People who use their own cars for business trips are being left out of pocket by ‘severely outdated’ mileage rates the Association of Taxation Technicians (ATT) has warned. Senga Prior, chair of the ATT technical steering group, said: ‘Employers who opt to pay higher rates to better reflect the actual costs of motoring end up creating a tax liability for themselves and their employees.
‘If the HMRC rates were updated more regularly – and set at a level that other government departments and local authorities were prepared to accept – this would simplify the position for employees, introduce consistency between the private and public sector and reduce administration costs across government.’
The Bank of England’s inflation calculator suggests that 45p in 2011 would be equivalent to 63p by August 2023, according to the 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People who use their own cars for business trips are being left out of pocket by ‘severely outdated’ mileage rates the Association of Taxation Technicians (ATT) has warned. Senga Prior, chair of the ATT technical steering group, said: ‘Employers who opt to pay higher rates to better reflect the actual costs of motoring end up creating a tax liability for themselves and their employees.
‘If the HMRC rates were updated more regularly – and set at a level that other government departments and local authorities were prepared to accept – this would simplify the position for employees, introduce consistency between the private and public sector and reduce administration costs across government.’
The Bank of England’s inflation calculator suggests that 45p in 2011 would be equivalent to 63p by August 2023, according to the ATT.
