Reeves says she might raise mileage rates for drivers using cars for work

Drivers may be able to claim back more in expenses for mileage, after Rachel Reeves said she was considering increasing the minimum tax-free amount.The Chancellor said she understood driving costs had risen “significantly” in recent years, as the current rate of 45p-per-mile was last updated 15 years ago.The Approved Mileage Allowance Payment defines how much employees can be reimbursed tax-free for using their own cars for work.Drivers can currently claim 45-per-mile tax-free for the first 10,000 miles and is supposed to cover running a vehicle, including insurance and servicing. After that drivers can claim 25p-per-mile. An additional 5p/mile can be claimed for each passenger transported.