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Warning Over Private Cars Used for Business Purposes
You may have heard the phrase "Grey Fleet" - the term for employees who drive their own vehicle for business use.
And the reason why so many companies are focusing on them is because they can run up high costs and pose a serious health and safety threat.
Companies who pay staff a 'pence per mile' allowance to use their own car for business travel typically pay either the HMRC tax free reimbursement rate of 40 pence per mile for the first 10,000 business miles followed by 25 pence per mile thereafter, or they pay an amount which they feel is fair.
However a recent report showed that some companies are being far too generous, with figures reaching up to 70 pence per mile in some isolated cases.
For 10 drivers each driving 10,000 miles per annum using their own vehicle that equates to a whopping £70,000. However, even using the HMRC figures, the same 10 drivers are still costing £40,000 and cynics would say that when drivers become accustomed to that money coming through on their monthly expenses they may be tempted to orchestrate unnecessary journeys to top up their income.
Then there are the Health and Safety concerns.
Drivers using their own vehicles for business travel remain the responsibility of the employer. To this end, the "company" must ensure that the drivers hold a valid licence, that their vehicle is correctly insured for business use, that they have been risk assessed, and that the vehicle is safe to drive - which includes being properly maintained.
"We are having more conversations with companies about their grey fleet than ever before", said Phil Elms, Sandicliffe Motor Contracts' National Sales Manager.
"And in almost every instance we can help them save money, and also protect themselves from ever-stringent duty of care laws with minimum cost and fuss."
If you would like to discuss your grey fleet with us, simply call Phil Elms on 01159 466 466 or email phil.elms@motorcontracts.co.uk
<< show all articles
Warning Over Private Cars Used for Business Purposes
You may have heard the phrase "Grey Fleet" - the term for employees who drive their own vehicle for business use.
And the reason why so many companies are focusing on them is because they can run up high costs and pose a serious health and safety threat.
Companies who pay staff a 'pence per mile' allowance to use their own car for business travel typically pay either the HMRC tax free reimbursement rate of 40 pence per mile for the first 10,000 business miles followed by 25 pence per mile thereafter, or they pay an amount which they feel is fair.
However a recent report showed that some companies are being far too generous, with figures reaching up to 70 pence per mile in some isolated cases.
For 10 drivers each driving 10,000 miles per annum using their own vehicle that equates to a whopping £70,000. However, even using the HMRC figures, the same 10 drivers are still costing £40,000 and cynics would say that when drivers become accustomed to that money coming through on their monthly expenses they may be tempted to orchestrate unnecessary journeys to top up their income.
Then there are the Health and Safety concerns.
Drivers using their own vehicles for business travel remain the responsibility of the employer. To this end, the "company" must ensure that the drivers hold a valid licence, that their vehicle is correctly insured for business use, that they have been risk assessed, and that the vehicle is safe to drive - which includes being properly maintained.
"We are having more conversations with companies about their grey fleet than ever before", said Phil Elms, Sandicliffe Motor Contracts' National Sales Manager.
"And in almost every instance we can help them save money, and also protect themselves from ever-stringent duty of care laws with minimum cost and fuss."
If you would like to discuss your grey fleet with us, simply call Phil Elms on 01159 466 466 or email phil.elms@motorcontracts.co.uk