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Company Motor Bike

Trackday

Is there a schedule E benefit on a Company Motor Bike similar to those for company cars?

Would it be taxed under the "company asset for private use" provisions i.e. 20% p.a?

Could the Company reclaim the VAT on the purchase?
Simon

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VAT on Company Motor Bike
Having (presumably!) only two wheels, the bike is not covered by the input tax "block" applicable to motor vehicles - therefore input VAT is recoverable in accordance with normal principles i.e. to the extent that the use of the bike is referable to the making of taxable supplies in the course of a business.
If input tax is reclaimed in full, output tax will need to be accounted for on any subsequent private use. May be simpler to apportion the input tax in the first place to reflect the estimated business / private split.

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VAT/P11D
Excluding VAT?

I would very much like to know if you have had this treatment agreed, notwithstanding SP A7.

Do you distinguish (for P11D quantification purposes) between 'market value' as excluding VAT and 'cost to the employer' as including VAT irrespective of recoverability, or is this distinction irrelevant and you are simply advised differently from the Revenue's practice as set out in the SP?

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20% if P11Dable
Yes,to your 2nd option - if the employee/director is P11D'able s/he is taxed on the higher of 20% of mkt. value when made available, or the rental paid by the employer.

Alternatively, if owned by the person they can claim 24p pm for business mileage.

I think the company should be able to claim VAT - perhaps someone can confirm this.

Regards
Paul

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