Claim allowance using car for BTL

Alan_M_2

dougk wrote:

Plus sour grapes I think.

A business is a business. The idea of a business is to make money. To make money you maximise income and minimise outgoings.

I think it is also fair to say that if BTL's and LL's are taxed more heavily that the costs of rental accomodation will rise so who gains there? My view is teh cost of renting is currently kept lower due to the number of BTL's and choice and availability. Less BTL properties = less choice, less availability and more demand. We also see what demand is doing to house prices so the same effect would happen to rental prices.

Are we now saying that builders and developers should not be allowed to make money out of building homes?

If you are running something not to make money you are a charity.

I think that could be a different conversation altogether comrade:rotfl:

stphnstevey

As well as the fuel, does anyone know if you can claim part of the cost of purchase of a car used for a BTL business?

Also, can you still make a claim, although your houses are held personally and not within a business (sole trader, partnership or LTD)

abaxas

stphnstevey wrote:

As well as the fuel, does anyone know if you can claim part of the cost of purchase of a car used for a BTL business?

Also, can you still make a claim, although your houses are held personally and not within a business (sole trader, partnership or LTD)

AGHAHGHA the last thing you want is a 'company car'.

However you may want a nice van / l200 .

silvercar

you can still claim if you are runnning the BTL business as an individual rather than a company.

tax on a company car would be expensie, much better to claim mileage rates.

stphnstevey

Thanks for this.

Would it then be classed as a 'company' car then, even if only part of it was used for BTL?

silvercar

personal car, mileage rates (as in Inland revenue tables) claimed as business expenses for your business mileage allowable as a business expense against tax. Exactly the same way that mortgage interest on your BTL is a business expense allowable against tax.

stphnstevey

I'm very sorry to labour the point and I very much appreciate your help so far. But I don't think I have got a straight answer to if I can claim as a business expense a proportion (equal to that which it is used for travel to and from my BTL's) of the cost of purchasing a car?

The fuel issue seems fairly straight forward. I do have a BTL 250 miles away and I am wondering if I can claim for the quarterly or so visits I go to see the tenants?

But obviously it seems claiming a proportion of the cost of purchasing a car would also be a fairly large sum which I am wondering if I can claim as a business expense? The fact I recieve a car allowance from my employer to do my day job which is unrelated to my BTL's, might be pushing it!

real1314

I think that claiming a proportion of your car purchase / running costs is a no-no (inae though), but you can just claim the mileage at 40p per mile for the first 10,000 miles and then at 25p per mile thereafter. This is to encourage the use of fuel efficient vehicles rather than gas-guzzlers.
It's also a lot simpler than trying to attribute cost of purchase/depreceation/fuel/servising/insurance/MOT/Tax etc.

Afaik you can claim this in addition to anything your employer pays you as long as the 2 businesses are completely separate.

hth

clutton_2

my accountant asks me to keep all petrol receipts, garage bills, car insurance receipts etc etc AND a mileage log, so that at the end of each financial year he can see which method of expenses calculation is the most tax efficient for me. He has never asked me what i paid for the car, so i assume that the 40p per mile allowance (used last year) includes depreciation - although i have never asked him this question specifically. However, he knows that i use this vehicle for pleasure as well as business, hence the need for a mileage log to differentiate pleasure trips from business. IF it were solely a business vehicle different critieria may apply. The Inland Revenue have an online booklet called "Taxation of Rents" which details all the expenses allowable against rental income.

I claim as many as i can, like any business - my expenses include stationery, advertising, repairs, mileage, mortgage interest, BTL insurances, CORGI certificiates, electrical inspections, NLA subscription, magazines, books, seminars, courses, subsistence, part power/light/heat for running an office from home, rail fares, taxis, parking, phone calls, software, legal fees (some), bank charges and capital expenditure. hope this helps

silvercar

AFAIK the mileage rates include an allowance for depreciation, servicing etc. that is why they are 40p per mile rather than about 12p. As an individuals personal tax on the benefit of having a company car is so high, it makes little sense for your BTL business to purchase the car. Using revenue mileage rates is the most cost effective way of claiming your car expenses.