Riding Your Motorcycle Home on a Business Tax Saving

by

melaverty

You will be happy to know that the treatment of your motorbike, within your business affairs, for tax purposes is much more favourable than your motor counterparts and whilst owning a company car is an expensive business, owning a company motorcycle isnt. Javeed Baig of Gower Accountants in Leicester explains why.

Assuming you are VAT registered, you can claim upto 100% of the VAT paid on the purchase of your beloved bike. This is on the basis that you use the motorcycle only for business purposes. With a car, no matter how much you use it for business you cannot reclaim the VAT. Motorcycle Tax Benefits Having purchased your motorcycle, you can claim a deduction against tax for the full purchase price in your year of purchase using part of your Annual Investment Allowance of 50,000. A car typically would attract an annual writing down allowance of only 20% per year. In corporation tax terms, for the small business, this represents a saving of 21%. Assuming the VAT reclaim and the corporation tax relief thats a whopping 36% off the purchase price of your motorbike. So you could choose to take the saving, or maybe trade up and get that mean machine that you have always promised yourself. As with a car it is unlikely that you will use your motorcycle only for business and therefore a private use element will occur. Take the assumption that 75% is used for business and 25% is used privately. This 25% is the benefit you have derived from using a company asset and as a result a Benefit in Kind charge will arise on both the company and on you as an individual. How this benefit is calculated is where the magic lies and its where motorcycles ownership thrives and company cars dive. The basic differences are as follows: Motorbike Car Base Value Market Value or Purchase Price List Price When New % for Cash Value Fixed 20% Between 10% & 35% Fuel Benefit Fixed 20% of Usage Base 14,400 fixed Heres an example of the potential tax benefits: Motorcycle costs 8,000. 25% private & 75% business. Cash Value of benefit in kind : 1,600 Reduction Due to Business Usage : 1,200 Taxable Benefit : 400 400 represents your cash value of the benefit from using the company bike. If you are a basic rate taxpayer you will pay 80. The company will pay a further 51.20 National Insurance on this. The equivalent tax position regarding a company car is as follows: Car Cost 8,000 List price 16,000. Some private use assumed. CO2 = 20% Cash Value of benefit in Kind : 3,200 Reduction due to Business Usage : N/A Taxable Benefit : 3,200 Tax At Basic Rate : 640 Company Charge : 410 Moving back to motorcycles you can see the savings on purchase would far exceed the annual cost of owning your bike through a company. Additional Tax Benefits In addition all safety equipment, insurance and fuel can all be paid for by the company with the Benefit in kind calculated in much the same way. The article has been written for information purposes only and does not constitute formal advice. The rates are those prevailing at the time of writing and are subject to change.

If you have a business and require specific assistance regarding tax savings for limited companies or for any other accounting matter, then please contact Gower Leicester Accountants on 01162 206019 or visit our website www.accountantsleicester.net

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Riding Your Motorcycle Home on a Business Tax Saving

By Karen Simpson

I was just like anybody else who is young and who got less to be always startled whenever people display gold jewelries embossed with glittering stones. I my childhood I thought that those really cost a fortune. I look at them with real envy that I could hardly take my eyes off them in amazement. Little did I know there are still better possessions than gold earrings, bracelets, necklaces, bangles and even rings.

These are valued possessions, no doubt, and owning jewelries means having invested in something of real value. I was not aware then that my grandmothers gold coins and those small golden cubes are more valuable than those that glitter with diamond stones.

Wonder why I said this? I came to know that her antique gold coins and small bars of gold which she kept and always checked while I watched since time I can hardly remember are more precious than her dangling earrings and necklaces. That was when my grandfather got sick and needed so much money to pay for the doctors, medicines and hospital bills.

We entered a store offering the highest cash for gold to sell some of her gold possessions. She brought along her small box laden with pieces of jewelries she had acquired and kept for so long. I saw the big mans reaction as he looked and examined the items handed to him by my grandma. I heard him asked her as to the source of the gold coins which he said were very rare and cost so much because they are collectors items and demand therefore is very high. Antique dealers and enthusiasts are eager to buy such valuable coins, for a price! At my young age then, grandmas gesture lingered in my heart that I grew up to believe that to save a loved ones life one must sell gold.

Now I realize that one should be very careful when selling their gold and other jewelries. Selling gold should be done with care as some people may take advantage of the other persons need. One must be aware of what he owns and the current market price when selling them to at least get the best in exchange for his valued treasures.

There are traders who buy gold and they differ in evaluation and appraisal methods so a person must be very careful. He should select buyers who would really consider the craftsmanship and the uniqueness of the item being sold. The owner should know the value of what he owns and should know how much it should be worth that he can be sure he wont be taken advantage of by the other party.

One should also know where he can get the best value for his gold and the store that offers the highest price for gold so that he will not feel so much of his loss.

Now, at my age, I still look at those sparkling gems hanging on the ears, arms and fingers of prominent ladies. I know fully well that gold is more valuable when sold to save loved ones life.

About the Author: Karen Simpson is an expert on precious metals and personal finance. She has been helping people

sell gold

and valuable items for many years. More about

cash for gold

.

Source:

isnare.com

Permanent Link:

isnare.com/?aid=837822&ca=Finances

byAlma Abell

There was a time when energy costs in Hawaii were higher than many other areas of the country, but solar energy has changed that picture. Several years ago residents began to harness the sun’s power to create renewable energy, and today it is very common to see a Solar Photovoltaic System in Hawaii, as more residents choose eco-friendly, affordable solutions.

Solar Solutions Are Economical

When solar energy was first introduced it was often too expensive for the average homeowner. However, as technology advanced and providers became more efficient, equipment and installation costs have gone down and now it is typical for a new home to include a Solar Photovoltaic System in Hawaii. Experts such as The Sonshine Solar Corp can provide equipment that allows homeowners to harness the sun’s power to produce all of their home’s electric. They offer solar hot water heaters, too. It has been estimated that customers reduce utility bills up to 50% with natural energy. They reduce water heating costs by up to 90%. Installation of renewable energy equipment entitles customers to State and Federal Tax credits. Their savings and rebates make conversion cheap enough to pay for new equipment in a fairly short time.

Solar Solutions Help Save the Earth

When fossil fuels like oil are used to create energy, they generate tons of pollution every year. Energy professionals estimate that an average home consisting of four people emits about eight tons of carbon dioxide per year. That is almost twice what their car produces. However, the renewable energy created from the sun helps keep the air clean and fresh and conserves natural resources.

Solar Solutions Are Reliable

Now that many companies have had years of experience perfecting solar equipment, providers can offer reliable products that last a lifetime. Technicians are now experienced with the latest technology and can offer clients a variety of money-and-earth-saving energy options. Many Hawaiian solar experts have become respected members of their communities and residents now rely on them for quality solutions.

Solar energy is popular in Hawaii because it helps save the environment while saving customers money. In addition installers can now offer customers a variety of solar solutions and provide quality equipment at affordable prices.