The Government should increase the tax-free approved Mileage Allowance Payment rate of 45p per mile for the first 10,000 miles for cars and vans.
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Employees that use their own car for business journeys can claim tax relief on the approved mileage rate. They can’t claim separately for owning and running costs like fuel and MOTs, as the business mileage rate covers these expenditures.
Therefore with the increase of running costs aforementioned due to inflation, it is time the 45p is reviewed and made in line with the ever-increasing costs.
This amount should also be reviewed periodically.