A change to the Finance Act buried deep in the pages of the March budget means that the self-employed can now “completely offset the purchase price of a new scooter or motorbike against their income for tax purposes”, says Miles Brignall in The Guardian.
Because motorcycles and scooters are no longer treated for tax purposes like cars, but as plant and equipment, 100% of the cost is potentially available as a tax write-off in the year of purchase, provided you bought your bike after 6 April 2009.
Owning a bike will particularly appeal to self-employed people who travel to clients in London, where two-wheeled transport escapes the £8-a-day congestion charge. High public transport costs, congestion and potential free parking are other good reasons to switch.
Get On, a campaign group to promote two-wheeled travel, says the change means higher-rate taxpayers could save £2,728 on the cost of a new £6,821 Honda CBF1000. A lower-rate taxpayer could buy a 50cc bike for £499 at scooter.co.uk, and effectively pay £400.