Riding Your Motorcycle Home On A Business Tax Saving

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:

MotorbikeCar
Base ValueMarket Value or Purchase PriceList Price When New
% for Cash ValueFixed 20%Between 10% & 35%
Fuel BenefitFixed 20% of UsageBase 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.

Is It Better To Buy Or Lease Commercial Space For My Business

Your business location should be tailor-made to fit with your company budget, spacing requirements and ease of operation. For some business owners, leasing affords a sense of freedom and relieves the financial burden of a down payment, yet may be too restrictive for some kinds of operations. The decision to buy a piece of commercial property offers its own set of risks and rewards, and should be considered carefully before entering into a mortgage contract.

Leasing Commercial Space

1. Cost Effective

Leasing a commercial space will usually require a one to two month move-in deposit, making the rental space a cost efficient way to do business. New business owners may be strapped for cash, and by leasing, rather than purchasing, your storefront or office is cost effective to set up shop with minimal funding.

2. Flexibility

Leasing a commercial space gives the entrepreneur plenty of room to grow, downsize or change locations. Although once you sign a lease, you are locked into a fixed amount of time to make the lease payments, the terms may be only a matter of months to be released and start over in another location.

3. Freedom

Setting up shop without the burden of a mortgage to pay allows a sense of financial freedom. Albeit, a purchased piece of commercial property could be leased or sold to another, there could be months before the owner receives any income from the property. A hefty mortgage may also interfere with business profits and may demand downsizing of personnel.

4. Maintenance

A leased office or shop has a landlord to lean on, taking away tedious responsibilities with the plumbing, electricity and security. In a leasing situation, any repairs or legal liabilities are left in the hands of the building management team.

5. Subletting

In some situations, you may sublet your leased office space to another. However, this must be cleared in writing from the management office, and careful attention given to their rules and regulations for renting out the space.

Buying Commercial Space

1. Secured Location

Buying a piece of commercial property adds assurance that the space is secured and cannot be given to someone else. In a leasing situation, when the lease expires, the renewal process may not have the same initial terms, thus proving unfavorable to renew. However, when you purchase, your prime location is secured.

2. Equity

As with a residential piece of property, a commercial owner may take out cash against the mortgage. In an emergency financial crisis, having a mortgage to borrow from lends a sense of security and provision of funds. Most commercial purchases will require 20 to 25 percent down on the purchase price, giving instant equity to the business owner.

3. Remodeling

When you have bought a property, it is your to do with as you wish. Remolding, expansion and reconfiguration are yours for the taking. The ownership allows the business structure to be molded around the enterprise for a perfect fit and usage of space.

4. Tax Deductions

The interest on a commercial loan is tax deductible, with allowances for deducting any depreciation.

5. Lease Your Excess Space

If you own the property, you may lease your excess space without any restrictions from a third party over your head.

The Benefits Of Having A Mobile Business

Some people like working nine to five, leaving the house at the same time every morning, and arriving home at the same time each evening. They enjoy this routine because it’s stable. However, it’s hard to take vacations with this type of job, as you have to schedule time off. It’s also hard to run errands or make appointments when their working hours are the same as yours. Basically, there’s not a lot of freedom in this type of job. If you had a mobile business on the other hand, you’d be able to go anywhere you want, do anything you want to do, and more.

All you need to run a mobile business is your laptop and an internet connection. As long as you have internet access, you can conduct business anywhere, anytime. You could go work down by the beach. You could take a vacation on the fly, and you could even move on the fly if you wanted to. With a mobile business, you’re never tied down, and can earn income wherever you choose to go.

There are various types of mobile businesses. E-commerce websites where you sell services or products online, advertising / marketing jobs, writing jobs and much more. As long as you keep on top of your orders, and ensure your clients are satisfied (and this is of paramount importance, especially with online business where you don’t meet the customer face-to-face), you can run a successful business from wherever you may find yourself.

Mobile businesses are becoming increasingly popular. People like the idea of mobile business because they can travel and pretty much do what they please, according to their own schedule. In addition, these types of businesses are also great for single parents. It’s hard for a single parent to go to work each day, pay for day care, and all the other worries that come with raising a child on your own. With a mobile business, the stay at home mum or dad can work away at their online business and watch over their own child at the same time.

If you don’t like the daily grind, 9-5 structured job, and you’d like more freedom in your life, you should consider a mobile business. Find out what you like to do, and research the type of business you would like to run. As long as you have a laptop, an internet connection and a passion for your job, you can be as successful as you want to be, and you won’t be tied down like you would be with a regular job.

The Concession Trailer Business

Either yow will discover concession locations yourself, or possible employ a advisor to search out concession trailer locations for you. Nevertheless it really should not be hard to find a site, you must always consider that you need a good traffic flow from the spot. You could choose a parking lot of another business or maybe a annual event location for concession. When you finally stumble on your site you may talk it over with the proprietor of the property and learn more about it and whether or not it works for you. Once you have checked multiple locations it is advisable to improve at discussing the function of your organization and the way it will help the business you’ll be placed out of. It is very important tell the owner of the property that your concession trailer won’t interfere with the deals of their business but add on to the present income.

It is possible to locate innovative ways to locate concession locations, whether youre paying the location proprietor a bonus, fee, or simply paying out a monthly rent. It will not harm to even partner with a commercial land owner for your concession business.

The business of starting a top notch concession trailer business is critical. Lots of individuals fail to see them as the most hygienic industry so you will need to change their outlooks on this. In the event you give an incredible first impression then it is more possible they will come back to your location and give good input to other people. This is very important as it creates a word of mouth business that may prove far more effective than paid advertisements. The concession trailer business is no unlike than any other business and should be addressed as such. You must show your prospects distinctiveness together with your food that will bring them back to your concession stand again and yet again.

The ideal place for the concession trailer will exhibit your position and give a personal touch to it. It doesn’t hurt to possess outside seating and shading for it so that your consumers can relax with their cooking. Aim to be individual with your visitors as they’ll feel welcome and want to visit with you rather than your competition.

So you do not need to just accept any concession setting. You need to craft educated judgements before jumping into any prospect. Aim to make a listing of all the benefits of every spot you discover and weigh the pros and cons of all.

If you have a already made a business card then you could hand these out at prospective concession trailer locations and expect the interested ones to contact you. Although the best process in my opinion is personally encounters. This way you can talk you strategy out with them and converse how it’ll help their company. You should always make this your selling point since it will be one of many top reasons why any company landlord would enable you to locate in their lot.

Once you have originate the right location for your concession trailer then it is time to scout out more areas. By this point you ought to be good at finding and finding first-class prospects for the concession business. You must have the right flow of traffic at your current spot and be identifiable being a concession trailer business.

Now that you are identified on your concession business will probably be simpler to drag in additional areas. Beginning as an nameless may are less tempting for some commercial property owners but that is now in the past.

A first-class concession trailer sale tactic is building your repute as a quality food concession entrepreneur. After this is ended then it the opportunities will come flooding your way. Now all that is left is building your buyer foundation and keeping them there to your top notch concession food.

Keeping your potential customers coming back to your concession trailer time after time will probably be undemanding once you have revealed your niche. You need to different yourself from the rest of the crowd. Your mobile and others are not, so that is already in the benefit. Discover the distinctiveness that brings them back again and for a second time. Whether this is with the food that you’re serving or the ribbons that are scattered over your concession trailer. The choice is yours and yours alone.

It is all about display, and that may stand for countless things.

Your concession personnel and prospects is usually a great supply of dreams. It doesn’t hurt to consider advice from anyone that’s willing to provide it to you. It is simply up to you to get what works for you then run with it with your concession business.

As you test out new features you could ask your customers for opinions and even offer free concession food for their trouble. This is an incentive for their time and they will greatly appreciate it and that in it could benefit you. The concession trailer business is a lucrative one and can show great profits for the entrepreneur that is prepared. Check with us often and with our concession resources for more information on how to succeed.

Whats The Business Value Of Soa Show It With Kpis

Whats the Business Value of SOA? Show It with KPIs

If youre in IT, youre being asked to add more business value than ever. In fact, todays CIOs are being asked to become drivers of the business while at the same time many are trying to replace old and inflexible infrastructures with modern and flexible ones, according to InformationWeeks Analytics 2009 Global CIO Survey. This report adds that across the globe CIOs are fighting the stubborn perception that IT in generaland CIOs and their teams in particularare cost centers rather than creators of value and accelerators of innovation. Does this sound familiar? Whether you already have an SOA in placeor youre just getting started with SOAit is essential to prove business benefits.

Today, measuring cost and revenue impact as well as other SOA metrics is vital to any leading organization. Measuring the value and tracking changes to these metrics are critical as your SOA grows and its portfolio expands. Recent surveys from Forrester Research show organizations are increasingly implementing SOA as a business enabler. Furthermore, recent Gartner research concluded that:

More than 60% of organizations said their SOA projects had a positive impact on their organizations ability to grow revenue; and

SOA projects generated positive returnstypically within 10 months
A proven way to demonstrate an SOAs business value is through Key Performance Indicators (KPIs). KPIs use a language your business colleagues understand: metrics. They give you the means to measure a return on your SOA investment and directly link SOA projects to real business improvements:

What KPIs you can use to start measuring SOA results

How leading organizationsAvnet, Coca-Cola Enterprises and France Telecommeasure how SOA contributes to business success

How Software AG can help you analyze and deliver on your SOA-based KPIs

Software AG, provides a complete solution for SOA Governance, CentraSite, that enables customers to manage their IT assets and measure their business value.

If youre looking for an introduction to SOA, please read our book, SOA Adoption for Dummies.