Outdated mileage rates need to be updated, says ATT

Low-paid workers who have to use their own vehicles for work are being left out of pocket by ‘outdated’ mileage rates the Association of Taxation Technicians (ATT) has warned.

The current rates – 45p a mile for the first 10 000 miles and 25p a mile thereafter – have not been updated since 2011 despite the cost of running a car increasing substantially in that time.

The ATT has previously called for the mileage rates to be increased along with other organisations including the Low Incomes Tax Reform Group and has made a representation ahead of the upcoming Budget.

ATT president Senga Prior said: ‘These rates have been frozen for so long employees are no longer being reimbursed the true cost of their business travel. The Bank of England’s inflation calculator suggests that 45p in 2011 would be worth 64p by...