Can Landlords Claim Car Leasing Costs?
I currently have a portfolio of 12 houses (which is increasing) and visit them every every 3 months.
I also manage each property and attend when tradesmen carry out any maintenance or checks.
My questions is whether or not I can put costs for the lease car I have against my business? I don’t use the car purely for business but I know of people that seem to be able to do this even if they are only driving to and from a shop they own.
My tax returns are dealt with by my accountant and he has suggested I claim mileage but surely there is more that I can claim?
I have a full time job in addition to managing the properties so I’d be interested to know what I can do with car leasing given my circumstances.
Thanks
Paul
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Member Since October 2013 - Comments: 248
10:03 AM, 27th June 2015, About 11 years ago
Has anyone considered the option of setting up a limited company for use as a managing agent? The company would NOT own the properties and NOT receive the rent. All it would do is charge a fee (10 – 15% of rental income) for the time spent managing the portfolio, plus expenses?
Not sure how HMRC would view this.
Member Since October 2013 - Comments: 248
10:07 AM, 27th June 2015, About 11 years ago
I meant a limited company to manage one’s own portfolio.
(For some reason edits to my previous post don’t update the original post.)
Member Since July 2013 - Comments: 1266 - Articles: 1
9:34 AM, 1st July 2015, About 11 years ago
The admin costs and regulations would not make it worth while to have a limited company. Also how often do you actually take a passenger? Just taking your family along does not constitute business travel.
Member Since March 2015 - Comments: 40
4:26 PM, 1st July 2015, About 11 years ago
Reply to the comment left by “Michael Barnes” at “20/06/2015 – 22:03“:
Ah I did not know that, when I used to go on my bike when travelling for Sainsbuy’s they would pay me the car rate, they knew full well i only have a motorbike.
Also 20P a mile for using a push bike. That is totally awesome.
Member Since March 2015 - Comments: 40
4:27 PM, 1st July 2015, About 11 years ago
Reply to the comment left by “Monty Bodkin” at “20/06/2015 – 08:24“:
That too is awesome as I own the property with my Brother we always both go to do work a the house (usually maintenance of the garden.)
an extra 5P a mile will be very useful.
Member Since June 2013 - Comments: 1121
8:32 PM, 1st July 2015, About 11 years ago
Reply to the comment left by “John Frith” at “27/06/2015 – 10:07“:
John if you are a Director of the Ltd Co and you own the properties HMRC take a dim view of it if you only manage your own properties. However you try and wheedle around it they will find the weak point. Trust me. I have tried. And as Puzzler says the accounting costs of a Ltd Co are at best £1000 per year. However if you manage other landlords properties then it becomes less clear and they concede that it “might be okay” (HMRCs own words…which means it is…and I have it on tape!)
Member Since July 2013 - Comments: 1266 - Articles: 1
9:13 PM, 1st July 2015, About 11 years ago
Even with a limited company your accountant will suggest using the mileage rate, it will have no effect. You won’t be able to claim any more. Any substantial private use make it pointless to try anything else.
Member Since July 2013 - Comments: 1434
3:07 PM, 2nd July 2015, About 11 years ago
Reply to the comment left by “James dengel” at “01/07/2015 – 16:26“:
Employers can pay what they like for mileage.
If it is above the HMRC rate, then tax and National Insurance are due on the excess;
if it is below HMRC rate, then employee can claim tax back for the difference.
Comments: 109
3:12 PM, 2nd July 2015, About 11 years ago
How about if you buy or lease a vehicle dedicated wholly and exclusively for the letting business? I believe a pick up or van with a 1 tonne payload is acceptable by HMRC and dead handy for carrying tools, paint, carting off all those manky old sofas and doors with punch holes in them etc.
There’s no depreciation calculations, you just expense the whole purchase cost in year one, and all running costs, fuel, insurance, repairs etc are valid business expenses.
I think this is why you see so many double cab pick ups, VW Transporter vans on the roads these days.
I’m not a tax expert, but it’s just an idea to maybe look into. DYOR.
Member Since June 2013 - Comments: 1121
5:10 PM, 2nd July 2015, About 11 years ago
Reply to the comment left by “Roanch 21” at “02/07/2015 – 15:12“:
The answers yes you can. I run a 4 x 4 for my own property maintainance business and a small Citroen C1 for my lettings. Accountant apportions these and a proportion for personal use.