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What Happens When Work Provides a Motorbike?
If your employer has provided you with a motorbike—whether for commuting, business trips, or both—you might wonder if there’s any tax to pay. The answer is yes, but not in the same way as with company cars. The rules for motorbikes are simpler, and the tax due depends on how long you had the bike and its value. This blog explains how the Benefit works out when tax applies and what happens if the motorbike is only available for part of the tax year.
Motorbikes Aren’t Treated Like Company Cars
One of the most important things to know is that motorbikes are not taxed under the usual company car rules. Instead, they’re treated as an asset provided by your employer.
This means the benefit-in-kind (BIK) is calculated based on a fixed percentage of the motorbike’s value—not on emissions or list price like with cars.
How the Tax Is Calculated
The annual taxable Benefit for a motorbike is calculated as 20% of its original market value, including VAT.
For example:
- Motorbike Value: £6,000 (including VAT)
- Annual Taxable Benefit: 20% of £6,000 = £1,200
You then pay income tax on this Benefit based on your personal tax band:
- Basic rate (20%) = £240 tax
- Higher rate (40%) = £480 tax
- Additional rate (45%) = £540 tax
The employer also pays Class 1A National Insurance on this Benefit.
What If You Only Had the Motorbike for Part of the Year?
If the motorbike was only made available to you for part of the year—say, six months—the taxable Benefit is reduced on a pro-rata basis.
So, using the example above:
- Annual Benefit: £1,200
- If used for 6 months: £1,200 × 6/12 = £600
- Basic rate tax on this: £600 × 20% = £120
The same logic applies no matter how long you had the motorbike—if it’s not the full year, you don’t pay the full benefit charge.
Can You Get a Reduction for Periods of Unavailability?
Yes. If there were periods during the year when the motorbike was not available—due to repairs or being returned to the employer—then those periods can reduce the taxable Benefit even further. This applies even if the employer still technically owned the bike.
To support any reduction in Benefit, you need to provide clear evidence, such as dates when the motorbike was off the road or returned,
What About Business Use?
If the motorbike was used exclusively for business purposes and for no personal use whatsoever, the Benefit may not apply. However, this is rare and difficult to prove. Even commuting is considered personal use.
To avoid a tax charge, there must be:
- No private use at all
- A clear policy prohibiting private use
- Evidence (like mileage logs) showing it was only used for work
Without this, HMRC will generally treat the motorbike as a benefit in kind.
What Should Your Employer Do?
Your employer must report the Benefit on your annual P11D form. This ensures that HMRC is aware of the motorbike and its value. You should also see this reflected in your tax account or PAYE tax code.
If your employer provides you with a motorbike, even just temporarily, it’s likely to be classed as a benefit in kind. But the good news is that it’s taxed at a flat rate and pro-rated if the Benefit only applies for part of the year. This makes it relatively straightforward to calculate, and the amounts involved are often modest compared to other perks like company cars.
Keep records of when the motorbike was available and how it was used, and make sure your employer files the correct paperwork. That way, you’ll stay compliant and avoid any unexpected tax bills later on.
Need Help Understanding Your Employment Benefits?
At Tax Accountant, we help employees and employers manage benefit-in-kind reporting, tax planning, and HMRC compliance. Whether you’ve been given a motorbike, car, or any other perk—get clarity and peace of mind. Contact us today for friendly, expert advice.