The letter asked Alistair Darling to change the rate at which charities can reimburse volunteer drivers from 40p a mile to 50p a mile. This change was designed to stop the decline in volunteer drivers who have been affected by the sharp increase in the price of fuel over the last year. The issue had been raised locally by charities that reimburse volunteer drivers for mileage.
In the reply from Andy West, Environment and Transport Taxes team, Harriett Baldwin is told, "the Government does not believe that changing the Approved Mileage Allowance Payment rate would be a well targeted way of mitigating against the cost of high fuel prices - and considers that the 40p per mile continues to strike an appropriate balance, covering the running cost of a range of cars."
However, the letter does offer a small crumb of comfort, "There is no upper ceiling on mileage payments for volunteer car drivers. HM Revenue and Customs allows volunteers to use the AMAP rate for convenience, but it is not mandatory and volunteer drivers can claim tax relief for the full cost of motoring by completing a tax return, if they wish to do so."
Harriett Baldwin said, "Although it is good to hear that there is no upper ceiling on mileage payments, most volunteers are not going to want to fill in a tax return to receive more than 40p a mile. It would be far easier if Alistair Darling could simply lift the tax free ceiling."
The e-petition has been widely taken up, making it to the Top 50 on the Downing Street website."