Agenda item

            The Sub Committee received a report of the Strategic Director, Health and Community which set out the current position and the options to amend Volunteer Driver mileage rates.

 

The Volunteer Driver scheme was a long-running, person-centred service managed by Transport Co-ordination for Adult Social Care and Children’s Services.  There were 15 volunteer drivers, who drove 177,919 miles in 2007/08.  The average number of miles per driver was 11,861.

 

Following an internal audit of operational practice of the volunteer driver scheme in 2006/7 and to ensure payments were in line with ‘Volunteering England's’ guidelines for tax-free mileage allowance payments, the mileage rate for all volunteers was reduced from 44.8p to 40p for the first 10,000 miles and 25p per mile thereafter.

 

In December 2007, the Council’s volunteer mileage rate for driving above 10,000 miles was increased from the Inland Revenue approved mileage rate of 25p to 33.5p. The volunteer, if driving above 10,000 miles, should now declare payments made by the Council and their expenses to the Inland Revenue, who would then determine the volunteer’s tax liability. Eleven volunteers stopped driving in 2007/08, 6 because of the rising cost of fuel/combined mileage rates and 5 for personal reasons.

 

            Using information from the AA, the present rates of 40p for less than 10,000 miles and 33.5p above 10,000 miles, would allow the driver to recover their costs of motoring for a car costing under £10,000. However, if a volunteer drove a car costing more than £10,000 when new, the costs of motoring would not be recovered.

 

            Any increase above these rates would lead to a "taxable profit" in the Inland Revenue’s eyes with tax potentially being paid by the driver or the driver having to confirm their true cost of motoring.

 

            By comparing Halton’s rates against neighbouring local authorities responses to an email survey conducted by Transport Co-ordination, this revealed that the proposed option 2, as set out below, would be in line with payment rates of neighbouring and other Local Authorities.

 

The following options were considered:-

 

Option 1

 

Continue paying all volunteers the present mileage rates of 40p up to 10,000 miles and 33.5p above 10,000 miles or revert to the Inland Revenue Mileage approved rate of 25p above 10,000 miles. 

 

This could lead to a loss of volunteers but would reduce costs.

 

Option 2

 

Pay volunteers a flat mileage rate of 40p. 

 

Volunteers would be more inclined to drive over 10,000 miles as their costs would be covered, although they would have to submit details of the income and all motoring expenses to the Inland Revenue.   Volunteer Drivers would need to be advised of their obligations in respect of a tax with a letter issued, as for the APS service.

 

The cost would be an additional £5550 if 7 of the existing drivers continued to drive above 10,000 miles.

 

Option 3

 

Pay volunteers a rate above 40p per mile or a salary for driving their own car on a casual basis. 

 

If volunteers received payments which attracted income tax, they might need to licence their cars as a private hire vehicle. They would have to declare all earnings as a self-employed person and could no longer claim that they were “volunteer” drivers.

 

Option 4

 

Employ volunteers as casual drivers using HBC fleet vehicles. 

 

It may be necessary to purchase additional vehicles if the current fleet could not meet demand.  The volunteer would become an employee of HBC. This would be at a considerable additional cost and, on a value for money basis, more costly than current arrangements.

 

            Of the above, option 2 struck the best balance between appropriate remuneration, retaining volunteers and ease of process. In addition, the volunteer driver mileage rate would be subject to quarterly review, given that the current price of fuel would fluctuate.  Benchmark information from the AA or Inland Revenue would be used to set the rate.

 

            RESOLVED: That

 

(1)       Option 2, mileage rates for volunteer drivers be increased from 33.5p to 40p per mile, when driving in excess of 10,000 miles be approved; and

 

(2)       the Strategic Director - Health & Community, in consultation with the Portfolio Holder for Health & Social Care, be authorised to review and amend the volunteer driver mileage rate and arrangements having regard to the actual costs of motoring.