Money tip #70 – How the self employed can now get up to 40% off the cost of a scooter or motorbike thanks to the taxman

1 min Read Published: 24 May 2010

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.

‘’Get On, a campaign group set up by motorbike and scooter manufacturers to promote two-wheeled travel, says it has identified a change to the Finance Act which means self-employed riders buying a bike solely for business use can deduct 100% of its cost from their taxable profits by claiming it as an annual investment on their tax return.

The group says the change in the law means those who pay 40% tax could save £2,728 on the cost of a new £6,821 Honda CBF1000. At the other end of the scale, commuters who only want a 50cc bike can find ones starting at £499 at Direct Bikes. By writing off the cost against tax, the bill is in effect reduced to £400 for a lower-rate taxpayer and £300 for a higher-rate one.

The move will particularly appeal to self-employed workers who want to buy a scooter or motorbike to travel to clients – particularly in London, where two-wheeled transport escapes the £8-a-day congestion charge.’’

Looking for a financial adviser near you?

Do you need financial advice? An independent financial adviser can show you how to make the most
of your money. Find your nearest qualified and regulated adviser using this VouchedFor search tool.