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Travel

5. Mileage Rates

5.1 Justices of the peace are currently reimbursed for costs of travel by motor vehicle, bicycle and public transport.

6. Her Majesty's Revenue and Customs ( HMRC) Guidance

6.1 The professional judiciary are paid mileage of 40p per mile up to 10,000 miles, and 25p per mile thereafter. Mileage rates for Scottish Government staff are paid at a flat rate of 40p per mile. This is influenced by the fact that employees must declare mileage rates of above 40p per mile for tax purposes.

6.2 Paying a flat rate of 40p per mile to JPs would have some attractions: it would be slightly simpler (and arguably more environmentally friendly) than the current system which is linked to the size of the car's engine; it would mean that staff only ever deal with one mileage rate when processing expenses; and it would make JPs mileage rates consistent with those of the professional judiciary.

6.3 However, it is worth noting that JPs do not hold paid office, and so their mileage rates are not subject to taxation even in cases where they exceed 40p per mile. In relation to travelling and subsistence payments, HMRC guidance states:

"[b]efore tax can be charged under the provisions relating to employment income there must be: either an office or an employment and earnings from that office or employment."

…

Unpaid office holders [include]…people who undertake unpaid work within normal commercial organisations, or within areas such as the health service, governing bodies of Further Education Colleges, or the courts…Such people may well hold an office. But they will not have any taxable earnings unless it can be shown that the office holders are being remunerated for their services." ²

7. Her Majesty's Court Service ( HMCS) Methodology

7.1 The motor mileage payments for magistrates in England and Wales are based on:

• Engine size;
• Running costs;
• Standing Charges; and
• Petrol Price.

7.2 The calculations are based upon statistics collated by the AA, which is considered the most appropriate provider of motoring and petrol statistics, in line with other government departments.

• Engine size:AA statistics are based on the motor vehicle values of below £10,000, between £10,000 and £13,000 and above £13,000. HMCSMVA rates are based on the equivalent vehicle engine sizes of 1100cc, 1101 to 1549cc and 1550cc and above, respectively.
• Running costs:HMCS reimburses the running costs of petrol, tyres, service, labour parts and replacement parts (including oil) on a pence per mile basis.
• Standing charges:HMCS reimburses only the essential standing charges of road tax, insurance and depreciation, at a rate based on the approximation that a JP's total average mileage is 8,770 miles.
• Petrol price:HMCS calculates the petrol price rate using the AA petrol price spot rate adjusted by the percentage change in the average petrol running cost per mile, as quoted on the AA website. ³
• Additional rates:
  
  • Passenger rates: are paid at a rate of 10% of the largest engine size.
  • Bicycle rates: are paid at a rate of 50% of the largest car engine size.
  • Hybrid, LPG, gas, Electric and Dual Fuel car rates: are paid at the maximum rate payable for any engine size to promote the use of environmentally friendly cars.

8. Environmental Considerations

8.1 Given current concerns regarding the impact of vehicle usage on the environment, it may be appropriate to revise travel allowances with regard to these concerns. For instance, it may be considered appropriate to adjust the rates to encourage the use of more environmentally friendly modes of transport and/or to discourage the use of those that are more environmentally damaging.

9. Public Transport

9.1 Justices of the peace are reimbursed for the actual cost of travel when fulfilling their duties. No method of calculation is required to set these rates; therefore it is not proposed to review expense payments for the use of public transport.

10. Revision of Rates

10.1 It is to be noted that the rates payable by HMCS to magistrates in England and Wales in respect of travel expenses is subject to annual revision, to take effect from 1 May each year. ⁴ A review of the rates payable within the Scottish Government is also under consideration. If it is deemed appropriate to revise JP allowances to bring rates into line with either magistrates in England and Wales, or the professional judiciary, any changes to those rates would need to be taken into account when setting rates for JPs.

Consultation Questions on Travel Expenses

Q1 Do you consider that the current allowance rates for motor mileage are reasonable?

Q2 If adjusted, do you consider the travel allowance rates should be made more consistent with the rates payable to magistrates in England and Wales?

Q3 Do you think motor vehicle rates should increase with respect to engine size?

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