Fuel Prices and MMA

Discussion in 'Army Pay, Claims & JPA' started by Crusty(LE), May 2, 2006.

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  1. Two questions:

    1. With fuel prices increasing almost dailiy and at they're highest level ever, why does the rate of MMA not change and why does it seem to be at the same rate as it was in 1997?

    2. What does one need to do to claim MMA at the ODR?


    edited to correct awful spellllling
  2. Hmmm I got 96 quid for a 500 mile round trip on leave. It doesn't cost me 96 quid to do 500 miles in my car. Think the rate is pretty fair
  3. The rate was fair 9 years ago and based on prices 9 years ago. Wouldn't it be far more sensible to increase the rate annually with inflation, just as all of our charges are increased (sometimes above inflation). It isn't just MMA that suffers. I believe that the resettlement grant has been the same for over 15 years (please correct me if I'm wrong), clothing allowance is another.

    As for claiming ODR. It's a myth that it even exists. I think you have to be the Pope on an official visit to God (with a letter from the MT saying there was no service transport available)
  4. Most civilian companies offer 40p or more per mile. There's generally a sliding scale dependant upon vehicle size, and the Inland Revenue do look quite closely at the rates to ensure you're not being provided with a perk/benefit that they can tax.

    The rate is designed to compensate you for wear and tear on your vehicle, as well as the cost of the petrol.
  5. I think the going rate for the civilians where I work is about 0.48p a mile, (my father in law pays 0.63p!). One of them did mention to me that I may be able to claim some tax back for the difference between MMA and the Govt allowance (0.45p?) Does anyone know what the hell he was on about because I do a lot of mileage. Please note that I am not at all sure of the figures..mainly guestimates.
  6. Might cost me that in my car the way I drive! They are supposed to compensate you for the wear and tear on your car yes, also the fact that you had to buy the blinking thing in the first place, put it through its MOT, Tax etc. If you had to hire a car to do it, it would cost them a lot more. I remember being sent away on courses and having a car hired for the trip down/back as I didn't want to put the mileage on my car. With a fuel card, they never lost out and I got to drive a brand spanking new car!

    At my civi job I get 40p/mile, which hasn't changed in the last year. So you'd have got £200 for that same journey. But there is no longer a limit to the amount of miles you can do in a year. If you have a company car you get 11p/mile, which you would probably be losing money on now!

    It should be reviewed annually IMHO.
  7. On a similar thread, have seen letter this week stating that under JPA anyone claiming MMA must have Car Insurance which covers them for business use, along with third party cover for £10m. Maybe this was always the case with MMA claims, but I doubt many people have Business use on their Policy. Anyone have any ideas?
  8. The business use insurance is certainly needed if you were considering claiming tax back on car mileage.
  9. I've not been in the Army for a few years now, but if MMR is only 20 odd p per mile then you can claim tax back as well as MMR.

    I'll hook out a link later on, but basically the tax man says that using your own car costs about 40 p a mile (remember your employer should be contributing towards more than just petrol) - so you can claim tax relief on the balance.

    If you travelled 1,000 business miles in the year then that would work out at 80 pounds in your hand for a 40% tax payer - not a lot, but you can backdate 6 years
  10. http://www.hmrc.gov.uk/manuals/eimanual/EIM31330.htm

    Allowable rate is 40p for the first 10,000 miles, and 25p there after - it drops because they assume that 25p is the variable cost of running a car, and 1500 pounds the fixed cost of insurance / age related depreciation etc.

    Any questions then post them here, and I will respond!
  11. Many thanks sretosf, all good stuff.
  12. Don't get me wrong I do think that it should increase annually, not with inflation but with the absolute rip off hikes the government insists on puitting on fuel. I was just stating that 500 miles in a 1.4 litre car doesn't cos 90 quid in fuel. Didn't really take into acocunt tyres, miles on the car etc when I first posted this.
  13. There are different types of business use and you would need Class 1 which covers you to various different places of work as your standard policy only covers you to one place of work. If you drive to work at Unit A and then to go to Unit B for a course, in your own car, you technically aren't covered on a normal policy :( Hubby and I are both covered for business use and have been for years I needed it to claim as a CS and I think we were told way back he needed it to claim as well.

    Even though neither of us need this facility at the moment we keep it going because, with our current insurance company, it doesn't actually cost us any extra to have it. I don't think it has ever cost us any extra to have this on our policy but neither of us have ever travelled extensively in our own vehicle for business - just on the odd occasion.

    Not sure about the £10 million though as I think most car insurance policies only cover between £1-2 mill (better go and check mine)
  14. diplomat

    diplomat War Hero Book Reviewer

    Look at the disparity between MMA for military and what Members of Parliament can claim per mile, (rumoured to be over 60p per mile).

    How can this be justified?

    One for the press to look at perhaps?
  15. diplomat

    diplomat War Hero Book Reviewer

    2004 Figures:

    Motor Mileage Allowance of 57.7 pence per mile for the first 20,000 miles then 26.6 pence per additional mile
    Reimburses Members for the cost of travel by car or motorbike between Westminster and Members’ constituencies and their homes and for other approved journeys on parliamentary business.