Mileage rates capped

Mileage rates for volunteer drivers in Shropshire have been capped at 40p, after the national tax threshold was frozen by HM Revenue & Customs for the fourth year running.

Shropshire County Council officials said the HM Revenue & Customs threshold for volunteer mileage rates meant that payments to volunteer drivers had to be capped at 40p per mile. Letters have been sent to every driver in the county affected by the change, which is due to come in this Saturday (1 December).

Katie Willocks, the county council's Voluntary Car Service organiser, said: "We have written to volunteer drivers about this, and we hope they understand that we have had no real alternative. This is not a cost-cutting exercise by the council. The problem is that our annual inflationary increases have gone over the HM Revenue & Customs 40p threshold, which causes issues for tax and insurance payments. So we have reluctantly decided to cap the mileage rate at 40p for now, while we hope HM Revenue & Customs will increase the threshold.

“The 40p threshold has remained the same since 2002/03, despite regular increases in fuel costs. Volunteer drivers cover about one million miles per year and provide a great service for Shropshire people: the county council wishes to continue to support voluntary driving, and will work with volunteers to try and find a solution.”

29 November 2007