Why Does The Tax Man Wish To Dismiss Landlord Mileage Claims?
OnTax Accountants In Dunfermline is wondering if it's time to put the car on the bricks, proverbially speaking! We have discovered that the tax man has won a business mileage claim case which is expected to have massive effects on thousands of landlords.
OnTax Accountants In Dunfermline has learned that the case is about a geriatrician, Dr. Samadian who was working full-time for two private hospitals and had a home office for administrative purposes but not for attending patients. We have also learned that the case has been running for seven years now and three tribunal hearings are along the way. It started back in 2006 when HMRC started a full inquiry into the claims.
Mileage Claims In Court
The first-tier tribunal ruled out that a doctor’s business mileage claims to and from his home office and hospitals where he works as not permissible mileage claims. We believe that this could have a huge impact on all the people who have setup home offices and work from homes. Also, we learned that the judges did not accept the doctor’s home office as his starting point for the private practice of his business mileage.
It was because any return journey back to home could or could not be work journeys i.e. he could just be coming back home for his personal interests and claims them to be his work travels and in return claims the business mileage. We have learned that the Judges did not accept the doctor’s home office as his starting point for the private practice of his business mileage. It was because any journey back to home could or could not be work journeys i.e. he could just be coming back home for his personal interests and claims them to be his work travels and in return claims the business mileage.
HMRC's Treatment Of Landlord Mileage Claims Is A Shock!
A Judges Viewpoint On Mileage Claims
The point that the judges wanted to highlight was that these trips to and from home could be for commuting as well, which are not permissible business expense. We have come to know that the doctor submitted his weekly journey mileage between the NHS and the private hospitals and his home and the private hospitals to support a 65% business mileage claim and also capital allowance claim on his self-assessment return.
We have also learned that the judges totally refused to allow this to the doctor, so the issue went to a tribunal. HMRC claimed that these trips back could be or could not be for business purposes. The judges agreed, and favoured HMRC’s argument.
Wait For The Final Decision...
This ruling will be a disaster for those who run their work from home but at the same time work at other locations too. We believe that landlords specifically will be hugely hurt by this ruling, because they usually work from home but charge business mileage for their trips to rental properties for business purposes.
We are of the view that it will leave a bad effect on all the landlords but especially on those who have their properties a long way from their homes or overseas. However, the geriatrician, Dr. Samadian is expected to appeal against this decision.
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