Kevin Sefton, CEO of untied, today calls for an increase in HMRC mileage rates in the forthcoming Spring Statement on 23 March 2022
The Spring Budget this year comes in the face of a triple whammy of inflation soaring to a 30-year high, fiscal drag from frozen tax allowances and National Insurance increases from April.
After a freeze of more than a decade, we are calling on Rishi Sunak to increase the mileage rate for all vehicles – cars and vans, motorcycles and bicycles in the Spring Statement.
HMRC approved mileage rates were last changed in 2011. The rates set the benchmark for what employers reimburse their staff, and what self-employed claim as expenses. They are 45p per mile for cars and vans (for the first 10,000 miles and then 25p per mile), 24p per mile for motorcycles and 20p for bicycles.
More directly, people will be hoping for a cut in fuel duty to relieve some of the sharp increases in fuel costs affecting the whole population.
Kevin Sefton, untied CEO said, “It’s time to increase the mileage rates. This will help those who are doing business mileage as part of their employment.
“But we’re seeing particular concern among self-employed delivery drivers and others earning through platforms. For them, the cost of their vehicle is often their key expense.
“For people in their position, claiming mileage is meant to be a simplification covering all the costs of the vehicle, including the vehicle itself, maintenance, fuel and insurance. But it’s a simplification that they tell us is now costing them money compared to apportioning the actual vehicle costs. These are rising because of the increasing price of fuel and vehicles, especially those that are second hand. Higher mileage rates would be a welcome acknowledgement of these rising costs.
“A cut in fuel duty would provide wider relief against sharp-rising fuel prices, especially for those on lower incomes. As in previous Government responses, the Chancellor may note though that fuel duty has not been increased in twelve years, that receipts have been hit by the pandemic, and that tax represents a much lower share of the price of fuel than has historically been the case.”
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