Fleet News

Commons suspend rules governing mileage allowances

NEW rules which state that MPs must give details of business journeys before claiming mileage allowances have been suspended - because MPs say they are too tough. The regulations say MPs must give details of each trip for which they are claiming expenses - as is the case for company car drivers across the UK as well as anyone facing Inland Revenue self-assessment.

However, some MPs are calling for the regulations to be relaxed and the rules have now been put on hold, pending talks by Speaker of the House of Commons Betty Boothroyd with both main parties. Boothroyd is hoping talks will resolve the dispute - but, according to a Commons spokesman - if the matter drags on too long Boothroyd will 'impose her own solution'.

The rules were introduced after MPs agreed recommendations in a Senior Salaries Review Board report on pay and allowances published in July 1996. As a result of the same report MPs - while voting themselves a £9,000 pay rise - agreed a Review Board recommendation to slash their top level mileage allowance of 74.1 pence per mile for the first 20,000 miles for cars over 2.3 litres. They cut the rate, with effect from April this year, to 47.2 pence up to 20,000 miles and 21.7 pence for mileage over 20,000. The allowance for MPs whose cars are between 1.3 and 2.3 litres stayed at 47.2 and 21.7 pence, with the under 1.3-litre band remaining at 31.3 and 16.3 pence.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee