That just isn't true. A bike must be used solely for business to be able to claim vat back. Mcn ran an article about how easy this all was a few years back which alerted Hmrc to how many people were using this ruse. From April the rules on filing Vat returns change which means HMRC will soon see every transaction in every Vat return. https://www.gov.uk/reclaim-vat/cars
How many times have you heard guys say that they can't buy a modern bike because they'll kill themselves, perhaps this guy was one of those born again bikers. If the last bike you rode was an old slow bad handling pig, this would feel like a jet plane. He probably scared himself to death.
I've been running bikes as my company vehicle for a long, long time - as long as I pay my BIK against my personal allowance (which I do), private mileage is fine. My accountant did raise an eyebrow about claiming track days as 'safety training' though…
You can run a bike through your company, that isn't the argument but I would question whether it's as tax efficient as many think if is done correctly.
It’s been pretty efficient, largely because of the VAT reclaim and write down as Plant & Equipment. However, next FY I’ll be taking it off the company as I’m switching to an electric car, which is MUCH more tax efficient - I somehow don’t think HMRC would be ever so impressed at me running a bike and a car on’t company.
And there is the issue as you shouldn't be reclaiming the VAT under HMRC rules if there is any element of private use. If you sit down and work the figures out then the BIK as a higher rate tax payer may actually mean its costing you money.
