Business Finance & Lease FAQs

Q – Who can purchase a motorcycle/scooter with a business finance
A – PLC’s, limited companies, partnerships and sole traders

Q – When did HMRC rules change taking motorcycles and scooters
out from being classified as ‘Cars’ and put them in the same category
as photocopiers?
A – HMRC rules changed in 2009 taking Motorcycles and Scooters out
of the ‘Cars Category’ and putting them in the same category as
disposable assets which have no value at the end, ie photocopiers

Q – What are the benefits of a Business Finance Lease?
A – Business Finance Lease has all the benefits of leasing:
Low initial payment(usually only 1 month in advance)
VAT spread over the whole agreement
Payments treated as rentals for tax purposes
Client automatically owns motorcycle or scooter at end of business
finance lease period, benefiting from the value that motorcycle or
scooter has.

Q – Are payments and VAT 100% tax deductible?
A – Yes

Q – How many years can I take business finance over?
A – Up to 5 years with no large residuals or end of lease balloon

Q – Can extra payments be made?
A – Yes extra payments can be at any time and are fully tax deductible
in the same tax year

Q – What is the lowest amount and highest amount covered by Business Finance?
A – £1500 to £75000(larger amounts available subject to status)

Q – Which motorcycles/scooters can be purchased using a business
finance lease?
A – All new, used and classic motorcycles/scooters (VAT is charged on
used machine payments if the machine is not VAT qualifying.
Alternatively business finance can be used)

Q – Can Accessories, helmets, clothing, maintenance, signwriting,
wrapping etc be included in the monthly lease price?
A – Yes

Q – Are there any mileage restrictions?
A – No

Q – Does the client keep the motorcycle/scooter at the end of the
lease/finance period?
A – Yes

Q – Is a business finance lease affected by the personal finance
affordability requirements (taking into account personal credit ie
mortgages, car, credit cards etc)?
A – No