Reeves confirms 20p per mile cycling to work rate in new scheme | Personal Finance | Finance

Chancellor Rachel Reeves has confirmed a 20p per mile rate for those who cycle to work. The Labour Chancellor outlined her Great British Summer Savings Scheme in the Commons this week, introducing revised mileage rates.

Those required to use their own vehicle for work purposes in the UK — excluding ordinary commuting — will now be entitled to claim tax relief at 55p per mile for the first 10,000 miles travelled during the tax year. This represents a 10p rise from the previous rate of 45p per mile.

However, the rate for cyclists — set at 20p per mile regardless of whether they travel under or over 10,000 miles — will remain unchanged.

For those who drive as part of their job, such as care workers travelling between clients, employers are able to reimburse mileage costs through what is known as an ‘Approved Mileage Allowance Payment’, on which neither tax nor National Insurance is due.

Responding to the wide-ranging changes, Fiona Eastwood, Chief Executive Officer of Merlin Entertainments, said: “This is great news for the UK’s visitor economy and for families planning trips this summer.”, reports Birmingham Live.

“As the season gets underway, this timely move from the Government will make it easier for people to get out, explore and create memorable moments together at destinations across the country.

“Merlin will be applying this VAT cut to both admission tickets and children’s meals, adding more value to days out and short breaks at our 20 UK attractions.

“We’re excited to welcome more families to our resort theme parks and immersive experiences for a summer packed with fun, play and lasting memories.”

Activities where no VAT is charged (e.g. because these benefit from exemptions or zero-rating) aren’t in scope, including activities under the cultural exemption, such as admission to not-for-profit museums, zoos or theatres.