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Response by the Cabinet Member: The Council through a Portfolio Holder decision has agreed (subject to the potential of call-in) to adopt a joint protocol of the WLGA Executive Board and NJC Trade Unions, which provides an increase from 45p per mile to 50p per mile for business journeys claimed, effective locally from 1 October 2022 to 31 March 2023. The protocol sets out that the additional 5p per mile payment will expire on 31 March 2023 or before if the HMRC Advisory fuel rate drops to 15.2p per mile, or where the average price of petrol decreases to £1.50 per litre or less. The protocol confirms that due to the payment exceeding the HMRC rate, the additional 5p per mile is subject to income tax and national insurance deductions (Powys apply the HMRC approved method of payrolling benefits), meaning that employees will generally receive at least 3.5p net depending on their tax status. Based on business mileage claimed and reimbursed in 2021/22, the additional cost to the Council can be estimated at £86k for the 6-month period, which includes the Employer National Insurance liability on the additional 5p per mile (reported and paid via P11D).
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