Motorbikes have a clear tax advantage over company cars because they are classified as plant and machinery. This is better for both employers and employees.

Capital Allowances are restricted on cars based on CO2 emissions and employees also get taxed on the benefit in kind based on CO2.

Motorbikes being plant and machinery aren’t restricted and you could use the Annual Investment Allowance to offset the cost.

The Benefit In Kind is assessed  as 20% of the cost of the motorbike but there will also be a benefit in kind on fuel, repairs and insurance.

The company will also have to pay 13.8% Class 1A NI on the benefit in kind but that applies to most benefits including cars and motorbikes.

Would motorbikes be a viable option for your employees?

steve@bicknells.net