Stealth tax traps 5 million drivers

A report in the Daily Telegraph reveals that 5 million drivers are increasingly hit be a new stealth tax. The tax is as a result of the UK Government's failure to index mileage allowances paid to people who legitimately use their cars on business purposes. The Inland Revenue allows employees and the self-employed to claim 40p for each mile driven on business. According to the AA (Automobile Association) the true cost of driving now averages 44p per mile, leaving most employees 4p out of pocket. Many employees work for employers - some of them voluntary bodies - where the rate paid is even lower than the Government maximum. Anybody being paid more than the 40p minimum would have the balance taxed as income!!!! The current 40p per mile limit was set in 2002. Since then petrol, insurance and road taxes have all risen faster than the general rate of inflation.