Tag Archives: mileage

Tory freeze on tax-free mileage means drivers will have to pay to work. Was this the plan?

Fuel costs are rising but mileage allowances for people who use their own car to work are not. Soon, employees will be paying to work, instead of being paid.

Did the Tories intend to create a system in which drivers would have to pay to go to work, when they froze the tax-free mileage allowance at 45p?

Or is it just their intention totake advantage of it to push you into poverty – or further into it?

Here’s the situation:

Employees who use their own vehicle for work can claim back 45p a mile tax-free from their company for the first 10,000 miles they drive in a year, after which the rate falls to 25p a mile.

Mileage Allowance Payments cover vehicle expenses such as fuel, vehicle maintenance, depreciation, insurance and road tax. But the cost of fueling a car alone now nearly covers the entire mileage rate.

With fuel costs rising and maintenance costs increasing, the Treasury is facing calls to raise the allowance which has not changed since 2010.

From the source article, the government has not commented on the issue. Why not?

Perhaps Tory demands that home working should end after the Covid-19 lockdowns were premature?

Source: Freeze on tax-free mileage means drivers will soon have to pay to work

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