The Exchequer Secretary to the Treasury (Robert Jenrick)
I thank the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) for raising an important issue about which I know that he feels strongly—as do others, which is evidenced by the fact that so many Members have stayed in the Chamber to listen and contribute to the debate. Like me, the hon. Gentleman represents a rural area where the distances that constituents must travel to visit doctors, dentists, opticians and hospitals are considerable; in his case, they are very large indeed, perhaps larger than those in any other constituency. I know that he raised this issue during his time at Holyrood —I have seen the questions that he asked and the answers that he received—and I am glad that he has had the opportunity to raise it again in the House of Commons.
The Government greatly value the significant contribution of members of the public who, as volunteers, support others up and down the country. We recognise that those who provide transport, particularly in rural areas, enable vulnerable people, such as the elderly and those without cars, to have the access to appointments or treatment that would otherwise be very challenging, very expensive, or both. As was pointed out by my hon. Friend the Member for Moray (Douglas Ross), it is not simply a question of practicality; it is also a question of the care, the kindness and the company that the volunteers give to others. I have seen that myself when I have volunteered once or twice with my own local voluntary transport scheme in Nottinghamshire.
I pay tribute on behalf of the Government to both the individuals and the voluntary transport schemes. The volunteers who staff many of these schemes make them possible. In my constituency, we benefit from a superb scheme run by Lucy Fountain in Newark, who I have got to know and respect enormously. I believe that, as the hon. Member for Caithness, Sutherland and Easter Ross says, the Government do and must play a role in ensuring that the schemes continue, that volunteers are respected for the time and commitment they put in, and that they are not at any financial disadvantage.
As a Treasury, we need to consider carefully the barriers standing in the way of people doing this work—I believe that we have done that, but I hope we will continue to do so. Tonight, I am very happy to outline where we stand and the work we have done in recent years, but I also accept the suggestion of a meeting to take these matters forward.
It is right that the tax system should allow volunteers to be reimbursed for their reasonable expenses and it must be the principle that wherever possible volunteers are not left out of pocket. Organisations are free to reimburse volunteers at whatever rate they choose but, to make it easier for volunteer drivers and to create simplicity in how one is reimbursed for the miles driven, the Government allow organisations to make approved mileage allowance payments, or AMAPs. Payments within the AMAPs scheme do not incur a liability to tax, as the hon. Member for Caithness, Sutherland and Easter Ross explained.
The scheme covers reasonable costs associated with using a private car for business miles or voluntary work and the approved rates, as we have heard, are set at 45p per mile for the first 10,000 miles and 25p thereafter. The reason for the higher rate for the first 10,000 miles has always been to reflect the fixed and variable costs associated with operating a car. No matter how small the number of miles driven, motorists will of course always be liable to pay for insurance, servicing the vehicle and purchasing a new one in due course. In general, that means that when driving a shorter distance the overall cost per mile is higher than when those fixed costs are spread over a greater number of miles. Drivers carrying passengers can also claim an additional 5p per mile per passenger. For volunteer drivers, of course, this is particularly relevant, but it is also designed to incentivise people to take part in drive to work schemes and so on. If a driver is travelling with one passenger, 50p per mile could be paid tax-free for the first 10,000 miles. It should be stressed that 50p is only the maximum outlined by the Government. Many voluntary transport schemes choose, at their discretion, to offer a lower sum. My own in Nottinghamshire offers 42p per mile, so there are questions of variations across the country that are outside the control of the Government.
Volunteers are also afforded one further preferential treatment. Unlike for employees, the reimbursement of a volunteer’s travel expenses covers them from home to the place of voluntary work. When one is travelling from one’s home to pick up a patient in their home, all of that journey is reimbursed. This can be considerable. However hard voluntary transport schemes like my own try to match the patient with the volunteer, the distances in a constituency such as the hon. Gentleman’s can be very large, so that preferential treatment is important.
Seen in the whole, we think that the current rates represent a fair allowance for the vast majority, ensuring that volunteer drivers are not left out of pocket. The system is designed to be simple and clear, as volunteers are required only to record their annual mileage rather than to keep any other motoring records or expenses. As the hon. Gentleman said, such a requirement would be too onerous for volunteers. It has to be said that the vast majority of volunteers do not exceed 10,000 miles of volunteer driving, but I appreciate that regional variations exist.
To take an example from England for context, a QualityWatch report found that only 3% of emergency admissions travelled more than 30 km to a hospital, with an average distance of just under 9 km. Preparing for this debate, I asked my own voluntary transport scheme. It covers a rural area—far less rural than the hon. Gentleman’s constituency, but an area where hospitals are 20 to 30 miles away from the principal town. I appreciate that that is only a fraction of the distances he described. The average mileage for a volunteer driver in that rural area was 4,000 miles a year, and the busiest driver last year completed 9,000 miles. I do not want to dismiss those individuals who drive more than 10,000 miles. I am sure there are some, and the hon. Gentleman and other hon. Members from the highlands of Scotland have mentioned some of them—
Robert Jenrick
As I was saying, I am sure that the hon. Gentleman is correct and that there are individuals who travel more than 10,000 miles a year. We have to recognise that, by definition, these are the most active and the most public-spirited members of the public. They are giving up enormous amounts of time; they are almost professional volunteers, given the amount of time they are willing to give up. Their generosity should be provided for and their costs reimbursed wherever possible.
Douglas Ross
We are focusing in this debate on volunteer drivers, but will the Minister also take this opportunity to acknowledge that there are others in our communities who help? For example, Keith Cancer Link, which was established 35 years ago in Moray, raises money to pay for taxis to take people from Keith to Aberdeen and Elgin for their treatments. It is right that we highlight what the drivers do, but we should also highlight what others in our constituencies do to help.
Robert Jenrick
I am happy to agree with my hon. Friend. There is a range of schemes across the country, particularly in the rural areas that most of the hon. Members here tonight represent. They include volunteer driver schemes and community bus schemes, as well as schemes run by the whole range of charities supporting hospitals and healthcare across the country.
Returning to the question of those travelling more than 10,000 miles a year, I am pleased to report to the hon. Member for Caithness, Sutherland and Easter Ross that there is provision for them, but it is slightly different from what he has outlined this evening. HMRC allows individuals to claim their actual costs if they travel more than 10,000 miles—or indeed any mileage—at the discretion of the individual or the community transport scheme. Those who travel particularly long distances and feel that the rates do not cover their costs should ask their community transport scheme for the actual costs of their motoring. The individual will need to keep records to show that no taxable profit has been made, but there is no need for them to make any declaration to HMRC or to include the information on a tax return unless they make a profit, which presumably they do not.
I would encourage the hon. Gentleman’s constituents to consider asking the organisations they volunteer for to reimburse their actual costs, if they feel that that would more accurately reflect the costs of their motoring. The organisations might wish to do so, at their discretion, for the small number of volunteers who exceed 10,000 miles. I do not doubt that some individuals will fall into that category, and that in some parts of the country, such as his own, there will be a considerable number. There is an opportunity for them to do this with relatively little burden on themselves. It will certainly not involve the level of reporting that he thought would be required. To ensure that all those who use AMAPs understand their entitlement, HMRC last week published new guidance relating specifically to volunteer drivers, which includes the point that I have just made. We hope that it will provide a useful resource, and I will place a copy of it in the Library of the House.
To conclude, I again thank the hon. Gentleman for raising this issue. I should also like to thank the volunteer drivers across the country who play such a valuable role in many of our communities, particularly in the rural parts of the United Kingdom. I have listened closely to his comments, and to those made by others who have spoken in the debate tonight, and I would be more than happy to continue the conversation in a meeting with him and any other rural Members who would like to join in. As with all taxes, the Treasury keeps the AMAPs system under review, to ensure that it continues to be fit for purpose and to achieve its stated aim. I am happy to do that again, as I am sure the Chancellor will do as we approach the Budget in November.
As I have set out this evening, we believe that the current system is fair and consistent for the majority. For the small number who go the extra mile and who travel more than 10,000 miles, there is that additional system under which they can claim their actual costs with only a relatively low burden to themselves and the organisations they volunteer for. I hope that the guidance published at my request on Friday by HMRC will provide further clarity, and I suggest that the hon. Gentleman looks at it. I am happy to provide it to him. If he has comments or concerns about it, we can discuss them in the conversation that I hope we will have in the coming weeks. I hope this has been helpful, and I look forward to continuing this conversation and to ensuring that volunteer drivers across the country are properly respected and reimbursed for the important contribution that they make.
Question put and agreed to.