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I am sorting out my tax return and looking at claiming mileage for visiting / inspecting my let property - one house quite far away - that I let out whilst working full time PAYE.
On HMRC site it says -
You can’t use the mileage rate method to calculate motoring expenses for your rental business.
- but I had thought that was exactly what you did if it weren't a business but one property let. But it doesn't differentiate any different anywhere else on the site that I can find.
I would appreciate any thoughts? Thanks in advance.
agreed its ridiculous. but it is changing apparently:
Thanks for posting that link "Joe".
It would be interesting to see how that turns out and when it will be implemented assuming it does go through. It would certainly make my life a lot easier.
According to the HMRC you are a business, are not orr a business or maybe a business depending on your activity - all at the same time. Different parts of the law use different definitions of "business".. For the part you quote i suspect it doesn't matter and you can't use mileage rate anyway.
I had one BTL property and have then bought a second. Can I claim mileage whilst looking for the second property as an expense allowance on my tax return?Thanks
Hi Wanda,My understanding is that you cannot use the 45p mileage rate (despite the fact that this is exactly what it was designed for!) to charge for "business mileage" for a property business as a landlord, but you can as a Ltd company.
The remedy is to calculate you annual motoring costs as below:
Total miles 216/17 tax year 12,000
Road tax £200
Insurance £500Total £4,200Then you apportion: E.G. 35% of your mileage was on exclusively on property related travel. You can put £1,470 (35% of £4,200) in your tax return as a part of your "expenses"sectionPaul
Thanks for your reply and for how to calculate the mileage. HMRC technician said I couldn't claim mileage whilst looking for another property but only the mileage used to inspect, repair etc. I thought I'd read somewhere that you could claim mileage to expand your property portfolio once you have one property but tbh it's so confusing with different info available!!
Thanks again and I will certainly use your calculation tool.
Sorry I have only just seen your reply. I am not convinced that the HMRC tech is correct. This is from the HMRC site:
Other common types of expenses you can deduct if you pay for them yourself are:
Expenses you can’t claim a deduction for include:
If you are renting out properties, and acquiring new ones then you have Research costs finding them, these will include travel, phone calls post etc.
Frankly, when you put expenses in to your return, as long as they are reasonable, it is unlikely that HMRC will ever inspect you. Do not be tempted to inflate your overall motoring costs, and apply a fair percentage of business use (I keep a weekly log of mileage in a note book). I can produce bills for servicing/Maintenance and petrol, and my and prove total mileage. My notebook justifies the % of business mileage I apply.