MAKE ME A PLAN BACKS CAMPAIGN TO INCREASE HMRC MILEAGE ALLOWANCE
Cornwall company adds its voice to growing calls for reform that would benefit thousands of workers across the UK.
Make Me A Plan is proud to announce its support for the campaign to increase the HMRC Approved Mileage Allowance Payment (AMAP) rate, joining trade unions including Unison and a growing number of organisations calling on the government to update a rate that has remained unchanged for over a decade, while the cost of living has soared.
The current HMRC permitted mileage allowance stands at 45p per mile for the first 10,000 miles and 25p per mile thereafter — rates that were introduced in the 2011-12 tax year, and have not kept pace with rising fuel costs, vehicle running costs, or inflation. For the many people who drive as part of their work, particularly those in care and support roles, this shortfall is being noticed every single day.
A further frustration for employers who wish to support their teams is that HMRC rules currently prevent organisations from voluntarily topping up mileage payments without tax consequences. Any payment above the approved rate is classified as a taxable benefit, meaning employees would be required to declare the additional amount and pay tax on it, while employers would face the administrative burden of filing a P11D for every affected employee. This effectively prevents well-meaning organisations from bridging the gap themselves, making government action all the more urgent.
Make Me A Plan's founder Anna Pascoe said: "I've previously explored voluntarily increasing this with organisations I work with but unfortunately HMRC rules mean this would be classed as providing a taxable perk if for example a business decided to pay more per mile, which would mean team members would have to declare and pay tax on the extra amount and the company would have to go to the expense of filing a P11D for every employee, so it's really restrictive."
Make Me A Plan is calling on its community, partners, and supporters to get behind this campaign. We encourage everyone to follow, share, and amplify content from Unison and other campaigning organisations working to bring about this long-overdue change.
Together, we can make sure this issue gets the attention it deserves.
