Self-employed business mileage allowance
Self-employed business mileage allowance
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caiss4

Original Poster:

1,946 posts

227 months

Friday 8th February 2019
quotequote all
Before approaching HMRC I thought I'd ask here as someone like Eric Mc may no the answer.

As a self-employed ADI I currently claim my business mileage (>20k miles pa) as per the HMRC allowances.

I also have a couple of BTL properties and I generate business mileage associated with servicing those properties. In the past it's been just a few 10's of miles but this current tax year it will probably approach 500 miles (two changes of tenant etc). So my question is, is the 10,000 mile threshold applicable to each 'business' activity or is it a personal allowance?

In other words, if the threshold is 'personal' then I can only claim 25p per mile but per business I'd be able to claim 45p per mile.

To further complicate it the BTL properties are shared with my wife so we each get taxed on 50% of the net profits. She does not claim any business mileage so could I use her allowance to claim the full 45p per mile or should I calculate a composite i.e say 500 miles @ 35p per mile.

Just curious if anybody may know the answer.

Eric Mc

125,763 posts

295 months

Friday 8th February 2019
quotequote all
It's per person, not per activity (by the way, running a BTL is not classified as a "business" in UK tax law).

caiss4

Original Poster:

1,946 posts

227 months

Friday 8th February 2019
quotequote all
Thanks Eric; thought that would be the answer and, yes, I used the term business activity loosely.

Nonetheless could my wife claim half the miles related to the BTL's at the higher rate?

Eric Mc

125,763 posts

295 months

Friday 8th February 2019
quotequote all
caiss4 said:
Thanks Eric; thought that would be the answer and, yes, I used the term business activity loosely.

Nonetheless could my wife claim half the miles related to the BTL's at the higher rate?
What is your wife's relationship with the sole tradership and/or the rental property?

Is she engaging in travel at her own cost in respect of either activity?

caiss4

Original Poster:

1,946 posts

227 months

Monday 11th February 2019
quotequote all
My wife has no involvement in my sole trading but she has 50% ownership of the BTL properties and therefore shares 50% of the costs and gets taxed on 50% of the net profit.

As for actual mileage incurred managing the properties the majority is by me but, ironically, I use her car as I like to keep the BTL activity entirely separate from my ADI sole trader activity.

Eric Mc

125,763 posts

295 months

Monday 11th February 2019
quotequote all
caiss4 said:
My wife has no involvement in my sole trading but she has 50% ownership of the BTL properties and therefore shares 50% of the costs and gets taxed on 50% of the net profit.

As for actual mileage incurred managing the properties the majority is by me but, ironically, I use her car as I like to keep the BTL activity entirely separate from my ADI sole trader activity.
Your wife can therefore claim mileage for any bona fide travel she undertakes in servicing or dealing with the property.

caiss4

Original Poster:

1,946 posts

227 months

Monday 11th February 2019
quotequote all
Thanks Eric. I'll make a point of separating any mileage she generates in servicing the properties.