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AA: Cost of motoring leaving employees out of pocket

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Drivers of approved used cars claiming petrol costs on their business expenses could soon fin themselves out of pocket, it has been claimed.

According to the AA, drivers using small petrol cars are about to find that the cost of motoring is set to exceed the tax-free limit associated with the statutory mileage allowance.

The scheme allows employees to claim up to 40p per mile for the first 10,000 miles travelled for business purposes without being taxed. However, AA figures indicate a small petrol car now costs 42p per mile to run.

As well as affecting employees, the motoring group claims that this will deepen the crisis surrounding the shortage of volunteer drivers.

"This is yet another squeeze on the drivers' pocket, courtesy of more tax, higher fuel costs, dearer insurance and poorer second-hand values. With VAT rising 2.5 per cent next year and fuel prices heading up, the strain will get worse," said AA president Edmund King.

The AA recently revealed that support for speed cameras on UK roads has now reached 75 per cent of the driving population.ADNFCR-2576-ID-800233473-ADNFCR


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