Mileage claimable for property managed by agent?

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    Mileage claimable for property managed by agent?

    I have a property that is a hundred miles from my home, and is managed by a local agent ( local to the rental property not my home). If the agent identifies some work that needs to be done and I do it, can I claim as part of the expenses travel from my home and back. I understand that if I was travelling to do something the agent should do, I could only claim from the agents address to the property and back, but as I'm doing genuine maintenance, can I claim for the full millage that I have actually travelled ?
    If so as the property is 50% in my name and 50% in my wife’s, should I split this between the two of us even if my wife did not come with me ?

    #2
    I'm afraid you can only claim from the agents office to the property and back. Regards Peter

    Comment


      #3
      I heard about this daft rule recently. I wonder if there is a definition of 'management'.

      The Revenue say that because the business is being run from the agent's premises, that is the place where mileage is measured from.

      What if the agent is only collecting the rent? Would that still apply?
      To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

      Comment


        #4
        Lets say the landlord lived in Australia, could he claim his air fair to come and paint the hall wall.?? Even if the LL did not have an agent do you think HMRC would accept the air fair as a reasonable charge. HMRC would consider the rental property as the LL place of business. Regards Peter

        Comment


          #5
          Originally posted by TaxationPete View Post
          Lets say the landlord lived in Australia, could he claim his air fair to come and paint the hall wall.?? Even if the LL did not have an agent do you think HMRC would accept the air fair as a reasonable charge. HMRC would consider the rental property as the LL place of business. Regards Peter
          That is completely irrelevant and ignores tax law. A deduction is due for any expense that is wholly and exclusively for the purposes of the lettings business; necessity or fairness are not written into the legislation. How far do you think it is "fair" to travel? 15 miles? 30 miles? 100? 148? Where is the cut off?

          Clearly coming from Australia to paint a hall wall AND visit Aunt Muriel is no longer "wholly and exclusively". But without that visit to Aunt Muriel just because it's "unfair" doesn't make any difference to the taxman. It's certainly practically unlikely a landlord would do such a trip without duality of purpose, but it is not impossible.

          An agent who only collects the rent is *potentially* not running your business, in which case your home could be the relevant location. But I suggest that as in almost all cases a direct debit would be easier and cheaper... it is unlikely that an agent *just* collects the rent. He is your agent, i.e. the person who acts for you, so the place of business is his office.

          Comment


            #6
            HMRC usually allows 40p per mile, I think, as a tax-free sum.
            JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
            1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
            2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
            3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
            4. *- Contact info: click on my name (blue-highlight link).

            Comment


              #7
              Originally posted by jeffrey View Post
              HMRC usually allows 40p per mile, I think, as a tax-free sum.
              But only form the place of business to the property in question. So often restricted to the mileage between the agent's office and the property.

              Comment


                #8
                This is where I see a conflict.
                I agree tax law is not about fairness, but my agent is not responsible for undetaking maintenance, just for informing me that it need to be done, or arranging it with another company. If my cleaner lived in the flat below it would not preclude me from claiming the millage as the cleaner has nothing to do with the maintenance work (unless she cleaned a little too aggressively), in exactly the same way my rental agent is nothing to do with undertaking the maintenance work.

                Comment


                  #9
                  Originally posted by Telometer View Post
                  But only form the place of business to the property in question. So often restricted to the mileage between the agent's office and the property.
                  Yes. My point was more about what's a reasonable figure than for which mileage it applies.
                  JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                  1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                  2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                  3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                  4. *- Contact info: click on my name (blue-highlight link).

                  Comment


                    #10
                    Originally posted by TaxationPete View Post
                    Lets say the landlord lived in Australia, could he claim his air fair to come and paint the hall wall.?? Even if the LL did not have an agent do you think HMRC would accept the air fair as a reasonable charge. HMRC would consider the rental property as the LL place of business. Regards Peter
                    I'm not suggesting a flight from Australia would be reasonable. However, say it was something like renewing a lock on a door?

                    If the agent calls a locksmith to do it, it will likely be somewhere north of £100 in total. Less 40% income tax is £60.

                    If I buy a lock at B&Q for £15, and drive 50 miles each way, & parking say £6:

                    However, perversely I can't claim the mileage at all so the cost is £45+(60% of £21)=£57.60

                    I spent all day away from home for £2.40!
                    To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

                    Comment


                      #11
                      PM2210 Deals with this. As you will come to appreciate the rental business is often not done from the LL home but from the let property itself. So no claim for mileage can be allowed. Regards Peter

                      Comment


                        #12
                        Originally posted by TaxationPete View Post
                        PM2210 Deals with this. As you will come to appreciate the rental business is often not done from the LL home but from the let property itself. So no claim for mileage can be allowed. Regards Peter
                        This is confusing. Either the rental business is conducted from the LL's home, or it is conducted from the letting agent's office. How can it be conducted 'from the let property itself' unless you are a resident LL, in which case you would not have to travel at all?

                        If you self-manage, i.e.do not use an agent, you can claim the cost of travel from your own home.
                        'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                        Comment


                          #13
                          Read PIM2210. Sorry Typo.

                          Regards Peter

                          Comment


                            #14
                            Taken from PIM 2210;

                            Use of a letting agent
                            Some landlords engage a letting agent to collect rents, organise services etc. Where a letting agent carries out all (or virtually all) the duties relating to the letting activity, it is likely that the rental business is being conducted through the agent. In such circumstances, the business 'base' is likely to be the agent's office, and travelling expenses from the taxpayer's home will not normally be allowable.
                            I use letting agents for some of my properties. My letting agents find the tenants and collect the rents. All (or virtually all) other duties relating to the letting activity are carried out by me. Therefore I claim the mileage when it is holy and solely (sic).

                            If you self manage entirely it seems straightforward that you can claim travel from home.

                            I have always done this (under advice from my accountant).

                            Has anyone actually had their claim disputed by HMRC?

                            Comment


                              #15
                              Originally posted by TaxationPete View Post
                              Read PIM2210. Sorry Typo.

                              Regards Peter
                              Disappointingly, the insertion of a letter I into a code does not really help clarify your confusing post #11 in the slightest.
                              'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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