Mileage rates need to be updated, says ATT

People who use their own cars for business trips are being left out of pocket by ‘severely outdated’ mileage rates the Association of Taxation Technicians (ATT) has warned.

In an autumn statement representation on mileage allowances the ATT has repeated its calls for the government to increase the amount that drivers can be paid tax-free for using their own vehicle for work.

The current HMRC approved rates for employers to reimburse employees using their own car or van for business travel are 45p per mile for the first 10 000 miles and 25p per mile thereafter. They have not been updated since 2011 and the ATT says they should now be increased to reflect the cost of using a vehicle for business accurately.

Senga Prior chair of the ATT technical steering group said: ‘Freezing mileage rates for the last 12 years means employees...