Grey Fleet drivers are employees who drive their own car and use it for business.
Taking into account the administration and cost, paying a fixed mileage allowance for the use of a private car can be seen as far simpler than providing a pool car or arranging for a daily rental vehicle.
Although it can be beneficial for companies, there are a number of issues relating to grey fleet which need to be considered.
Did you know that if a grey fleet driver is using his car for business then you could be liable if he had an accident?
Companies also have a duty of care to ensure that an employee’s car is fit for purpose, has a valid MOT, is insured for business use and that the driver has a valid driving licence.
It is crucial to have systems in place so these checks are made.
Employers can reimburse staff who use their own car for business travel up to 40p per mile without any tax implications for the employee or Class 1A National Insurance implications for the employer.
However, once the employee is claiming for a journey over 80 miles in a day it would be far cheaper for the employer to provide them with a daily rental car instead.
Another thing to be aware of in regards to grey fleet is that, on average, fleet vehicles will be older and create higher emissions than company cars or daily rental vehicles.
Combined with mileage rates, which can create the incentive for additional travel, it means that businesses should look very closely at the impact grey fleet travel has on total emissions.
At Regal Rentals, our fleet management solutions help to ensure that your business makes the best use of its vehicles.
Renting a car from us means you can provide the newest, cleanest and safest vehicles for your employees on a flexible basis. We can deliver cars to the office or home and you can rent them for as little as one hour to one month.
And we also provide employers with detailed management reporting information to help monitor usage, vehicle emissions, costs and the health and safety of employees.
https://www.regalrentals.com/wp-content/uploads/2017/03/news2.jpg554720Regal Rentalshttps://www.regalrentals.com/wp-content/uploads/2017/03/logo.pngRegal Rentals2017-03-09 13:14:512017-03-21 16:19:27What you need to know about Grey Fleet