Am I right in thinking than as a general rule of thumb if you do a lot of business miles it is more advantageous to claim the business mileage rate currently 45p a mile, rather than claiming the capital allowance?
provided that one doesn't go over the 45p per mile for the first 10k and 25p per mile thereafter there's no benefit in kind for the limited company option.
If the business is not limited then there is restriction as to the availability of the 45p/25p per mile option if one changes their vehicle after breaching the VAT registration threshold (see BIM47701).
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
The original post asked about claiming capital allowances - if you're thinking about claiming capital allowances, then sole trader or ltd co is a factor, as a ltd co would also create a BIK (the OP does infer strongly that it is a car, not a van, so almost inevitable that a BIK would arise for a ltd co).
I am, of course, assuming that the OP is talking about someone in business who is deciding whether to claim ppm or actual costs.
