Maintenance, insurance and storage: the deductible costs of a business motorcycle
Buying the motorcycle is one moment. Living with it is a thousand small ones: a service here, an insurance premium there, fuel, a clean dry place to keep it. The good news for an entrepreneur is that those running costs are not just lower than a car, they are also largely deductible.
A note up front: this article is general information, not tax advice. Deductibility depends on your situation. Always confirm with your own accountant or tax adviser.
What counts as a running cost
The everyday costs of keeping a motorcycle on the road fall into a few clear buckets: maintenance and repairs, insurance, storage, fuel and consumables like tyres and oil. When the motorcycle is used for business, these costs are generally deductible for the business portion, the same way other business expenses are. Each receipt you keep is part of that picture.
Lower than a car to begin with
Before deductibility even enters the conversation, a motorcycle is simply cheaper to run. Servicing is less involved, insurance premiums are typically lower, tyres and consumables cost less, and storage takes a corner instead of a garage. We put the per-kilometre numbers side by side in what a motorcycle costs per kilometer. The deduction is the cherry on a cake that was already cheaper.
Business and private, split fairly
If you ride both for work and privately, you deduct the business share. A reasonable split, backed by your records, keeps it clean, and a simple trip log makes the split easy to defend. We cover the practical side in records and trip logging for a business motorcycle.
A note on storage
Storage is worth a thought. A motorcycle barely needs space, which keeps the cost low, but how you treat that cost depends on your situation and legal form, a subject we touch on in the business motorcycle: sole trader, BV or freelancer. A dedicated, business storage spot is cleaner to account for than a corner at home.
The bigger picture
Deductible running costs are the steady, year-after-year part of the case. Combined with no benefit-in-kind, low road tax and reclaimable VAT, they make the whole thing add up, which is the story of the complete guide to riding a custom motorcycle through your business. Run your numbers on the business riding page.
Reminder: general information, not tax advice. Deductibility depends on your situation. Always confirm with your own accountant or tax adviser.
Frequently asked questions
Which running costs of my motorcycle are deductible?+
Maintenance, repairs, insurance, storage, fuel and consumables linked to business use are generally deductible for the business portion. Keep the invoices and keep it business-like and reasonable. This is general information, not tax advice.
Are the costs lower than a car?+
Almost always. A motorcycle is cheaper in maintenance, insurance and consumption than a comparable car, and storage is more compact. The difference adds up significantly each year, separate from deductibility.
What about mixed use?+
With both business and private use, you deduct the business portion using a reasonable split, supported by your records. A simple trip log helps. Confirm the method with your accountant.
Does storage at home count too?+
That depends on your situation and legal form. A separate, business storage location is clearer than a spot at home. Whether and how you can claim storage is best discussed with your adviser.