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While the Government continues to secretly accept backhanders, the poor old company car driver suffers at the pumps. All animals are equal but some are more equal than others!
While the Government continues to secretly accept backhanders, the poor old company car driver suffers at the pumps. All animals are equal but some are more equal than others!
News comes that HMRC will now review fuel rates twice a year rather than when fuel rates have fluctuated by 10% in either direction. Apparently this should ensure company car drivers are not out of pocket.
The way the rate of fuel has been rising at the pumps this will be of little consolation to the company car driver. A quarterly review I believe would be more appropriate in this day and age of fluctuating prices.
And news comes in that the UK's biggest union may go out on strike over Approved Mileage Allowance Payment (AMAP) rates. They contest quite rightly that employees should not be expected to subsidise their employers while at work. While fuel rates have skyrocketed 30% in the past five years, AMAP rates have remained static, paying just 40 pence per mile for the first 10,000 miles and 25 pence thereafter.
The Government will review AMAP in April 2008 at the earliest despite having held consultation talks earlier in the year that ended in the summer. Meanwhile, fuel duty went up by two pence.
HMRC claims the rate is designed to cover all types of car and is generous for the small type of car that it is encouraging drivers to use. Well that's all well and good but there are plenty of employees who are currently tied into larger cars which cost a darn sight more than 40 pence per mile to run.
Consult many of the different tables available to calculate the cost per mile of running an average family saloon and the figure is upwards of 50 pence per mile.
Government needs to act quickly before it gets more egg on its face. A strike by the country's largest union over AMAP rates would be the icing on the cake. The nation could then be forgiven for thinking that the country had well and truly gone to the dogs.
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