The business mileage rate has been stuck at 45p per mile since 2011 – despite fuel, insurance, and maintenance costs soaring. It’s an unfair, outdated rate that penalises the self-employed and small businesses, effectively becoming yet another hidden tax on those driving the economy.
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The Government must urgently review and increase the business mileage allowance, frozen at 45p since 2011. Fuel, insurance, and vehicle costs have risen dramatically, leaving self-employed people and small businesses out of pocket every time they travel for work. This outdated rate unfairly penalises those who keep the economy moving. Updating it to reflect real-world costs would be a fair and practical step to support SMEs and freelancers facing growing financial pressures.