It is possible to write off fuel expenses for travel in your private car is it is used for your work, just like hundreds of midwives, and uncountable thousands of business executives, and district nurses do regularly.
Regardless, the tax-free limit has not been updated from 40 pence per mile, though petrol prices have rocketed at the pump. The Government staunchly refuses to correct this discrepancy and bring it up to date.
The AA reports that operating even a small vehicle runs the average person 43 pence per mile, and a vehicle the size of the Vauxhall Astra can exhaust a person of over 53 pence for every mile. This is due to the new record peak in diesel prices yesterday, at 134p per litre. The last peak in prices was in 2008, when it hit 133p in July.
The Treasury threshold is 22.68 pence, while those operating a family vehicle must scrape up 62.68 pence for every mile.
The drive to stabilise fuel will increase because of these figures, resulting in a reduction in duty for the driver as they pump their fuel and fuel prices continue to rise.
Accountants verify that many companies match the Treasury limit when reimbursing their employees for the cost of fuel when using their own vehicles for company business. This can only mean that the “grey fleet” of Britain will have to shell out hundreds of pounds from their own earnings in order to support business operations of the companies they work for.
The Treasury’s failure to track the rising fuel costs means that the normal distance a vehicle operator drives will cost them £381 from their own pockets for a year. The family car operator will have to shovel out £1,907 over the year.
