Huge Budget boost for White Van Man with mileage AND handed a fortnight’s paternity pay
Comment now Next WHITE Van Man and millions of workers will receive a boost with the Chancellor increasing the tax-free mileage rate. John Healey will help around three million self-employed along with nurses and care workers with the move. 4 White Van Man will receive a boost from increased tax-free mileage rates Credit: Alamy 4 John Healey has put “breathing space” for households and business at the heart of his Budget Credit: PA Advertisement He will make permanent the 55p per mile rate for the first 10,000 miles with each mile after increasing from 25p to 35p.
The change comes as motorists have been struggling with rising pump prices since the start of the US-Iran war at the end of February. Sign up for the Money newsletter Thank you! Email address Please provide a valid email. Your info will be used in accordance with our Privacy Policy You'll now receive top stories, breaking news, and more, straight to your email. Ministers have billed the help as part of their plan for “everyday fixes” as Brits grapple with the cost of living squeeze.
The changes will provide around £120 a year in additional tax savings for those workers clocking up around 6,000 business miles. read more on politics TAKE A CHANCELLOR Who is John Healey? Everything you need to know about the Chancellor POLITICS FIX Healey's 'breathing space' policies in Budget risk coming across tone deaf 4 Drivers have been hit by increasing pump prices since the outbreak of the Iran war Credit: Getty 4 Nurses and carers who use their own vehicle for work will also benefit from the hiked tax-free mileage rate Credit: Getty For someone hitting 15,000 miles a year for work they could receive up to £300 in extra tax savings.
Business Secretary Jonathan Reynolds said: “Millions of people use their own car or van simply to get their job done. Advertisement “They’re nurses driving to see patients, care workers travelling from home to home and tradespeople getting up early and putting in the miles for their customers. “These are people who work hard for their money , and we want them to keep more of it. Most read in Money HEAL BLEED US DRY! Tax burden hits record as Healey raids Brits while ducking welfare cuts IS THAT IT?
Kemi says 'UK drowning in out of control welfare system' after Labour Budget POT LUCK Millions to pay tax on state pension as payments rise by £490 - but 500k spared PAY DAY Two million workers get pay RISE in Budget – will you benefit? “That’s why, after 15 years without an increase, we’re raising mileage rates. “The tax-free rate will rise to 55p for the first 10,000 business miles, while those who spend even more of their working lives on the road will see the rate above that increase from 25p to 35p.
“It might sound like a small change, but those small things add up. If you’re travelling thousands of miles a year to do your job, we want to make sure hard work pays.” Advertisement Meanwhile, an extra 150,000 new parents will be entitled to two weeks of paternity pay worth up to £194 per week allowing more time to spend with their family. This will include self-employed dads and partners who have previously missed out giving them the allowance for two weeks to spend more time with their child.
Ministers will also end the Carer’s Allowance cliff edge so unpaid carers don’t lose their whole allowance for earning just over the weekly earnings limit. New rules will mean that only £1 of support will taper away for every extra £1 earned meaning they won’t pay a financial penalty for working more hours or getting a pay rise. Import tariffs will also be removed from more than 100 products in a bid to bring down costs on family favourites such as baked beans, chocolate and gherkins.
Advertisement The move could save households £21 on their food shop every year. Comment now
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