Benefit-in-kind on a business motorcycle: why there is none
If you have ever run a company car, you know the feeling. The car is useful, but every month a slice of benefit-in-kind is added to your taxable income, and at the end of the year it stings. So here is the line that surprises almost every entrepreneur who asks us: a motorcycle through the business has no benefit-in-kind addition at all.
Important: this article is general information, not tax advice. Rules and amounts change and your situation is unique. Always confirm with your own accountant or tax adviser.
What benefit-in-kind actually is
Benefit-in-kind, or bijtelling in Dutch, is the tax you pay for the private use of a vehicle that belongs to your business. With a company car, a percentage of the catalogue value is added to your income every year, and you pay income tax over that amount. It is the reason a company car often feels more expensive than it looks on paper.
On a motorcycle, that addition does not exist
A motorcycle plays by different rules. In the Netherlands there is no benefit-in-kind addition for the private use of a business motorcycle. None over the catalogue value, none as a fixed percentage. The line on your tax return that makes the company car expensive simply is not there for a motorcycle.
That single fact changes the whole calculation, and it is the backbone of why so many entrepreneurs put a motorcycle on the books.
So can you ride it privately, freely?
This is where nuance matters. No benefit-in-kind does not mean every cost is automatically deductible. The normal rule still applies: business costs must be genuinely business. If you use the motorcycle heavily for private trips, part of the costs may be treated as private rather than deductible. Keeping clean records, and a simple trip log if you want to be thorough, keeps everything clean and defensible. We cover the practical side in records and trip logging for a business motorcycle.
What it saves, in plain terms
Picture two business owners. One drives a company car and pays benefit-in-kind on its value every year. The other rides a motorcycle and pays zero benefit-in-kind. Before you even count fuel, road tax or insurance, the motorcycle rider is already ahead by the full benefit-in-kind amount. Add the lower running costs on top, and the yearly gap becomes a number worth noticing.
It applies to a custom build too
The absence of benefit-in-kind is not reserved for new factory motorcycles. It applies to motorcycles in general, including a hand-built custom. So you can have the tax advantage and a one-off machine with real character at the same time. What differs per situation is how you deduct costs and handle private use, not whether the benefit-in-kind exists.
The bigger picture
No benefit-in-kind is the headline, but it is one of several advantages that stack. For the full overview, including VAT, road tax and the marketing value of a distinctive build, read the complete guide to riding a custom motorcycle through your business. When you are ready to see the numbers for your own situation, the business riding page has a quick calculator and a no-obligation quote.
Reminder: general information, not tax advice. The treatment of costs and private use depends on your situation. Always confirm with your own accountant or tax adviser.
Frequently asked questions
Is there benefit-in-kind on a business motorcycle?+
No. Unlike a company car, a motorcycle in the Netherlands has no benefit-in-kind addition for private use. So you pay no annual addition over the catalogue value. This is general information and not tax advice.
What about private use of the motorcycle?+
There is no benefit-in-kind addition, but the normal rule still applies that business costs must be genuinely business. With significant private use, part of the costs may be treated as private. Clean records and a trip log help keep it clean. Discuss the approach with your accountant.
Does that save a lot compared to a car?+
Often a great deal. Where a car benefit-in-kind adds hundreds to thousands of euros to your income every year, for a motorcycle that figure is zero. Add the lower road tax, insurance and fuel costs, and the yearly difference is substantial.
Does this apply to every motorcycle?+
The absence of benefit-in-kind applies to motorcycles in general, whether a new machine or a custom build. What differs per situation is the deduction of costs and the treatment of private use. Get advice on that from your own accountant.