Asked by: Dan Jarvis (Labour - Barnsley North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the feasibility of increasing the standard mileage and fuel rates in line with inflation.
Answered by James Cartlidge - Shadow Secretary of State for Defence
Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee’s expenses for business mileage in their private vehicle.
The government sets the AMAP rates to minimise administrative burdens. The AMAP rates aim to reflect running costs including fuel, servicing and depreciation. Depreciation is estimated to constitute the most significant proportion of the AMAP rates.
Employers are not required to use the AMAPs rates. Instead, they can agree to reimburse a different amount that better reflects their employees’ circumstances. If an employee is paid less than the AMAP rate, they can claim Mileage Allowance Relief (MAR) on the shortfall. However, where payments exceed the relevant AMAP rate, there will be a tax and National Insurance charge on the difference.
Like all taxes and allowances, the Government keeps the AMAP rate under review.
The Government also sets out Advisory Fuel Rates (AFR) for company car users. These rates reflect average miles per gallon (MPG) for vehicle types from manufacturers’ information, taking into account annual sales to businesses, combined with petrol and diesel prices.
AFRs are not mandatory, and employers and employees can agree to use different rates to reflect scenarios in which a car is more fuel efficient or where the fuel cost per mile of business travel is higher. Where an employer pays a rate higher than the published AFRs, no tax charge will arise if the employee is able to demonstrate there is no profit element.
The AFRs are reviewed by HMRC on a quarterly basis.
Asked by: Dan Jarvis (Labour - Barnsley North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish the formula used to calculate standard mileage and fuel rates.
Answered by James Cartlidge - Shadow Secretary of State for Defence
Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee’s expenses for business mileage in their private vehicle.
The government sets the AMAP rates to minimise administrative burdens. The AMAP rates aim to reflect running costs including fuel, servicing and depreciation. Depreciation is estimated to constitute the most significant proportion of the AMAP rates.
Employers are not required to use the AMAPs rates. Instead, they can agree to reimburse a different amount that better reflects their employees’ circumstances. If an employee is paid less than the AMAP rate, they can claim Mileage Allowance Relief (MAR) on the shortfall. However, where payments exceed the relevant AMAP rate, there will be a tax and National Insurance charge on the difference.
Like all taxes and allowances, the Government keeps the AMAP rate under review.
The Government also sets out Advisory Fuel Rates (AFR) for company car users. These rates reflect average miles per gallon (MPG) for vehicle types from manufacturers’ information, taking into account annual sales to businesses, combined with petrol and diesel prices.
AFRs are not mandatory, and employers and employees can agree to use different rates to reflect scenarios in which a car is more fuel efficient or where the fuel cost per mile of business travel is higher. Where an employer pays a rate higher than the published AFRs, no tax charge will arise if the employee is able to demonstrate there is no profit element.
The AFRs are reviewed by HMRC on a quarterly basis.
Asked by: Dan Jarvis (Labour - Barnsley North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many registered employers of PAYE taxpayers were subject to enforcement action due to non-payment of (a) income tax and (b) national insurance in each year since 2010.
Answered by Richard Fuller - Shadow Chief Secretary to the Treasury
HMRC only ever considers enforcement action as a last resort. Many customers that they take enforcement action against will have multiple debts and they apply their powers consistently across all debts and customers, regardless of how the tax arose.
HMRC do not treat PAYE debts any differently and so do not collect or hold data on the number of cases in which enforcement action was taken against employers or employees, where an employer refuses to pay their liabilities.
Asked by: Dan Jarvis (Labour - Barnsley North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many PAYE taxpayers were subject to enforcement action due to non-payment of (a) income tax and (b) national insurance by their employers in each year since 2010.
Answered by Richard Fuller - Shadow Chief Secretary to the Treasury
HMRC only ever considers enforcement action as a last resort. Many customers that they take enforcement action against will have multiple debts and they apply their powers consistently across all debts and customers, regardless of how the tax arose.
HMRC do not treat PAYE debts any differently and so do not collect or hold data on the number of cases in which enforcement action was taken against employers or employees, where an employer refuses to pay their liabilities.
Asked by: Dan Jarvis (Labour - Barnsley North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the oral contribution of the Financial Secretary to the Treasury of 25 May 2022, Official Report, column 168WH, what recent discussions he has had with his officials on waiving car parking charges for NHS workers; and when his Department plans to respond to the hon. Member for Barnsley Central in writing.
Answered by Lucy Frazer
Throughout the pandemic, our NHS workers have gone above and beyond to protect public health and this Government has supported NHS workers in any way it can.
As part of the Government’s manifesto commitment to introduce free hospital car parking for in-need groups, NHS staff working overnight are able to access free hospital car parking and 97% of Trusts that charge for parking have implemented this commitment.
Asked by: Dan Jarvis (Labour - Barnsley North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of increasing the standard mileage and fuel rates for NHS workers in line with the increased cost of petrol.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The Government sets the Approved Mileage Allowance Payments (AMAPs) rates to minimise administrative burdens. AMAPs aim to reflect running costs including fuel, servicing and depreciation. Depreciation is estimated to constitute the most significant proportion of the AMAPs.
Employers, including the NHS, are not required to use the AMAPs. Instead, they can agree to reimburse the actual cost incurred, where individuals can provide evidence of the expenditure, without an Income Tax or National Insurance charge arising.
Alternatively, they can choose to pay a different mileage rate that is higher or lower than AMAPs. However, if the payment exceeds the amount due under AMAPs, and this results in a profit for the individual, they will be liable to pay Income Tax and National Insurance contributions on the difference.
The Government keeps this policy under review.
Asked by: Dan Jarvis (Labour - Barnsley North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has plans to increase financial support for patients using large volumes of electricity for medical equipment to treat health conditions at home.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
Living with a long-term illness or disability can impact significantly on the cost of living. This is why the Government invests heavily in supporting disabled people who are both in and out of work through the welfare system.
The Government is helping people with the rising cost of energy bills by providing financial support worth £550 to most households. Households with a domestic electricity meter will receive a universal rebate of £400 through the Energy Bills Support Scheme. In addition to this, English households living in Council Tax Bands A-D are receiving a £150 rebate. None of this has to be repaid.
The Government is providing further support for vulnerable households, through the Warm Home Discount of £150 for up to 3m people, and the continuation of Winter Fuel Payments and Cold Weather Payments.
The Government is also offering an automatic one-off £150 disability cost of living payment to individuals in receipt of non-means tested disability benefits, paid by September.
The Government continues to support vulnerable groups through NHS services. The additional funding announced at the Spending Review, made possible by the new Health and Social Care Levy, means that the NHS resource budget will increase to over £160 billion in 2024-25. These investments will allow the NHS to continue providing the services people need.