Why Your Company Should Consider Electric Motorcycles: Tax Benefits and Cost Savings

In today’s rapidly evolving transportation landscape, electric motorcycles are emerging as a viable option for companies looking to reduce their carbon footprint and enhance operational efficiency. While the primary focus often lies on electric cars, electric motorcycles offer unique benefits that can make them a worthy consideration for businesses. Here, we delve into the financial advantages, tax implications, and overall value proposition of investing in electric motorcycles for your company.

Financial Advantages of Electric Motorcycles

  1. Corporation Tax Relief: One of the most compelling reasons to invest in electric motorcycles is the corporation tax relief available. Companies can claim full corporation tax relief on the cost of purchasing the bike in the accounting period of purchase. This immediate deduction can significantly reduce the taxable profit, providing substantial savings for the business.
  2. Running Cost Deductions: Beyond the initial purchase, companies can also deduct the running costs of the electric motorcycle each year. This includes expenses such as maintenance, insurance, and electricity for charging. These deductions help lower the operational costs, making electric motorcycles an economically sound choice in the long run.

Tax Implications for Employees

While the benefits for companies are clear, it’s important to consider the tax implications for employees who use these bikes for personal purposes. The taxable benefit for the employee is calculated as 20% of the market value of the bike plus the costs of ‘fuel’ (electricity). Depending on their income level, employees will pay tax at rates of 20%, 40%, or 45% on this benefit.

For example, if an electric motorcycle has a market value of £10,000 and annual charging costs are £500, the taxable benefit would be 20% of £10,500, equating to £2,100. An employee in the 20% tax bracket would pay £420 per year in tax, whereas those in the 40% and 45% brackets would pay £840 and £945, respectively.

Employer Tax Charges

In addition to the personal tax implications for employees, employers are subject to a tax charge of 13.8% on the calculated taxable benefit. This additional cost should be factored into the overall financial assessment when considering the provision of electric motorcycles to employees.

Comparing Electric Motorcycles to Electric Cars

While electric motorcycles offer notable benefits, it’s important to compare them with electric cars to make an informed decision. Electric cars typically attract lower taxable benefits, making them more tax-efficient for both employees and employers. However, electric motorcycles can still be a smart choice for businesses looking to diversify their vehicle fleet, particularly for urban deliveries, quick commutes, and reducing parking costs.

Conclusion

Investing in electric motorcycles can provide significant financial benefits for companies through corporation tax relief and running cost deductions. However, it’s crucial to weigh these advantages against the tax implications for employees and the additional tax charges for employers. By carefully considering these factors, businesses can make an informed decision that aligns with their financial and environmental goals.

Electric motorcycles represent a forward-thinking investment that not only supports sustainability but also offers potential cost savings. As the market for electric vehicles continues to grow, staying informed about the latest developments and incentives will help your company stay ahead of the curve.


Frequently Asked Questions (FAQ)

What tax relief is available for companies purchasing electric motorcycles?

Companies can claim full corporation tax relief on the cost of purchasing the electric motorcycle in the accounting period of purchase. Additionally, running costs can be deducted each year.

How is the taxable benefit for employees calculated?

The taxable benefit is calculated as 20% of the market value of the bike plus the costs of ‘fuel’ (electricity). Employees pay tax on this benefit according to their income tax bracket.

What are the tax rates employees must pay on the benefit of using an electric motorcycle?

Employees will pay tax at rates of 20%, 40%, or 45% on the taxable benefit, depending on their income level.

Do employers have to pay additional taxes on providing electric motorcycles to employees?

Yes, employers must pay a tax charge of 13.8% on the calculated taxable benefit.

Are electric motorcycles more tax-efficient than electric cars?

Electric cars typically have lower taxable benefits, making them more tax-efficient. However, electric motorcycles still offer significant benefits and can be a smart choice for certain business needs.


Ready to explore the benefits of electric motorcycles for your business? Visit our Electric Motorbikes page to learn more and find the perfect model for your company’s needs. Embrace sustainability and efficiency today!

Who are English Electric Motor Co?

Established in 2017 from the multi award-winning Old Empire Motorcycles, English Electric Motor Co. (EEMC) has developed a 5 star reputation for offering award-winning machines and providing exceptional service. The EEMC team have prepped, serviced and sold almost 1000 electric motorcycles to the UK, franchising the business into the southern hemisphere with Australian Electric Motor Co.

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12 month £99
10 year / 100,000 mile limit
 
What is included under EEMC Assist?
Breakdown at the roadside
The appointed agent will provide roadside assistance throughout the UK, 24 hours a day, every day of the year if your bike is stranded on the highway as a result of a breakdown. The aim is to fix your bike, but if it
cannot be fixed at the roadside within a reasonable time, it will be taken to the nearest Dealer.
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If it is not possible to fix your bike at the roadside or arrange a prompt local repair, you and your bike can be transported to a UK mainland destination of your choice up to a maximum of 75 miles.

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EEMC Assure

6 months £299
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The battery protection covers you for the first 6-months from the purchase date of the Motorcycle. The Maximum claim limit will be £500 on batteries up to 4kW, £1,000 on batteries from 4kW to 10kW and £2,000 on batteries from 10kW to 15kW max. In the event of a claim, any replacement battery should carry a minimum of a 12-month guarantee. All mechanical and electrical Components of the Motorcycle are also covered, where they were supplied as part of the manufacturer’s original specification, other than the excluded components listed in T&C’s.

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Being an exclusively electric dealer within the UK we have found ourselves receiving enquiries through the entirety of the country and currently have many of our customers based as far north as the highlands and as far south as Poole. Very quickly we decided it was important to offer a comprehensive, reliable and reasonable nationwide delivery and mobile service to enable the sale of any of our brands within our range to anywhere within the country.
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Nationwide UK Delivery

Our home delivery service means that you can purchase your brand new electric motorcycle and have it delivered directly to your door. We deliver anywhere in the mainland UK for £199 incl VAT using our premium motorcycle couriers who liaise directly with our customers to work around your timings. All our couriers are fully insured and guaranteed delivery.
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EEMC Ltd T/A English Electric Motor Co is also authorised and regulated by the Financial Conduct Authority (Ref No 782562) for consumer credit purposes. We are a broker for finance and not a lender. Please be aware lenders may pay us a commission for introducing you to them. This commission can be based on the amount you borrow or the vehicle you purchase. Different lenders may pay different commissions for such introductions. Any commission amounts lenders pay will not affect the amount that you pay under your finance agreement, all of which are set by the lender.
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Supercharged Servicing

Being an exclusively electric dealer within the UK we have found ourselves receiving enquiries through the entirety of the country and currently have many of our customers based as far north as the highlands and as far south as Poole.

Very quickly we decided it was important to offer a comprehensive, reliable and reasonable nationwide delivery and mobile service to enable the sale of any of our brands within our range to anywhere within the country.

Inductive Insurance

Although electric motorcycles and scooter insurance is a relatively new, small but growing market we are glad to say that to insure any of our electric motorcycles will not cost any more than an equivalently priced and powered combustion models.

We’ve scouted high and low to find the best possible insurance for electric motorcycles and electric scooters and turns out the best guys in the electric insurance industry happened to be based just down the road from us!

Hi-Voltage Finance

New technology is not truly effective if the systems that back it are outdated. Along with our travelling demo days and pop up showrooms we are offering a comprehensive mobile servicing system for electric motorbikes, meaning less cost and downtime for you whilst the minimal service needs your electric motorcycle has are met. Service costings and frequency vary for each brand and model but a general service undertaken at our workshop can be as little as £60 ex VAT.

Delivery and Demos

New technology is not truly effective if the systems that back it are outdated. Along with our travelling demo days and pop up showrooms we are offering a comprehensive mobile servicing system for electric motorbikes, meaning less cost and downtime for you whilst the minimal service needs your electric motorcycle has are met. Service costings and frequency vary for each brand and model but a general service undertaken at our workshop can be as little as £60 ex VAT.

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Range given is an estimate based on real world riding based upon EEMC experience.
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