Can Landlords Claim Car Leasing Costs?

Hi Paul

In theory at least, I think the answer is yes you can.

However, my accountant also gave me the same advice as you has done. I follow that advice, there are obviously good reasons for it.
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Hi Paul,

You can as long as you can say its wholly and exclusively for the use of your business. Even if it’s not then your accountant can apportion part of the costs say 75% for business / 25% personal. Or whatever proportion you wish. Saves keeping a mileage log…or making one up at year end!

What you cannot do is pay yourself for managing your own properties. Even if you have your own letting agency. But if you employed someone who is not on the Deeds to manage them for you then that is different.

Tax and property is a very complex subject and HMRC have a great big manual on it called the Property Income Manual. Its a really interesting read!!

Property is my full time occupation and it always amazes me how this industry is taxed so very differently from other businesses.

Luke I share your amazement. All this codswallop about it not being a business. Well to the people who come up with such rubbish try running a portfolio and then say it’s not a business. Case in point. I have my own letting agency. So I began to charge my rental properties what I charge other landlords. Oh no said HMRC. You can’t pay yourself to manage your own properties. What if I pay another agent then? Oh yes you can do that!
Okay Mr Taxman what if my letting business becomes limited and THEN charges my rentals?As it’s then a separate entity?

Mmmm-possibly said Mr Taxman with a harrumph…but if one of the Directors of the company owned the rental properties then you might not….

Confused…..well so am I !!

Paul,

My brother looked at this for his car.

Usually when one has a private car you can claim the first x (10,000) miles at about 45 pence a mile, then the rate drops to 18 pence a mile.

For a company car it’s only 18pence a mile or so.

so compare the first 10K
10,000 at 45 pence 4.5K
then next 10K 1.8K
on a business car both are 1.8K

the 45 pence a mile includes wear and tear on the car.
It does not cover big car differently to a motorbike as far as I am aware.

So yes if you own a Bentley or a Lamborghini you will be out of pocket.
But if you’d ride a scooter you could get one each year. And sell the old one and pay for alot of petrol.

Reply to the comment left by “James dengel” at “15/06/2015 – 14:25“:

Motor bikes: 24p/mile.
Push bikes: 20p/mile
cars: 45p/mile up to 10000 miles; 25p/mile on the rest.

Stick with your accountant’s advice, that’s why s/he is an accountant and you’re not. You’ll end up paying them for the amount you save as it will be much more complicated. You still have to log the mileage as you also use it privately to obtain a proportion to claim. Also if you get a tax review you’ll come very unstuck. People who do claim their vehicles probably have good reason, you mention a shop, much more likely to be business related.

Reply to the comment left by “Michael Barnes” at “19/06/2015 – 09:02“:

Plus 5p per mile for a passenger (if solely and wholly for the business).
Sorry for being a bit pedantic but it is another £500 a year on 10,000 miles. I could have been claiming it for years but have only just realised.

Reply to the comment left by “James dengel” at “15/06/2015 – 14:25“:

Would this only apply to a lease car or would it apply to a privately owned non financed ( or financed ) car !

Reply to the comment left by “Monty Bodkin” at “20/06/2015 – 08:24“:

Now how did I miss that?

Note that it is 5p/mile for EACH passenger: https://www.gov.uk/government/publications/rates-and-allowances-travel-mileage-and-fuel-allowances/travel-mileage-and-fuel-rates-and-allowances