Running on empty

A number of my clients are complaining that the tax-free mileage allowance does not reimburse them for the cost of running their own cars on company business.

They are considering returning to the practice of providing company cars and reimbursing claims for the business mileage based on HMRC's advisory fuel rates.

Would Taxation readers have any comments on the wisdom of this?

Query 17 290                                        — Maid of Ayrshire.

Reply by JWG:

I have one brief comment. I cannot comment on the wisdom of this approach. There are two reasons.

The first reason is that I cannot see into the future. There are two mileage rates. The first are the advisory fuel rates that are used when paying mileage for the business use of a company car where no fuel is provided. These rates have increased over the past. Will they increase in the future?

The second rates that are...