Budget & HMRC Mileage Allowance 2011-12
Discussion
Interesting comments about in the PH thread regarding the 1p/litre tax cut in the budget.
However, no one has mentioned mileage expense allowances for using your own vehicle for business? I think I am right in saying that the HMRC allowance has not changed since 2003?
The combined increased cost of vehicle depreciation, car tax, insurance and fuel, has not been reflected in any changes to HMRC allowances. This is such a significant issue that I am amazed more has not been said about it?
An average diesel at 40mpg average fuel consumption, costs approximately 16p/mile to run in fuel alone.
From the HMRC website: -
Employee vehicles: mileage payments for business travel
Vehicle rate per business mile 2011-12
Car: For tax purposes: 40p for the first 10,000 business miles in a tax year, then 25p for each subsequent mile
For NICs purposes: 40p for all business miles
Motorcycle: 24p for both tax and NICs purposes and for all business miles
Cycle: 20p for both tax and NICs purposes and for all business miles
However, no one has mentioned mileage expense allowances for using your own vehicle for business? I think I am right in saying that the HMRC allowance has not changed since 2003?
The combined increased cost of vehicle depreciation, car tax, insurance and fuel, has not been reflected in any changes to HMRC allowances. This is such a significant issue that I am amazed more has not been said about it?
An average diesel at 40mpg average fuel consumption, costs approximately 16p/mile to run in fuel alone.
From the HMRC website: -
Employee vehicles: mileage payments for business travel
Vehicle rate per business mile 2011-12
Car: For tax purposes: 40p for the first 10,000 business miles in a tax year, then 25p for each subsequent mile
For NICs purposes: 40p for all business miles
Motorcycle: 24p for both tax and NICs purposes and for all business miles
Cycle: 20p for both tax and NICs purposes and for all business miles
mike325112 said:
sjg said:
Going up to 45p/mile for first 10k miles. Beyond that, unchanged at 25p. Nothing mentioned about the others.
Wheres that from?http://www.hmrc.gov.uk/budget2011/tiin6310.pdf
Point 1.150:
This Budget announces three further steps to support motorists:
�
- vehicle excise duty rates will increase by RPI indexation only in 2011-12, and rates for Heavy Goods Vehicles will be frozen;
- for motorists who are required to use their own vehicle for work, the Approved
Mileage Allowance Payments (AMAPs) rate will rise to 45 pence per mile for the first 10,000 miles and 25 pence per mile thereafter. In addition to claiming
AMAPs rates, an allowance for passenger payments currently in place for business
employees, at 5 pence per passenger per mile, will be extended to volunteers; and
- the Government has today formally submitted a derogation request to the
European Commission for a rural fuel duty rebate pilot scheme. This is intended
to deliver a 5 pence per litre duty discount on petrol and diesel across the Inner and Outer Hebrides, the Northern Isles, the islands in the Clyde and the Isles of Scilly.
http://cdn.hm-treasury.gov.uk/2011budget_complete....
http://www.hmrc.gov.uk/budget2011/tiin6310.pdf
This Budget announces three further steps to support motorists:
�
- vehicle excise duty rates will increase by RPI indexation only in 2011-12, and rates for Heavy Goods Vehicles will be frozen;
- for motorists who are required to use their own vehicle for work, the Approved
Mileage Allowance Payments (AMAPs) rate will rise to 45 pence per mile for the first 10,000 miles and 25 pence per mile thereafter. In addition to claiming
AMAPs rates, an allowance for passenger payments currently in place for business
employees, at 5 pence per passenger per mile, will be extended to volunteers; and
- the Government has today formally submitted a derogation request to the
European Commission for a rural fuel duty rebate pilot scheme. This is intended
to deliver a 5 pence per litre duty discount on petrol and diesel across the Inner and Outer Hebrides, the Northern Isles, the islands in the Clyde and the Isles of Scilly.
http://cdn.hm-treasury.gov.uk/2011budget_complete....
http://www.hmrc.gov.uk/budget2011/tiin6310.pdf
Posted here yesterday!
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
I thought you were all just ignoring me!
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
I thought you were all just ignoring me!
Toffer said:
Thank you Simon...I had missed the increase to 45p/mile...which is great, but pitiful when you think it had not increased for eight years? 
Why is everyone whining when we finally do get a long overdue increase? Considering how much debt we are in it would've been the easiest thing in the world to ignore and keep treating business car drivers on a par with paedophiles like the last lot, but they didn't.Caulkhead said:
er no...But thanks for posting and its great news, about bloody time too!!!
Toffer said:
Thank you Simon...I had missed the increase to 45p/mile...which is great, but pitiful when you think it had not increased for eight years?
The last Government wanted to knock the 40p rate on the head altogether and have 25p across the board but they abandoned the idea after an outcry from NHS staff (community midwives, health visitors etc).Gassing Station | General Gassing | Top of Page | What's New | My Stuff