Observer Insurance

[waremark]

Nick, if you come up with a suitable letter to insurers covering demo drives, taking instruction, and other mutual driving activities, I should be grateful if you would share it with us.

[Porker]

Let me see what I can come up with.

P.

[michael769]

Update!

The ABI (Association of British Insurers) has brokered an agreement with most ABI insurers (covering about 85% of the UK insurance market) that means that all drivers will be provided with cover when using their vehicle in connection with any registered charity provided that they receive no financial reward (other than expenses up to the HMRC limit of 45p per mile), with no additional premium payable.

More Info. This will of course normally extend to IAM/Rospa purposes including observing.

While it may still be necessary to notify the insurer to have "for charitable purposes" added to the policy, no participating ABI insurer will refuse such a request nor apply any extra premium.

Given the competitive nature of the motor insurance market I would imagine the other 15% will be following suit.

[jont]

Seems unusually generous to me to allow the same rate as business users. If it was truly "charitable", you wouldn't be expecting anything in return.

/further thought - does that mean even if I'm not paid by RoSPA I can claim RoSPA miles (eg for demo drives) through my tax return? Hadn't even occurred to me to try previously, and I wonder how the hell it would be enforced.

[michael769]

Seems unusually generous to me to allow the same rate as business users. If it was truly "charitable", you wouldn't be expecting anything in return.

Some charities pay expenses as a matter of course (there is a local scheme where volunteer drivers take elderly/infirm folks to doctors or shops who do this) - the volunteer is only expected to contribute their time. I believe that IAM/RoADAR examiners work on this basis?

I'm guessing that the ABI decided they needed to have some kind of cap, to prevent abuse, and decided that the HMRC limit would be the fairest/most defensible.

/further thought - does that mean even if I'm not paid by RoSPA I can claim RoSPA miles (eg for demo drives) through my tax return? Hadn't even occurred to me to try previously, and I wonder how the hell it would be enforced.

That's one to ask HMRC.... But as charities are usually tax exempt - I would not be optimistic.

EDIT: Actually the tax exempt status would be a reason to allow it. Might be worth a punt.

[martine]

Yes I picked up this press release as well and have passed it onto our group treasurer - sounds good in principle.

Seems unusually generous to me to allow the same rate as business users. If it was truly "charitable", you wouldn't be expecting anything in return.

/further thought - does that mean even if I'm not paid by RoSPA I can claim RoSPA miles (eg for demo drives) through my tax return? Hadn't even occurred to me to try previously, and I wonder how the hell it would be enforced.

Remember the HMRC rate is just the amount you won't get taxed on should you be able to put it on your tax return...it's not as if they are actually giving you 45p/mile or anything.

As for enforcement...it's the same as any declaration on a tax return...you can put what you like but YOU have to be able to provide documentation to back it up if asked.

[MGF]

Donations in kind don't qualify for Gift Aid, so if the charity can't get the tax back I would be surprised the individual could.

[jont]

Remember the HMRC rate is just the amount you won't get taxed on should you be able to put it on your tax return...it's not as if they are actually giving you 45p/mile or anything.

Indeed, but any tax I don't have to pay is a bonus.

[martine]

Indeed, but any tax I don't have to pay is a bonus.

Would be good idea to check it out with an accountant before claiming I guess.