Mileage claim

Driving to a viewing, an inspection, a check-out or to meet a contractor is a cost of running the property business, and HMRC lets you claim it at a flat rate per mile instead of working out the actual running costs of the vehicle. It is one of the most commonly missed deductions, largely because landlords do not think of themselves as making business journeys.

The rate changed on 6 April 2026. For cars and goods vehicles the first 10,000 business miles in the tax year are now claimed at 55p, up from the 45p that had applied since 2011. Everything above 10,000 miles stays at 25p for 2026-27; Budget 2026 (28 October 2026) announced 35p from 6 April 2027 for cars and vans, with the legislation due later this year. Motorcycles are 24p for every mile. Because the old rate stood for fifteen years, a great deal of published guidance still says 45p, so check the year you are actually filing for.

The flat rate covers everything to do with running the vehicle: fuel, insurance, servicing, repairs and depreciation. You cannot claim it and the running costs of the same vehicle, and you cannot claim it at all on a vehicle you have already claimed capital allowances on. Once you use the flat rate for a vehicle you have to keep using it for as long as that vehicle is in the business.

Parking, tolls and public transport are separate and can be claimed on top. What the mileage rate replaces is the cost of the vehicle itself, not every travel cost.

What this saves you depends on your tax rate rather than on the claim itself. The mileage comes off rental profit, so a basic-rate landlord keeps 20% of it and a higher-rate landlord 40%. On 1,200 miles at the 2026-27 rate that is a £660 deduction, worth £132 or £264 depending which band you are in.

HMRC expects a record, not an estimate at the year end. Each trip needs a date, the property it was for and the miles. A running log kept through the year is the difference between a claim you can stand behind and one you withdraw when asked.