Private Car Expenses

costofloving

I am in full time employment but also have a portfolio of rental properties. I finance my own car which I use privately and to manage my properties. Is it possible to offset vehicle financing and running costs (loan, tax, insurance, servicing, fuel) as expenses against property income and if so in what proportion and how do I declare these costs?

Hasbeen

costofloving wrote: »

I am in full time employment but also have a portfolio of rental properties. I finance my own car which I use privately and to manage my properties. Is it possible to offset vehicle financing and running costs (loan, tax, insurance, servicing, fuel) as expenses against property income and if so in what proportion and how do I declare these costs?

Think you can only claim 45p per mile to travel to your rental?

Why do you not look at the HMRC website that gives you all details that you can claim for?

costofloving

The HMRC website is not clear to me hence the post. UK Property notes say capital allowances are allowable but nothing about aportioning the costs of financing a venicle and aportioning use between private and "business". It seems more clear if I am considered self-employed but I don't believe I fit that category.

Sibbers123

Your rental property business is not a 'self-employment'. It is taxed as property income (and thus no national insurance is due on it).

The vast majority of your car journeys will not be for the property business, especially if you use it to commute to work every day. Therefore, common practice in your situation would be to keep a mileage log of the journey's to and from the rental properties and other journeys that relate to property business can claim tax relief for 45p per mile (25p for miles in excess of 10,000) and ignore what you actually pay. Unless you have a massive portfolio or have properties if different parts of the country, i would suspect there to be minimal motor expenses.

If you went down the route of actual costs, you certainly would have to make a private use adjustment. HMRC won't let you claim tax relief for the whole amount for obvious reasons...

jimmo

costofloving wrote: »

The HMRC website is not clear to me hence the post. UK Property notes say capital allowances are allowable but nothing about aportioning the costs of financing a venicle and aportioning use between private and "business". It seems more clear if I am considered self-employed but I don't believe I fit that category.

In which case follow the guidance you have already seen
The rules for property letting generally follow the trading income rules. There are some exceptions but they are not relevant here.
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim1103

A bit of additional info:
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2220