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This will give rise to a benefit in kind of £1,140 a year. The benefit is 20% of the gross cost of the motorbike - i.e. with VAT not net. For a basic rate taxpayer that's a tax liability of just £228 per year (higher rate taxpayer £456).

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  • If your company owns a business car, you may be required to pay tax on the fuel required. Again, how much tax you pay on the fuel will depend on the CO2 emissions and whether it is used for private or solely for business purposes. If your business car is only used for business purposes then you will need to be able to prove this to HMRC.

    Buying a bike through limited company hmrc

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    Buying a bike Your company can purchase a bicycle and claim tax relief on the full cost in the year of purchase. Yes, you heard it right, you can pay for a bike with the company card, and your accountant will classify it as a company asset. Better yet, kit out your bike with safety gear, and these will all be treated as part of the bicycle.