HMRC Mileage Allowance Rates 2022-11-15

2022-11-15

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Questions & Answers

Q1 Partial Answer
Dan Jarvis Lab
Barnsley North
Context
Petrol costs have increased by a third since January, leading to concerns about the financial burden on key workers who rely on their vehicles for work.
Petrol costs are up by a third since January, but mileage rates for keyworkers have now been frozen for a decade. Midwives attending home births, social workers safeguarding vulnerable children and palliative nurses providing end-of-life care cannot afford the petrol they need to do their jobs in many cases. Will the Minister look to increase the mileage allowance payment rates?
The hon. Gentleman makes a fair point. I think we are all conscious of the general increase in costs faced by keyworkers, but let me make this point about the specific HMRC-approved mileage allowance payments rate. It is there as an administrative convenience for both employers and employees. Employers can choose to pay more, though they would have to check tax implications with the employee. We sympathise about fuel cost increases, which is why we cut petrol and diesel duty by 5p a litre for 12 months in the spring statement, worth £2.4 billion.
Assessment & feedback
Increase in mileage allowance payment rates
Sympathise About Fuel Cost Increases Cut Petrol And Diesel Duty
Response accuracy
Q2 Partial Answer
Dan Jarvis Lab
Barnsley North
Context
Petrol costs have increased by a third since January, leading to concerns about the financial burden on key workers who rely on their vehicles for work.
Petrol costs are up by a third since January, but mileage rates for keyworkers have now been frozen for a decade. Midwives attending home births, social workers safeguarding vulnerable children and palliative nurses providing end-of-life care cannot afford the petrol they need to do their jobs in many cases. Will the Minister look to increase the mileage allowance payment rates?
The hon. Gentleman makes a fair point. I think we are all conscious of the general increase in costs faced by keyworkers, but let me make this point about the specific HMRC-approved mileage allowance payments rate. It is there as an administrative convenience for both employers and employees. Employers can choose to pay more, though they would have to check tax implications with the employee. We sympathise about fuel cost increases, which is why we cut petrol and diesel duty by 5p a litre for 12 months in the spring statement, worth £2.4 billion.
Assessment & feedback
Increase in mileage allowance payment rates
Sympathise About Fuel Cost Increases Cut Petrol And Diesel Duty
Response accuracy
Q3 Partial Answer
Context
Concerns have been raised that MPs receive significantly more mileage allowance than domiciliary care workers, prompting calls for alignment to ensure fair treatment of the lowest-paid public sector employees.
I am sure that I am not the only Member to be concerned that, as MPs, we get considerably more than care workers doing domiciliary care visits. Can we try to even that out, so that some of the lowest-paid people in the public sector get a decent allowance?
My hon. Friend makes an important point. In my capacity as a constituency MP, I recently met with a domiciliary care company, and it is clear that this cost of running its vehicles is significant. These approved mileage allowance payments are really there as an administrative convenience for employers to support their staff. Employers can pay more but may have tax implications. The crucial point is that we cut the tax on both petrol and diesel, which was a significant measure.
Assessment & feedback
Alignment of MP allowances with domiciliary care workers
Cut The Tax On Both Petrol And Diesel
Response accuracy