'Outdated Business Mileage’ Rate Causing Painful Shortfall For Employees And Volunteers Say Expend
The standard 45p per mile refund rate leaves employees out of pocket.
Photo: Chuttersnap on Unsplash.
Expend, the expense management fintech, is calling for an end to the ‘outdated business mileage’ rate which causes a painful financial shortfall for employees and volunteers.
Expend provides technology to help businesses manage employee expenses, but their feedback suggests that employers and employees are increasingly frustrated by the shortfall.
Low mileage allowance also has an impact on charities.
The poor historic rate is also affecting charities, which rely on volunteers using their own cars for key activities.
Johnny Vowles
Photo: Expend
Johnny Vowles, added:
“Our clients include social purpose charities and care homes, and they tell us that the low mileage rate discourages volunteers from signing up because 45p means that they are not covering their personal costs of motoring. As volunteers they don’t want to be paid, or make a profit from a mileage claim, but neither should they lose money.
"Business motoring expenses encompass more than just fuel costs and mileage," says Johhny. "From vehicle maintenance and insurance premiums to depreciation and wear and tear, the true cost of business motoring often goes unrecognised. Unfortunately, the approved mileage allowance falls short in addressing these additional expenses, leaving employees and volunteers at a financial disadvantage."
Expend is calling for the allowance to be reviewed by HMRC.