Volunteer Drivers expenses

posted by Lynn H on Thu, 10/04/2008 - 4:54pm

Does anybody know if volunteer drivers who drive over the 10,000 miles per year threshold set by HMRC and who still receive 40p per mile (the HMRC website states after 10,000 miles per year only 25p per mile is non taxable and anything paid above this the driver would be deemed to be making a profit) changes the status of a volunteer driver to car hire.

After doing some digging I am of the opinion it does and that to remain legal the payment has to be restricted to 25p per mile after the 10,000. In view of the rising cost of petrol and insurance this is going to make it increasing difficult to recruit new drivers. Any comments.

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On Tue, 06/05/2008 - 3:17pm

I would think that very few organisations have volunteer drivers who cover more than 10,000 miles PA.  However, I think that to pay them the full 40p after the 10,000 miles would certainly expose them to problems with taxation.

The difference is to take in to account the elements of depreciation, servicing, road tax, insurance, etc. that are fairly fixed annual costs.  Beyond 10,000 miles the payment is only calculated to cover petrol, wear and tear and a small amount of additional depreciation.

This has not been a major issue in my experience as it is often quite hard to persuede volunteer drivers to to accept the mileage they are entitled to.

 This is only my view of course, I'm sure others will offer contrasting ones!

Steve

 

Steve Gee

Volunteer Development Manager

Cancer Research UK

By Steve Gee --

Steve Gee

Volunteer Development Manager

Cancer Research UK

On Tue, 13/05/2008 - 10:51am
10000 miles PA is 200 nearly a week. If your volunteers are happy to do that regularly you are definitely doing something right. You certainly wouldn't want to overpay the drivers and leave them open to be inspected for taxes, then probably overtaxed and have to chase the tax office to the end of the world to get it back. But in terms of recruiting new volunteers, I think they'll be accepting in the change of rate if you explain why, I think what will put them off more is the expectation to do 10000 miles a year! I can't think of an opportunity where this number is even likely. Even so, it is better to gradually introduce a volunteer with a number of shorter drives first before hitting them with an expectation of 10000 miles. Just my view... what is the opportunity? Alex
By Alex W