The HMRC has, after nearly 20 years, decided to increase the tax free allowance for casual car mileage from 45p/mile to 55p/mile late last week.
This was supposed to be determined by a technical committee. When the tax free limit was imposed, most councils (incuding DCC) wrung their hands and said they would like to pay more but had to keep their rates in line with the HMRC limits. That policy commitment must now be respected.
So, we expect all employers, including DCC, to now raise their casual car mileage rates to 55p in line with the HMRC rate.
Please remember that as casual users, you cannot be contractually obliged to provide a car for work.
