Budget changes benefit bikers
Published: 01:52PM BST 24 Jun 2010
A self-employed rider buying their bike for business can deduct 100% of its cost from their taxable profits. This opportunity is only available to those who pay 40% tax.
Bikers who use their machine for business can do the same with the percentage deductible dependant on the amount of business the bike is used for.
This will mean a substantial offset against the cost of a new bike which will be available each year. For those that only occasionally use their motorcycle for business they can claim a percentage of its cost as a capital allowance, and the percentage will be determined by how much business use the bike is used for.
These changes, initially highlighted by the Get On campaign, can mean substantial savings on the cost of a new bike. It has estimated you could save £2,728 on a new Honda CBF1000, which costs £6,821.
Solicitor Lucy Thomas said: "Thousands of tax payers don't realise they can claim capital allowances on business expenses such as a new bike. They're paying more tax than they need to and you could be, too."
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