Self Assessment - Business Mileage

dreamypuma

Hi Hoping for some advise / clarification if possible.

Our accountant files or Self Assessments and has done for the past few years. This is primarily for our rental properties.

I work full time and use a personal car for which I claim around 16p per mile. I have provided our accountant exacting details of all my mileage and claims, so as to allow him to claim tax relief against this on my self assessment.

The response I have from the Accountant, is as follows: 

"I have not taken the mileage as HMRC do not accept mileage as an expense against rental income"

Does this seem correct? Surely the Self Assessment is a declaration of all finances for the year and not just the rental income.

I would normally contact HMRC helpline for guidance, but they are shut till 4th September. Any guidance would be appreciated. 

DullGreyGuy

https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2220

pramsay13

Do you mean you use the vehicle in a different paye job and currently claim 16p a mile from your work? 
If so you are looking to claim tax relief on the mileage up to 45p a mile rather than add it as a business expense for the property. 

dreamypuma

DullGreyGuy said:

https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2220

Thanks I'll have a more detailed look after work.

My initial, thoughts seem to be that the mileage this refers to is in relation to expense incurred in the line of managing the properties. (for us this is a trivial amount)

The mileage that I need to claim relief against is incurred in the line of my full time employers works (separate to the property income and expenses).

I was under the impression that if someone is required to complete an Self Assessment, this needs to cover all other tax relief, in relation to all income, expense and employment. 

dreamypuma

pramsay13 said:

Do you mean you use the vehicle in a different paye job and currently claim 16p a mile from your work? 
If so you are looking to claim tax relief on the mileage up to 45p a mile rather than add it as a business expense for the property. 

Correct. Sorry I should have been clearer.

In the past I did this on a separate form, but believe that as I am now required to carry out a self-assessment, that this now need to be captured with that submission.

Dazed_and_C0nfused

dreamypuma said:

pramsay13 said:

Do you mean you use the vehicle in a different paye job and currently claim 16p a mile from your work? 
If so you are looking to claim tax relief on the mileage up to 45p a mile rather than add it as a business expense for the property. 

Correct. Sorry I should have been clearer.

In the past I did this on a separate form, but believe that as I am now required to carry out a self-assessment, that this now need to be captured with that submission.

Yes, a Self Assessment covers all income, expenses, relief etc for a particular tax year.

To be honest this sounds like a communication issue between you and your accountant.

"I have not taken the mileage as HMRC do not accept mileage as an expense against rental income"

Have you explained it properly to them 🤔

dreamypuma

Dazed_and_C0nfused said:

dreamypuma said:

pramsay13 said:

Do you mean you use the vehicle in a different paye job and currently claim 16p a mile from your work? 
If so you are looking to claim tax relief on the mileage up to 45p a mile rather than add it as a business expense for the property. 

Correct. Sorry I should have been clearer.

In the past I did this on a separate form, but believe that as I am now required to carry out a self-assessment, that this now need to be captured with that submission.

Yes, a Self Assessment covers all income, expenses, relief etc for a particular tax year.

To be honest this sounds like a communication issue between you and your accountant.

"I have not taken the mileage as HMRC do not accept mileage as an expense against rental income"

Have you explained it properly to them 🤔

Thanks for the observation. I'll pick this up and clarify with our accountant. The strange thing is that I provided the exact same summary of information, and instructions last year and this was captured.

Dazed_and_C0nfused

dreamypuma said:

Dazed_and_C0nfused said:

dreamypuma said:

pramsay13 said:

Do you mean you use the vehicle in a different paye job and currently claim 16p a mile from your work? 
If so you are looking to claim tax relief on the mileage up to 45p a mile rather than add it as a business expense for the property. 

Correct. Sorry I should have been clearer.

In the past I did this on a separate form, but believe that as I am now required to carry out a self-assessment, that this now need to be captured with that submission.

Yes, a Self Assessment covers all income, expenses, relief etc for a particular tax year.

To be honest this sounds like a communication issue between you and your accountant.

"I have not taken the mileage as HMRC do not accept mileage as an expense against rental income"

Have you explained it properly to them 🤔

Thanks for the observation. I'll pick this up and clarify with our accountant. The strange thing is that I provided the exact same summary of information, and instructions last year and this was captured.

On an employment page or Land & Property page?

dreamypuma

Dazed_and_C0nfused said:

dreamypuma said:

Dazed_and_C0nfused said:

dreamypuma said:

pramsay13 said:

Do you mean you use the vehicle in a different paye job and currently claim 16p a mile from your work? 
If so you are looking to claim tax relief on the mileage up to 45p a mile rather than add it as a business expense for the property. 

Correct. Sorry I should have been clearer.

In the past I did this on a separate form, but believe that as I am now required to carry out a self-assessment, that this now need to be captured with that submission.

Yes, a Self Assessment covers all income, expenses, relief etc for a particular tax year.

To be honest this sounds like a communication issue between you and your accountant.

"I have not taken the mileage as HMRC do not accept mileage as an expense against rental income"

Have you explained it properly to them 🤔

Thanks for the observation. I'll pick this up and clarify with our accountant. The strange thing is that I provided the exact same summary of information, and instructions last year and this was captured.

On an employment page or Land & Property page?

On employment, separately to my summary of income and expense.

Dazed_and_C0nfused

Maybe a new person has been doing your return then this year?

Jeremy535897

You can claim tax relief against your employment income for legitimate business mileage (which does not include normal commuting) at 45p a mile less the 16p you are paid, up to 10,000 miles a year (25p less 16p thereafter). You can claim travel from home to your rental property if you run your rental business from home. This is at the same rates (you don't get two lots at 45p though) and would be claimed against rental income.