Our thanks to Community Accounting Plus for this update.
We suggest this is one for your next Committee meeting and finance people.
Many of us pay staff and volunteers 40p per mile if they use their car for work or volunteering. In the budget the Chancellor announced that from 6th April 2011 the ‘Authorised Mileage rate’ will increase to 45p for the first 10,000 miles in the year. Also the current 5p allowance for a passenger will cover volunteers as well as fellow employees.
Of course, you may not be able to afford this, or want to pay that much. These are simply the maximum you can reimburse without getting into tax issues.
Click here to go to HM Customs and Revenue website for more details.