Originally Posted by
Just This Once...
mileage rates have indeed gone down.
This was all covered (badly) in a brief released a number of weeks ago.
The brief went into painful detail about modern cars need servicing less, price of fuel etc etc.
That is
s. The maximum tax-free mileage allowance is 40 pence per mile which goes
someway towards the true cost of running a car - tax, insurance, MOT, servciing fuel etc.
The lower rate for travel on duty is 25p (in my case) which would be about £7.50 per gallon. That gives a margin of about £2. You would need a lot of those £2/g to pay for your annual service which of course varies both in frequency and cost car to car.
The HTD rate and the
public transport rate are supposed to compensate for using your own car in lieu of public transport. The daily deduction is supposed to equate to the amount the average worker would pay to get to work.