Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will review the mileage allowance rates for self-employed people in the context of recent increases in the cost of fuel.

Self-employed people can get tax relief for fuel and other business motoring expenses using either the simplified mileage rate or by claiming capital allowances and actual expenses. The mileage rate is an easier way of calculating the costs of owning and running a vehicle for tax purposes, intended to balance accuracy with administrative simplicity for businesses by using an average. This means that the rate will be more appropriate for some drivers than for others. Fuel is only one component of the rate, as it also covers the business proportion of other motoring costs such as servicing, insurance and depreciation.

The Government keeps all taxes under review, including the simplified mileage rate for the self-employed.