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Volunteer Mileage rates

Submitted by PeterTraid on Wed, 23/07/2008 - 1:56pm.
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Is anyone aware of any moves to review the tax-free mileage rate for volunteers using their own vehicles? I understand the rate hasn't changed since 2002, and with recent rises in fuel prices this is now starting to bite our (thankfully few) volunteers who do use their own cars. It must be an absolute nightmare for organisations with quite a few volunteers using their own transport.
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Volunteer Drivers Mileage rates

Submitted by Lynn H on Tue, 19/08/2008 - 3:42pm.
Hi, just wanted to add to the discussion about volunteer drivers mileage expenses. We stick to the 40p per mile threshold set by HMRC and 25p once a driver exceeds 10,000 miles. Since this rate has not increased since 2002, and petrol and running costs certainly have, our drivers are finding it increasingly difficult to drive for us, especially those that do exceed 10,000 miles. Some drivers have said they will now have to stop driving when the rate drops. This will then leave their passengers without their regular driver and make the whole scheme unmanageable. Volunteering England and the Community Transport Association (CTA)are in talks with HMRC and government officials to try and get the rate increased. I feel that unless the rate is increased soon it is going to have an impact on the most vulnerable people in society that rely on volunteers for their transport. It could be the only time that week that an elderly person gets a hot meal and meets with other people when a volunteer driver takes them to a luncheon club. If the government is serious about it's commitment to increasing volunteering then this is certainly an issue that needs addressing. The CTA also have a petition, link here (http://www.ctauk.org/petition/) and more information on this subject.
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Volunteer Mileage Rates

Submitted by Alan Murray on Mon, 28/07/2008 - 12:21pm.

Hi Peter

The debate around mileage rates is interesting and I'd like to throw something else into the mix on this one.  For me there are three types of mileage a volunteer might undertake:

  • Travel from home to their place of volunteering - For which good practice says the volunteer should not be out of pocket for.  At the RSPB we reimburse these costs based on the AA's published running costs per mile of a £13,000 - £20,000 car (http://www.theaa.com/allaboutcars/advice/advice_rcosts_petrol_table.jsp).
  • Travel on 'business' as part of their volunteering - For which I'd suggest the volunteer should be reimbursed at the same rate as staff receive in that organisation.
  • Driving is their volunteering role and they are required to use their car to do this - For this either of the above might be appropriate as is also linking payment to the HMRC allowed rates.

Organisations should really reimburse any of these costs in an open and transparent way.  In order to achieve this linking reimbursement to an external indicator does generally seem sensible.  It is clear then to the volunteer how the rate is arrived at and how the rate might change based on fuel price changes.  That said what costs should we be reimbusing just the running costs or elements of road tax and depreciation?  Is it our role to cover the costs of owning a car or to just reimburse volunteers for the mileage they do on our behalf as a volunteer?

Interested in hearing others thoughts on this issue.

Regards

Alan Murray

Head of Volunteering Development - RSPB

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Milage thoughts

Submitted by nshaw on Tue, 29/07/2008 - 8:33am.
I think/feel Alan's breakdown is a popular model and certainly in the main, is the approach i adopt. In respect of Alan's question: "Is it our role to cover the costs of owning a car or to just reimburse volunteers for the mileage they do on our behalf as a volunteer?" I have yet to come across a volunteer (including myself) who has purchased a car soley in respect of being a volunteer and engaging in volunteering activities; as such in my opinion it is not our role to cover costs in relation Road tax, depreciation etc. If people choose for example, to purchase so called "Chelsea Tractors", then they must also bare the cost of buying the vehicle of their choice. That said, as a sector what i think we should be doing is highlighting how the "credit crunch" is affecting/effecting volunteers and volunteering, in that if volunteers are priced out of the market owing to organisations simply no longer being able to afford out of pocket expenses in relation to fuel/travel, how this in turn may well impact on the economy, both locally and nationally. For those who have not already read it, i have added a piece in respect of the proposed Manchester congestion(TAX)charge, which for volunteers and volunteer organisations in Manchester will be a further nail in the coffin in relation to volunteering with the city. (please see article under "anything goes")
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Thank you both. Yes, I

Submitted by PeterTraid on Thu, 24/07/2008 - 8:39am.
Thank you both. Yes, I looked at the HMRC website (which, like most government websites, nearly induced a brain haemorrhage simply by my trying to navigate around it), but I feel that the onerous task of keeping receipts for both volunteer driving and personal driving for 2 years is too much to ask of volunteers. I've made a request to our CEO to review the rate we will pay, which is currently kept in line with the tax-free rate, but think it should be less complicated for volunteer drivers to be reimbursed actual out of pocket expenses.
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Hi there Peter,I've been

Submitted by paddaniels on Wed, 23/07/2008 - 4:39pm.

Hi there Peter,

I've been tracking this issue over on the AVM wiki. My understanding is that VE are currently trying to clarify guidance on this with HMRC. At present- Minister's are saying that there aren't any plans to change the tax-free mileage rate for volunteers.

There's more here on the wiki. I'd be really keen to incorporate people's experiences of when they've raised this issue with their local tax office.

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Patrick Daniels

Online Volunteering - YouthNet

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Volunteer Mileage Rates

Submitted by johnramsey on Wed, 23/07/2008 - 4:56pm.

As you'll see from the wiki, this has been raised in Parliament on a number of occasions, and the answer has always been you don't have to apply the rates, you can claim the actual expense. Of course it's not as simple as that, as to claim the actual expense is quite complicated and VE are trying to get that guidance simplified.

An epetition has been set up on the 10 downing street website to increase the rates:

http://petitions.pm.gov.uk/charitydrivers/

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I'm posting this on behalf

Submitted by paddaniels on Mon, 28/07/2008 - 9:42am.

I'm posting this on behalf of Michael Hughes:

"I am writing to say that as voluntary hospital car drivers we can very
easily exceed the HMRC laid down 10000 miles as we are unable to predict
when and from where patients will be required to be taken for medical
treatment. What is needed is more pressure on the goverment from the
voluntary drivers sector to have this mileage and 40ppm altered."

 

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Patrick Daniels

Online Volunteering - YouthNet

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