Kevin Sefton, CEO of untied, has called on the Government to increase HMRC mileage rates for the upcoming new tax year. He said the Spring Statement which was unveiled last week comes at a time when drivers are facing a “triple whammy” of costs, as well as record petrol and diesel prices.
He highlighted inflation rates soaring to a 30-year-high, a fiscal drag from frozen tax allowances and National Insurance increases from April.
Mr Sefton called on the Government, saying: “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.
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Kevin Sefton added: “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.”
Many drivers are concerned that as a result of record fuel prices, in addition to household bills increasing, the mileage rate will not cover costs.
While the Government did cut fuel duty rates by five pence per litre to address fuel costs, many were frustrated that there weren’t any other protections for drivers.
According to driversnote, if a motorist travels with two or more people from the same company, they can ask their employer for an additional 5p per mile passenger charge for each additional passenger.
This can only happen if everyone who travels with the driver is employed by the same company.
Although this is possible, employers are not obliged to pay a passenger rate.
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