Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of increasing in line with inflation the rate per mile that self-employed people can claim on their vehicle usage.

Self-employed people can get tax relief for fuel and other business motoring expenses using either the simplified mileage rate or by claiming capital allowances and actual expenses. The mileage rate is an easier way of calculating the costs of owning and running a vehicle for tax purposes, intended to balance accuracy with administrative simplicity for businesses by using an average. This means that the rate will be more appropriate for some drivers than for others. The simplified mileage rate is designed to reflect vehicle running costs including fuel, depreciation, servicing, insurance, and Vehicle Excise Duty and in setting the rate the Government uses information from a variety of sources.

As with all taxes, simplified mileage rates are kept under review and any changes are considered and announced by the Chancellor at fiscal events.