Landlords - How to Claim Expenses When Using Your Car for Your Property Business!
8th February 2011
If you use your car for the purposes of your property business, you can claim an appropriate amount of the running costs as a business expense, but what can be claimed and how is a claim made?
Apportionment
You will need to apportion the cost of the car between business and private travel. Make a note of the recorded mileage at 5 April each year, which will give you your total mileage for the tax year, and keep a notebook in the car to record the mileage of any business trips. This will give you the proportion of the running costs you can claim. If your total miles for the year are 12,000, for example, and your business trips total 2,000 miles, you can claim 2/12 of your car costs.
What is Business Mileage?
In order to qualify as business travel, a journey must be "wholly and exclusively" for the purposes of your property business. If you combine a trip to the DIY store to collect materials for work on a property with a trip to the supermarket, that journey was not "wholly and exclusively" for your property business and none of the mileage can be claimed.
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