A Landlord mileage claim is a flat rate amount that an individuals can claim for travel to/from their rental property.
Landlord Mileage Claim Rates
The landlord mileage claim rules were bought in from 6 April 2017. A landlord is entitled to claim a flat rate for each mile travelled in their personal vehicle. Here are the HMRC approved mileage rates that landlords must use for their claim:
| 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
A landlord has a rental property 10 miles away. During the tax year 2017/2018 (6 April 2017 to 5 April 2018) the landlord travels there 5 times in their own car. The landlord has driven a total of 100 miles to the property property and back. The landlord mileage claim against taxes is £45 (£100 x 45p).
Record Keeping For Your Landlord Mileage Claim
Unless you are using an automated bookkeeping system the simplest way to record your landlord mileage claim is with a spreadsheet. 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
There are very strict rules that HMRC have set out in relation to landlord mileage claims. 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 claim capital allowances and running costs for a car you can’t claim the landlord mileage claim. Transition rules exist if you want to switch though;
- Your landlord mileage claim is from your home, office or wherever you base yourself to manage your rental properties;
- If you use a managing or letting agent to look after your property then it’s unlikely you can claim landlord mileage. The managing agent address would likely be the business base;
- You can only claim landlord mileage when you exclusively travel to your rental property. This means only when you go from home to the property and don’t make any private stops on the way, unless very minor. If you happen to pick up your newspaper while you are out at the property then your trip is still business. But you can’t combine your visit with a trip to the supermarket for example. These trips fall under the HMRC rules on claiming part expenses;
- You cannot claim for mileage when 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 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. Such trips are 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.
