It has been recently been disclosed that council employees and councillors are being paid the exorbitant rate of 65p per mile for use of their own cars on Council business. This is 50% above the MAXIMUM permitted by HMRC as legitimate business expenses. Anything over that they treat as back-door income and it must be declared as such and tax paid accordingly on the excess.
Further the employer, the Council must also declare this information and pay employers NI on the excess. In this context councillors are treated as employees.
The leader of the Council recently announced that the rate had been reduced but will not say what to. We have submitted a Freedom of Inofrmation Request to force his hand.
Meanwhile the Labour Councillors have announced that from now they will only claim 45p per mle. But are they going to pay back the excessive amounts they have claimed already. And what about last year and the year before. It is too little too late.
45p is the maximum permitted. It is not a "recommended" amount. There is no justification for paying the full amount for example for smaller engined cars which are now more popular.
We challenge them to reveal whether in past years they have declared this excess on their tax returns becasue if not they are guilty of tax evasion a criminal offence which bars them from serving as Councillors.
