Mileage rate and capital allowances
Could someone out there please confirm that my thinking is correct on this point? Where a self employed person claims 40p per (business) mile for use of vehicle, this is meant to cover ALL running and depreciation costs, so that one cannot ALSO claim capital allowances on the vehicle? A client of mine recently claimed to have been told by a Revenue official over the phone that he could claim the 40p AND a 25% wda on his vehicle, which I think is not correct.
I have always understood that you can only claim the wda if the alternative method for claiming motor expenses is used, viz, the business proportion of the actual running costs (RFL,insurance, fuel, repairs etc.)as measured by the business mileage travelled compared to total annual mileage. Also, one can only change from using one method to the other on a change of vehicle?
PLEASE somebody, tell me I'm not going mad here...!
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