MPs' tax arrangements

Request

  1. rates of mileage allowance paid to MPs and is this taxable. When this allowance was last increased.

  2. How long it takes for for claims to be paid.


Response

IPSA holds the information that you request.

The MPs’ Scheme of Business Costs and Expenses (the ‘Scheme’) details the rate at which we will pay mileage claims.  For the first 10,000 miles the rate is 45p per mile and, thereafter, the rate is 25p.  This is the standard rate set by Parliament and administered by HMRC and was last increased on 1 April 2012.  The HMRC determines that business costs mileage, when claimed at their standard rate, is not taxable.  Eligible claims for mileage business costs by an MP or their staff are solely journeys incurred to assist the MP in carrying out his or her Parliamentary business.  Journeys for personal or party political purposes are not claimable under the Scheme.

In answer to the second part of your request, our service level is that at least 95 per cent of claims should be processed within ten working days of receipt.  We consistently achieve this level and, in practice, the majority of claims are settled within five to seven days.

Ref:
FOI2012-A034
Disclosure:
April 24, 2012
Categories:
MPs' PAY AND PENSIONS
Exemptions Applied:
None