Travel and mileage expenses for landlords

Why it matters

Mileage is one of the most commonly under claimed landlord expenses, and also one of the most commonly challenged when the records are thin.

Legal requirements

• The expense must be incurred wholly and exclusively for the property business.
• Simplified mileage rates apply per business mile, with a lower rate above the annual threshold.
• Actual cost claims require apportionment between business and private use.
• You cannot mix mileage rates and actual costs for the same vehicle.

Common mistakes

• Claiming a round trip that also included personal shopping as fully business.
• Estimating annual mileage at the year end with no log.
• Claiming travel to a property you were viewing before you bought it, which is usually capital or not allowable.
• Switching between mileage and actual costs for the same car.

Practical guidance

• Keep a simple log with date, property, purpose and miles for every trip.
• Record parking and tolls separately, since they are claimable in addition to mileage.
• Note the reason for the visit, because purpose is what makes the trip allowable.
• Use your phone to capture the journey at the time rather than reconstructing it later.

Mileage or actual costs

Simplified mileage is easier and often generous for landlords with older cars and moderate distances. Actual costs can be better for high value vehicles with heavy business use, but you then need total running costs and a defensible business percentage, plus you cannot claim capital allowances on the same vehicle if mileage rates are used. Most landlords with a handful of properties are better off with mileage and a clean log.

Trips that get challenged

Journeys combining a property inspection with a family visit, long distance travel to a holiday area where a rental also happens to sit, and frequent visits with no recorded purpose all attract questions. The fix is not to avoid claiming but to record the business reason at the time. A one line note saying quarterly inspection at the flat with photographs attached is enough to make the claim unremarkable.