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Drivers count the cost
Drivers counting the cost as bills soar
Motoring costs have shot up by as much as 28 per cent in the past five years. But the pence-per-mile rate drivers, which can claim for using their own private cars for business, has stayed exactly the same.
10th December 2007
This Approved Mileage Allowance Payment (AMAP), set by HM Revenue and Customs (HMRC), is meant to compensate motorists for fuel, servicing and other driving costs.
Yet while the rate has been stuck at 40 pence per mile since it was first introduced in 2002, our table shows that driver costs have risen dramatically during that time – to the point that they are now woefully inadequate. Paul Biggs of the Association of British Drivers told us: “It’s blatantly obvious the rates should be going up in line with the cost of motoring. We are now at the stage where hard-working people are being left seriously out of pocket just because they use their car for work.
“What makes matters worse is the fact that the Government’s recent proposals to change the system involved basing the rates on the CO2 output of your vehicle. If these were implemented, in theory the amount received could be even less.”
HMRC refused to speculate on a rate review, but its spokesman said: “We’ll have to wait for the Chancellor’s 2008 Budget to see whether any changes are in the pipeline.”
Yet while the rate has been stuck at 40 pence per mile since it was first introduced in 2002, our table shows that driver costs have risen dramatically during that time – to the point that they are now woefully inadequate. Paul Biggs of the Association of British Drivers told us: “It’s blatantly obvious the rates should be going up in line with the cost of motoring. We are now at the stage where hard-working people are being left seriously out of pocket just because they use their car for work.
“What makes matters worse is the fact that the Government’s recent proposals to change the system involved basing the rates on the CO2 output of your vehicle. If these were implemented, in theory the amount received could be even less.”
HMRC refused to speculate on a rate review, but its spokesman said: “We’ll have to wait for the Chancellor’s 2008 Budget to see whether any changes are in the pipeline.”
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Motoring costs...
2002/2007/Increase
Road tax: £160/£205/28 per cent
MoT: £39.25/£50.35/28 per cent
Insurance*: £578.59/£628.93/9 per cent
Annual
Fuel bill**: £1,003.80/£1,273.98/27 per cent
Total: £1,781.64/£2,158.26/21 per cent
*Based on a 35-year-old man living in South London, driving a Ford Mondeo 2.0, with a clean licence and five years’ no claims.
**Calculated over 10,000 miles with average fuel prices of 77.9ppl for 2002 and 100.08ppl for 2007. Source: Catalist
2002/2007/Increase
Road tax: £160/£205/28 per cent
MoT: £39.25/£50.35/28 per cent
Insurance*: £578.59/£628.93/9 per cent
Annual
Fuel bill**: £1,003.80/£1,273.98/27 per cent
Total: £1,781.64/£2,158.26/21 per cent
*Based on a 35-year-old man living in South London, driving a Ford Mondeo 2.0, with a clean licence and five years’ no claims.
**Calculated over 10,000 miles with average fuel prices of 77.9ppl for 2002 and 100.08ppl for 2007. Source: Catalist
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