AIM

This policy is intended to provide clear car sharing guidance because it can sometimes be embarrassing for car owners and drivers to ask for expenses when car sharing for u3a purposes; and it can also be difficult for passengers to know what the correct amount to offer should be.

POLICY

• Passengers should contribute to expenses for car sharing.
• A car driver’s insurance policy will normally cover all occupants providing passengers pay no more than their share of expenses and no further insurance is necessary.
• The cost of the journey is based on the maximum car mileage charge of 45p per mile allowed for tax claim purposes by HMRC (currently March 2024).
• Because this money is car costs shared between friends and not a payment for travel by an employer, there is no tax liability.

The total cost for the journey is shared equally between all occupants, including the driver.
For example: A journey of 10 miles would result in a total cost of £4.50. If the car contains three occupants, the driver and two passengers, the total cost is split three ways, making a contribution of £1.50 per person.