash | This is a subject I’ve not really written about but it occurred to me that the rules aren’t a strict as for cars powered by traditional fuels. When we’re being asked to travel alone, it is actually an option worth considering. Here's why... |
The purchase of the motor cycle attracts the 100% annual investment allowance as it is classed as ‘plant and machinery’. If the motorcycle is used 100% for business journeys then 100% of the VAT can be reclaimed but given that travel to and from work is not a business journey then this would exclude those journeys from a VAT reclaim and apportion it.
The taxable benefit is 20% of the cost including VAT per annum – so say the bike cost £4,000, then £800 would be classed as additional salary each year.