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Landlord glossaryTax

Mileage Allowance

A simplified way to claim the cost of driving for your lettings business: for cars and goods vehicles, 55p per mile for the first 10,000 business miles in the 2026-27 tax year (45p in earlier years) and 25p per mile after that. You claim either mileage OR the actual running costs of the vehicle, not both, and you must keep a log of business journeys (inspections, repairs, viewings).

Reviewed by Erdem VolkanLast reviewed 24 September 2026How we check facts

Rate (2026-27)
55p/mile to 10,000; 25p after (45p before 6 April 2026)
Rule
Mileage OR actual costs, plus a journey log

Why it matters

What Mileage Allowance means for a landlord

Mileage is a small deduction landlords routinely forget, yet a portfolio spread across a town can generate hundreds of business miles a year in inspections and repair visits. The catch is evidence: HMRC expects a contemporaneous log of dates, destinations and purpose, not an estimate at year end. Commuting to a single property you manage from home can be contentious, so keep the journeys clearly tied to letting activity.

Worked example

How it plays out

Joe drives 1,800 business miles in the 2026-27 tax year visiting his flats, meeting contractors and doing inspections. At 55p a mile he claims £990, and keeps a log of each journey’s date, destination and purpose.
An illustrative example. Names, places and figures are made up.

Common mistakes

Where landlords go wrong

  1. 01Estimating the miles at the end of the year.
  2. 02Claiming both the mileage rate and fuel costs for the same vehicle.
  3. 03Including private trips.

What to do

A short checklist

  • Log each journey when you make it.
  • Choose mileage or actual costs for each vehicle and stick with it.
  • Keep the log with your tax records.

Sources

Checked against these sources on 24 September 2026. A guide to the rules in England, not legal advice: for a dispute or a possession claim, speak to a solicitor.