CWU MILEAGE RATE INCREASE

 CWU MILEAGE RATE INCREASE

 

Branches will be aware that Motion 78 (reproduced for information purposes below) was carried at the 2015 CWU Annual Conference.

 

 

78 CATEGORY A: To up rate the national Mileage Allowance Payments (MAPs) in line with the HMRC Expenses and benefits, Business Travel Mileage for the use of individuals own vehicle.

 

Mileage allowance payments within the Communication Workers Union have been paid at the old HMRC rate 0.40 pence per mile that the HMRC set pre 2011 up to 2012, as carried by Conference 2011 through Motions 47 from Merseyside Amal, and in accordance with CWU policy. The Union still continues to pay the lower rate despite the HMRC up rate of the mileage allowance to 0.45 pence per mile.

 

The union is allowed to pay those using their own vehicle a certain amount of MAPS each year without having to report them to the HMRC. This amount is called the ‘Approved Amount’ and is set by the HMRC below for cars and vans:

 

Type of Vehicle

First 10,000 miles

Above 10,000 miles

Cars and vans

45p (was 40p before 2011 to 2012)

25p

 

Therefore this conference instructs the NEC to come into line with the HMRC mileage rate and pay 0.45 pence mile to those claiming Mileage Allowance Payments. This new mileage payment is to be implemented at the earliest possible opportunity.

 

 

Accordingly the NEC has agreed that the revised rate of 45p per mile be applied to all mileage claims submitted from 2nd August 2015 (week 32) and that the 45p payments will apply until claimants reach 10,000 miles in the current tax year (2015-2016) following which the 25p per mile will be applied.  

 

For clarification purposes and to avoid any potential confusion we have provided an explanatory example of how the above policy operates in practice.

 

Example  

 

During the current Tax year (6th April 2015 – 5th April 2016) a rep can claim no more than 10,000 miles at the “higher rate” (currently 40p per mile). Once a rep exceeds 10,000 miles at the higher rate in any tax year all subsequent claims will be paid at 25p per mile.

 

So, by way of example, if from 6th April 2015 until 1st August 2015 a CWU Rep has so far submitted claims for, say 3,200 miles then these will be paid at the previously agreed rate of 40p per mile.

 

From 2nd August onwards any additional claims over and above the 3,200 already claimed, but subject to a maximum of 10,000 will claimed at the new, higher 45p per mile rate. So using the example above the next 6,800 miles will be paid at the revised rate of 45p.

 

Once the rep has claimed a total of 10,000 miles (3,200 @ 40p + 6,800 @ 45p) then any subsequent mileage claims up until and including 5th April 2016 must be paid at the 25p per mile rate.

 

Any enquiries regarding this LTB should be addressed to the Senior Deputy General Secretary’s Department on telephone number 020 8971 7237 or email address sdgs@cwu.org.

 

Yours sincerely

 

 

Tony Kearns

Senior Deputy General Secretary