I have a client that has purchased a car, using money from the business account.
What would be the best from a taxation perspective (for the cc and the individual) - to
1) Register the car in the cc name and tax the individual for the fringe benefit of using the car
2) Register the car in the individual's name and then he gets a travel allowance for using his car for business purposes. The money used to purchase the car, will go to his loan account in this instance.
He pays for his fuel, oil and repairs and maintenance out of the business' account. I have allocated these expenses to his salary as a travel allowance. Is this correct?
Can he still receive a travel allowance if he is using the cc's car (if we follow point 2)?
Thanks in advance for your time and advice!