Can I claim?
It is possible to claim both capital expenditure and ongoing allowable expenses for the use of a motorbike but the entire costs will not be permissible until your vehicle is used solely for work purposes. For motorcyclists whose bike is used for both personal and professional use, a calculation is required to work out the commercial value upon which tax relief can be claimed.
As a self-employed professional, simply select "Car and other Vehicles" in your Expenses group. If you wish to claim a motorcycle purchase you can select "Purchase of Van or Lorry".
If you purchase a vehicle of any kind, including a motorbike, you could potentially claim tax relief on the cost. However, as tax relief is only available on business-related expenditure, if you plan on using your bike for personal use too, you will need to ascertain the split between the two purposes.
The other important distinction to make is that the motorbike (or other vehicle) must be used in order to generate the profits of your business; a commute to work is not considered business use for tax purposes.
To work out the value which can be claimed in tax relief you will need to understand how much of its usage is related to your business. One of the easiest ways to do that is to calculate how much of the mileage is business, and how much is personal. This will provide you with an approximate split which you can then apply to the purchase price.
The same principles apply to ongoing costs such as servicing, fuel and other vehicle-related expenditure.
Licence fees and other legal requirements can be included in the total cost of the vehicle for tax relief purposes, but costs such as parking tickets or speeding fines cannot be offset even if they were acquired whilst you were out on business.
An alternative to claiming tax relief by tracking the maintenance costs and calculating the cost of the purchase is to use the flat rate of mileage offered by HMRC. This means businesses don't have to keep up with the endless stream of receipts for costs and repairs and is designed to make the process much simpler for everyone.
Mileage allowance on SimpleTax
Self-employed "Car and other Vehicle" expenses under "Other".
(Remember that by opting for "mileage allowance" you can not declare any other vehicle-related expenditure)
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