Landlord Travel Expenses: Mileage Claims

From 6 April 2017 landlords who pay tax on their properties as an individual are able to make a mileage claim at a flat rate based on the number of miles they drive.

Landlord Mileage Claim Rates

Here are the HMRC approved mileage rates that landlords must use to make their mileage claims:

Vehicle type Flat rate for the first 10,000 business miles in the tax year Flat rate for each business mile over 10,000 miles in the tax year
Cars and goods vehicles 45p per mile 25p per mile
Motorcycles 24p per mile 24p per mile

Example of a Landlord Mileage Claim

You have a rental property 10 miles away and throughout the tax year 2017/2018 (6 April 2017 to 5 April 2018) you travel to your rental property 5 times in your personal car. Therefore you have driven a total of 100 miles to your property and back, so your landlord mileage claim against your taxes is £45 (£100 x 45p).

Record Keeping For Your Mileage Claim

Filling out a mileage claim form for each property you own is most likely the simplest way for you to record your mileage claim so it is ready for your accountant at tax time.  You can download a template I have created below where you need to fill out property information and a brief description of your trip along with the mileage. Your mileage claim will be automatically calculated for you.  I recommend you update your spreadsheet every time you make a trip you wish to claim for so you don’t forget about it.

MILEAGE CLAIM FORM FOR LANDLORDS – Template (Excel)

HMRC Rules of the Landlord Mileage Claim

Before you begin making your landlord mileage claim there very strict rules that HMRC have set out that you should be aware of.  These include:

  • The 45p per mile is a per vehicle figure, the number of people in the vehicle doesn’t affect the rate;
  • The 45p per mile covers your vehicles wear and tear, general running costs, insurance and fuel – you can’t claim any extra costs above the landlord mileage claim.
  • If you already claim capital allowances and actual running costs you cannot claim for the landlord mileage claim (transition rules exist if you want to switch though).
  • Your landlord mileage claim is from your home or office, wherever you primary base yourself to manage your rental properties.
  • If you use a managing or letting agent to look after your property then it would be unlikely you can claim landlord mileage since the business base for your property would become the letting agents address.
  • You can on claim for landlord mileage where you exclusively travel to your rental property ie: you go from home to the property and don’t make any private stops on the way. If you happen to pick up your newspaper while you are out at the property then your trip is still business but you couldn’t combine your tip to your rental property with a trip to the supermarket for example. (These trips fall under the HMRC rules on claiming part expenses).
  • You cannot claim for any mileage where you combine your trip to a rental property which is a significant distance away with a personal trip. For example you live in London and have a rental property in Leeds, as well as having friends who live in Leeds.  If you choose to combine a trip to your rental property with a visit to your friends then your whole trip will be disallowed and you cannot make a landlord mileage claim (this is what HMRC call duality of purpose).
  • You must own your property as an individual not through a Limited Company.
  • You cannot claim for mileage before you owned your property.  Any mileage you claim is for managing and up keeping your rental property.
  • You can claim for Landlord mileage if you are going to pick up things you need for maintaining your property for example: picking up paint and dropping it at the property.
Anita is a Chartered Accountant, turned blogger and creator of the ever popular free Go Self Employed Email Mini Course, which has been completed by hundreds of attendees all over the UK. Using her 10 years experience in accounting, tax and operations for Small Businesses, Anita is on a mission to make finance simple for the self employed, so they can stop stressing about tax & finances and focus on building profitable businesses which will give them the lifestyle they dream of.